by Rob Hosking
KPMG tax expert Murray Sarelius says the error will hit some firms hard.
"You might be talking $200, $300 short per employee but if you've got a lot of employees joining KiwiSaver that is going to add up to quite a lot."
Revenue Minister Peter Dunne's tax adviser Rachel Baxter says the government is aware of the issue and is working on a solution.
At the moment the plan is to include changes in Parliament's annual May tax bill – which, this year, will be in June.
That bill is not usually passed until October or November, and, with an election due around that time, Sarelius says passage could be delayed until early in the New Year.
"In the meantime you have employers have to deal with this starting on 1 April this year.
"I would also spare a thought for people trying to design payroll systems to deal with this. It's pretty clear this will be fixed, eventually, but it creates an administrative nightmare in the interim."
Baxter says the government is still drafting its proposed solution, and will be consulting with business and the industry shortly. Feedback on the timing will be considered, she says.
Rob Hosking is a Wellington-based freelance writer specialising in political, economic and IT related issues.
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