What is ESCT?

Employer Superannuation Contribution Tax (ESCT) (definition)

Employer contributions made to an employee’s KiwiSaver or a complying fund are subject to Employer Superannuation Contribution Tax (ESCT). The ESCT needs to be calculated for each employee, based on their earnings and how long they’ve worked for your company.

ESCT Threshold Amount

ESCT Rate

$0 - $16,800

10.5%

$16,801 - $57,600

17.5%

$57,601 - $84,000

30%

$84,001 - $216,000

33%

$216,001 and above

39%

PayHero payroll software will attempt to calculate the ESCT rate for new employees, plus the first pay processed on or after April 1st will trigger a recalculation of the employee's ESCT rate for the following year.


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