Overview
New Zealand ESCT (Employer Superannuation Contribution Tax) is based on the rate set in the Tax Information tab. This should be regularly reviewed to ensure that the rate being applied is in line with the Employee's Annualised Salary.
The thresholds shown on the tax information screen when viewing are for information purposes only; therefore, when thresholds are updated, historical records will still show the thresholds as of today. It is only the rate assigned that impacts the calculation and not the threshold.
Solution
When a rate needs to be updated, please follow the steps below:
Click edit to enter a cease date on the original record. We recommend you use the pay period end date as the cease date.
Click Assign Tax Information to create a new record. Use the day after the cease date of the new record.
Enter the following information:
IRD Number
Tax Code
ESCT Rate
