When processing New Zealand pay batches, FastTrack360 determines the applicable KiwiSaver deduction rate for each payee by resolving the deduction rule that is valid at a given reference date.

This ensures that the correct rate is applied in accordance with the Inland Revenue Department (IRD) statutory requirements.

Previously, for normal New Zealand pay batches, the system selected the applicable payee KiwiSaver deduction rate by comparing the validity dates of the deduction rule against the pay period end date.

Where a KiwiSaver rate change took effect on a date falling between the pay period end date and the payment date, for example, where the pay period ends on 28 March 2026 but the payment date is 1 April 2026, the system applied the rate valid as at the pay period end date rather than the rate legally in effect on the date of payment.

Now, for New Zealand pay batches where the batch type is a Normal Batch, the system applies the payee KiwiSaver deduction rate using the payment date as the reference date for resolving the applicable deduction rule.

This applies at both the Gross Deductions and Net Deductions stages of pay batch processing, ensuring that where a rate change takes effect between the pay period end date and the payment date, the rate in effect on the payment date is applied.

For Adjustment Batches, the existing logic is retained unchanged. All other New Zealand deduction types continue to use the pay period end date for rate selection, as before.

This update ensures that KiwiSaver deduction rates for normal New Zealand pay batches are applied in accordance with IRD statutory requirements, under which earnings are attributed on a receipts basis, and the payment date governs the applicable rate.

If a KiwiSaver rate change takes effect mid-period, the correct rate is applied automatically based on when the payment is made, without the need for manual intervention.