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ESCT Tax Rates
- Employer KiwiSaver contributions are taxed at the top employee marginal tax rate, based on the estimated employee annual earnings.
- The annual estimation and tax rate selection is automatically handled by Ace Payroll, but can be overwritten as shown below.
See Also
ESCT On IRD Monthly Returns
What Is ESCT?
ESCT Calculation
ESCT Tax Rates
IRD Website - ESCT Guide
 | If you prefer to select your own tax rate then from Modify Employee Details select the KiwiSaver tab, then click over the rate required. |
Notes
- Having the tax rate dynamically estimated by Ace Payroll means that if annual earnings change, the tax rate is automatically adjusted.
- If employee annual earnings are around the $57,600 threshold between the 17.5% and 30% rates, some employers may wish to "lock in" the rate of their choice.
- If setting your own rate, note that the annual earnings estimate must include employer kiwisaver contributions.
Rate Band Estimation
Employed Full Year
If the employee has been employed for all of the tax year immediately before the tax year in which the superannuation is paid, the rate band is the total salary and wages paid in the previous tax year, including the gross amount of the employer KiwiSaver contribution before ESCT is deducted.
Newer Employees
For employees that have not been employed for all of the previous financial year, the threshold is the total amount of salary and wages, inclusing he gross amount of employer KiwiSaver contributions, that the employer estimates will be paid in the current year.
 | I can't see how Ace Payroll estimates the rate band. Can you explain it? |
- For employees that were employed for the full previous financial year, Ace Payroll uses the full year figures.
- For newer employees Ace Payroll uses an average of the pay history available.
- For a brand new employee, Ace Payroll uses the current pay for estimation purposes.
There are only four rate bands, with the vast majority of employees falling within the very wide 17.5% band - annual earnings between $16,800 and $57,600 a year.
A specific rate band is easily "locked in" if required as shown above.
More KiwiSaver Information
| KiwiSaver Automatic Enrolment Every person that starts a new job is automatically enrolled in the scheme more.. | KiwiSaver Exempt Employees Under 18, over 65, and casual employees are exempted from automatic enrolment more.. | KiwiSaver Contribution Rates
All members must contribute 3% of gross wages and may contribute 4% or 8% more.. |
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KiwiSaver Opting Out An employee has 8 weeks from the start of employment to opt out of the scheme more.. |
KiwiSaver Opting In Anyone can opt in to the scheme at any time. Once opted in, an employee can never opt out more.. |
KiwiSaver Contributions Holiday All applications for a contributions holiday must be made to the IRD using a KS6 Contributions Holiday request form more.. |
| KiwiSaver Employer Contributions All employers must contribute 3% for each employee enrolled in KiwiSaver more.. | ESCT - What Is It? A description of Employers Superannuation Contributions Tax and how it is paid more.. |
| ESCT Tax Rates Employer KiwiSaver contributions are taxed at the top employee marginal tax rate, based on estimated annual earnings more.. |
ESCT on IRD Monthly Returns I am doing my monthly return for IRD and the ESCT figure does not show on my IR348 return. What is wrong? more.. | KiwiSaver Contributions Report The KiwiSaver Contributions Report keeps track of contributions, reversals and refunds more.. |
| KiwiSaver Reversals and Refunds Use the Reversals and Refunds Wizard to reverse and optionally refund KiwiSaver deductions to employees that were automatically enrolled, and then opted out of KiwiSaver more.. | Total Remuneration Use when an agreed salary package includes KiwiSaver employer contributions more.. |
| KiwiSaver Scheme Providers The linking of employees to scheme providers does not happen at the payroll end of the process more.. |
Exempt Schemes How to disable the deduction of compulsory employer KiwiSaver contributions for employees in exempt KiwiSaver schemes more.. |
| Ace Payroll FAQ Contents All the most common Ace Payroll questions grouped by categories in a short table of key words more.. |
Ace Payroll Frequently Asked Questions All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more.. |
KiwiSaver Forms
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