What is ESCT on my payslip?
What is ESCT on my payslip?
Employer superannuation contribution tax (ESCT)
What is the ESCT tax rate?
3%
Employer contributions are compulsory, and the minimum amount you need to pay is 3% of the employee’s gross salary or wage. You pay ESCT to Inland Revenue along with your PAYE and other employer deductions.
What ESCT rate should I use?
31 March 2022 – set ESCT to 17.5% for the new tax year. 31 March 2023 – set ESCT to 30% for the new tax year.
How is ESCT rate calculated NZ?
The rate of ESCT to deduct can vary for each staff member….1. Work out each employee’s ESCT rate.
| Employee’s income for year ended 31 March (including gross employer cash contributions) | ESCT from 1 April |
|---|---|
| $0 to $16,800 | 10.5% |
| $16,801 to $57,600 | 17.5% |
| $57,601 to $84,000 | 30% |
| $84,001 to $216,000 | 33% |
When was ESCT introduced?
Application date. The amendments apply from 1 April 2008. There is a “savings” provision for any returns filed on a different basis before the introduction of the bill on 14 September 2011.
Is the employer contribution to KiwiSaver taxed?
You’ll need to pay tax on all your employer contributions to KiwiSaver schemes and complying funds. It’s called the employer superannuation contribution tax (ESCT). You do not pay this if you and your employee have agreed to treat some, or all, of your contribution as salary or wages under the PAYE rules.
How do you calculate ESCT?
ESCT is calculated on each whole dollar of your employer contribution….For each employee you need:
- the employee’s salary or wage for the pay period.
- the employee’s tax code.
- the employee’s KiwiSaver or complying fund contribution percentage.
- your contribution percentage.
- the ESCT rate.
Is ESCT compulsory?
You’ll still need to pay employer superannuation contribution tax (ESCT) on all your voluntary contributions.
How do I work out ESCT?
Does an employee have to pay FBT?
You need to pay FBT even if the benefit you provide is to an associate of your employee, or is provided by a third party under an arrangement with you.
How is the employer contribution to KiwiSaver calculated?
Your employer must contribute at least 3% of your gross earnings on top of your regular pay unless: they’re already paying into another eligible scheme for you. you’re under 18 or over the age of eligibility. you’re not currently contributing from your pay.
How do you work out employee super contributions?
Super is calculated by multiplying your gross salary and wages by 10%; this is known as the superannuation guarantee. Super is based on your Ordinary Time Earnings (OTE).
