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ESCT On Voluntary Employer KiwiSaver Contributions

  • From 1 April 2009 employers must pay Employer Superannuation Contribution Tax (ESCT) on all voluntary employer contributions.

  • If you contribute more than 2% as an Employer Contribution, then ESCT needs to be paid.

  • Ace Payroll fully automates this giving you two options for how ESCT is handled.

  • ESCT is then automatically included on your PAYE return.



  • From the Employee / Modify Employee Details part of Ace Payroll, click the KiwiSaver tab.

  • The ESCT features automatically activate when you change the Employer Contribution Rate to more than 2%.



  • The ESCT Rate defaults to 33% for earnings of $57,601 upwards.

  • You can select a different rate if required.



  • Select whether the employer pays the ESCT on top of their voluntary contribution, or whether it is deducted from their voluntary contribution.

  • In simple terms, with ESCT Inclusive chosen, if your voluntary contribution is an extra 2% to KiwiSaver, then the contribution plus the ESCT adds up to 2%. The employee actually receives less than the 2% voluntary contribution due to the ESCT.

  • With Plus ESCT chosen, if your voluntary contribution is an extra 2% to KiwiSaver, then the contribution plus the ESCT adds up to more than 2%. The employer actually pays more than the 2% voluntary contribution due to the ESCT.



  • With these decisions made, Ace Payroll automatically handles ESCT each pay period.

  • When you do your PAYE, ESCT is included as part of the PAYE on the IR345.

  • Note that ESCT does not appear on the IR348, just the IR345.

More KiwiSaver Information

  KiwiSaver Overview   KiwiSaver Employee Tax Credit
  KiwiSaver Employee Setup   KiwiSaver Contributions Report
  KiwiSaver Pay Calculation   KiwiSaver Reversals and Refunds
  KiwiSaver Automatic Enrolment   KiwiSaver Company Setup
  KiwiSaver Exempt Employees   KiwiSaver Scheme Providers
  KiwiSaver Contribution Rates   KiwiSaver Salary Sacrifice
  KiwiSaver Opting Out   KiwiSaver Exempt Schemes
  KiwiSaver Opting In   Frequently Asked Questions
  KiwiSaver Contributions Holiday   KiwiSaver 2009 Changes
  KiwiSaver Employer Contributions   KiwiSaver 2008 Changes
  KiwiSaver Employer Tax Credit   ESCT on Employer Contributions
  Alphabetical Index FAQ Questions FAQ Contents Back to top
Download IRD KiwiSaver Forms (PDF)
  KS1 KiwiSaver Employee Details   KS3 KiwiSaver Employer Guide   KS6 Contributions Holiday   KS11 Intro Leaflet
  KS2 KiwiSaver Employee Deductions   KS4 Employer Guide   KS10 Opt-Out Form  
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Published: 2nd October 2009 		Back to top