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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

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If you prefer to select your own tax rate then from Modify Employee Details select the KiwiSaver tab, then click over the rate required.

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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.


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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 Overview
An overview of everything an employer needs to know about KiwiSaver more..
KiwiSaver Employee Setup
KiwiSaver employee setup in Ace Payroll more..
KiwiSaver Pay Calculation
KiwiSaver deductions are fully automated each pay more..
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..
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 Calculation
ESCT is payable on all KiwiSaver employer contributions 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..
KiwiSaver Company Setup
For most employers no company setup is required in Ace Payroll 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..
Alphabetical Index
The Ace Payroll alphabetical index provides links to all documentation 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

image KS1 Employee Details
An employer uses this form to notify Inland Revenue about
  • a new employee being enrolled automatically.
  • an existing employee opting in.
image KS2 KiwiSaver Deductions
An employee uses this form to provide details to an employer if they are
  • starting new employment.
  • an existing employee opting in.
  • a member contribution rate change.
image KS3 Employee Information
An introductory guide for an employee about the KiwiSaver scheme.
KS4 KiwiSaver Employer Guide
A 36 page overview of your KiwiSaver responsibilities as an employer.
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KS6 Contributions Holiday
An employee uses this form to request a contributions holiday.
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image KS10 New Employee Opt Out
An employee uses this form if they have been automatically enrolled and don't want to be a member of KiwiSaver.