Parental Leave
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      Setting Up a Keep in Touch (KIT) Hours Employee Profile

      KIT Hours require a separate profile. This article shows you how to set this up.

      Updated: November 2024

      Parental Leave is considered continuous employment, so do not archive your original employee profile - you can use this after the 26 weeks of government-paid parental leave ends. Find out more about payroll during parental leave from this dedicated article.

      Why a separate profile?

      • To simplify your record-keeping, calculations and tracking.
      • KIT hours are limited to a maximum of 64 during the 26 weeks of government-paid parental leave. This number should not be exceeded.
      • The employee will be on a secondary tax code for these payments, as their government funding will be their main stream of income.
      • The main reason is to keep the before-parental-leave balances untouched, which will simplify your calculations:
        • if the work pattern changes on return to work, it is easy to back-date the change and update the balances on their first pay when back, or
        • if the employee doesn't return to work, it is easy to set the final pay. In this situation, any KIT hours will be after the termination date and outside of final pay calculations.
      Info - Blue Block (1)

       

      		 Note: Use 'Standard Pay' in the original profile for sporadic return-to-work periods after the 26-week government-paid parental leave period has ended.

      How to Set Up the Profile

      KIT_EmployeeAltProfile

      Employee Profile Tab

      • You can use the employee's initials instead of full name to easily identify the profile
      • Be sure to use the correct IRD number for this employee
      • Suggestion: Use the parental leave start date as the first date of employment. It will assist with monitoring your 26 weeks.
      KIT_EmployeeAltProfile_StPay

       

      Standard Pay Tab

      • Set the rate to $1 per year, so that you will easily identify this profile.
        • A standard pay rate cannot be 0.
        • This will have minimal impact if 'standard pay' is added accidentally to the timesheet.
      • Use the secondary tax code stated in the employee's IR330.
      • NB: Select to show pay types on the payslip, as the main pay type will be a custom pay type you want visible.
      KIT_EmployeeAltProfile_PayTypes

       

      Pay Types Tab

      • Set up a Taxable allowance pay type with their regular hourly rate
      • As this will be the main entry on the timesheet, be sure to use an easily recognisable name
      KIT_EmployeeAltProfile_Leave

       

      Leave Tab

      • As these hours are per agreement, they should be excluded from calculations for annual leave.
      • Set the leave method as 'included in existing pay rates'.
      • Select 'No' for holiday pay inclusion. 

      *If the employee is enrolled in KiwiSaver, add the KiwiSaver contribution rates to the KiwiSaver Tab.

      What you'll see in the Timesheet

      KIT_EmployeeAltProfile_Timesheet

      • Select your custom pay type for KIT Hours.
        • This could be the only line in the timesheet as the employee.
      • Enter the number of KIT hours as applicable. Remember: these are limited to 64.
        • You can select the 'Exclude from annual leave calculations' tick box, but this will automatically be the case because of your leave setting.

      There you have it.
      Your employee's KIT hours will not affect their calculations or Final Pay setting.