Employee Share Scheme

From the 1 April 2017, Employee Share Schema (ESS) benefits can optionally be taxed but must be reported in the Employer Monthly Scheduled (EMS) tax remittance report.

To set up Greentree for ESS payments:

1. Create the ESS Taxed and ESS Non-Taxed employer cost transaction types
2. On the Main tab, select Amount and Changeable as the Calculation Method.
   • When you select Taxed, Greentree adds this to the extra pay accumulator used for redundancy and retirement.

     Note: You will not see this until you save and refresh the form.

   • If necessary, select any other accumulators for which ESS is considered income — for example, Student Loan and Special Tax Code.
   • As the not taxed transaction type is only used for reporting, you don't need to select accumulators.
3. During pay entry, select the transaction type and enter the amount of the ESS payment on the Employer Costs tab.

   For the ESS - Taxed transaction type, Greentree calculates the tax using the tax codes set on HR Module Control > Payroll > Tax Config.

4. Process the pay.

The value of the ESS payment is included in the totals for Gross Earnings, Earnings not Liable for Earner Premium (ACC) and for ESS-Taxed, PAYE.

• Deductions from employee share scheme (ESS) benefits (IRD website)