Employee Share Scheme

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

To set up Greentree Desktop 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 Desktop 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. When you enter pay, select the transaction type and enter the amount of the ESS payment on the Employer Costs tab.

   For the ESS - Taxed transaction type, Greentree Desktop calculates the tax using the tax codes set on the Tax Config sub tab on the Payroll tab of the HR Module Control form.

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)