Skip to main content

Budget 2024 | The Government has announced proposed changes to personal income tax, the independent earner tax credit, in-work tax credit, the minimum family tax credit and the interest rate charged for overseas based student loans. They have also provided more information on FamilyBoost. Find out more: www.budget.govt.nz

You and your employee can agree to treating your employer contributions as part of their gross salary or wage.

You pay your employer contributions to the superannuation scheme not your employee.

Your employer contributions are taxed under the PAYE rules.

At any time your employee can ask you to end this agreement and deduct ESCT from each employer contribution instead.

Before you start

Make sure your employee understands that their increased gross salary or wage will affect any:

  • Working for Families payments
  • Child support payments
  • independent earner tax credits
  • student loan repayments.

Work out the value of your employer contribution

Your employer contribution is added to your employee’s gross salary or wage for the pay period. It is taxed using the PAYE rules based on your employee’s current tax code.

Pay the contribution to the superannuation fund

You can either:

  • pay the gross amount to the superannuation fund and deduct PAYE on your employee’s gross salary or wage
  • pay the net amount to the superannuation fund after deducting the income tax component of PAYE.
Last updated: 07 Oct 2020
Jump back to the top of the page