Employer KiwiSaver Contributions

Go to the Pay Details screen (MPPP2310).

In the Employee ID field, select the employee you want to set up employer super contributions for.

On the Taxation tab, choose the Employer Super Contribution settings:

1. Taxation Method – Select either ESCT or PAYE. All employer contributions paid to a superannuation fund, including KiwiSaver schemes and complying funds, are liable for ESCT (employer superannuation contribution tax). The exception to this is if the employee and employer have agreed to treat some or all of the employer contribution as salary or wages under the PAYE rules.

2. ESCT Rate – If you selected ESCT as the Taxation Method, you need to select a rate. The ESCT rate is based on the employee's salary or wages plus gross superannuation employer contributions received in the previous tax year, 1 April to 31 March. For more information, see page 19 of IRD Employer’s guide – IR335.

3. Super Contribution is Grossed Up – Sometimes, an employer may be "locked in" to an employment agreement where they contribute a set percentage of their employee's salary. In this case, you might need to gross up the employer contribution so the employee receives their full entitlement.

   If you select this checkbox, the net employer contribution is the 3% employer contribution.

   If you don't select this checkbox, the net employer contribution is 3% employer contribution minus ESCT / PAYE on Employer Super.

On the form toolbar, click the Save icon.