Skip to main content

2023 Income tax assessments | From now until the end of July we’re issuing income tax assessments. Most people will receive theirs by 10 June. Timelines at the end of the tax year.

Inland Revenue Inland Revenue
  • About us
    • About us
    • IR careers
  • News
    • Media releases
    • Updates
    • Subscribe
    • Seminars
  • Related Websites
    • Tax Technical
    • Tax Policy
    • International
  • Contact us
    • Contact us
    • Media queries
    • Tax Technical queries
    • Tax Policy queries
  • English
Register myIR login
myIR login
Individuals and families Ngā tāngata me ngā whānau
  • IRD numbers Ngā tau IRD
  • Income tax for individuals Te tāke moni whiwhi mō ngā tāngata takitahi
  • File my individual tax return Te tuku i tētahi puka tāke takitahi
  • Support for families Ngā tautoko i ngā whānau
  • KiwiSaver Poua he Oranga
  • Student loans Student loans
  • Self-employed Mahi ā-kiri
  • More... Tāpiri atu…
Business and organisations Ngā pakihi me ngā whakahaere
  • Income tax Tāke moni whiwhi mō ngā pakihi
  • Employing staff Te tuku mahi ki ngā kaimahi
  • KiwiSaver for employers Te KiwiSaver mō ngā kaituku mahi
  • Goods and services tax (GST) Tāke mō ngā rawa me ngā ratonga
  • Non-profits and charities Ngā umanga kore-huamoni me ngā umanga aroha
  • International Tāwāhi
  • More... Tāpiri atu…
Intermediaries and others Ngā takawaenga me ētahi atu
  • Tax agents Ngā māngai tāke
  • Bookkeepers Te kaikaute
  • PAYE intermediaries Ngā takawaenga PAYE
  • Payroll bureaus Ngā tari utu ā-rārangi
  • Digital service providers Ngā kaiwhakarato pūmanawa rorohiko
  • More... Tāpiri atu…
About us
  • About us
  • IR careers
News
  • Media releases
  • Updates
  • Subscribe
  • Seminars
Related Websites
  • Tax Technical
  • Tax Policy
  • International
Contact us
  • Contact us
  • Media queries
  • Tax Technical queries
  • Tax Policy queries
English
Register
myIR login
Inland Revenue
Home
Individuals and families Ngā tāngata me ngā whānau
Popular pages Ngā wharangi rongonui
Cost of Living Payment Utu mō te utu oranga IRD numbers Ngā tau IRD File my individual tax return Te tuku i tētahi puka tāke takitahi Support for families Ngā tautoko i ngā whānau Managing my tax Te whakahaere i taku tāke
More individuals and families
Familes Ngā whānau
Working for Families Working for families Child support Te tautoko tamariki Paid parental leave Te utu tiaki pēpi
Property and Trusts Ngā wharangi rongonui
Trusts and estates Ngā rōpū kaitiaki me ngā rawa tuku iho Property Ngā rawa
Individuals Ngā tāngata
Income tax for individuals Te tāke moni whiwhi mō ngā tāngata takitahi Non-residents Ngā kainoho-tāwāhi Self-employed Mahi ā-kiri Kiwisaver for individuals Kiwisaver mā te tangata takitahi Student loans Ngā pūtea taurewa ākonga Cryptoassets for individuals Ngā rawa whiti-rangi mā te tangata takitahi Unclaimed money
Situations Ngā āhuatanga
I am going overseas Kei te haere ahau ki tāwāhi I received an income tax assessment I whiwhi i ahau tētahi aromatawai tāke moni whiwhi I'm struggling to file and pay my tax
More situations
Business and organisations Ngā pakihi me ngā whakahaere
Popular pages Ngā wharangi rongonui
Covid-19 Businesses and organisations KOWHEORI-19 Ngā pakihi me ngā whakahaere File a companies income tax return - IR4 Te tuku i tētahi puka tāke moni whiwhi kamupene - IR4 Not-for-profits and charities PAYE calculator to work out salary and wage deductions Property Ngā rawa IRD numbers Ngā tau IRD
More business and organisations
Income tax Te tāke moni whiwhi
Types of business income Ngā momo moni whiwhi pakihi Tax rates for businesses Ngā pāpātanga tāke mō te pakihi Balance dates Ngā rā mutunga tau pūtea
GST Tāke hokohoko (GST)
Charging GST Te uta i te tāke hokohoko Claiming GST Te kerēme tāke hokohoko
Employing staff Te tuku mahi ki ngā kaimahi
Register as an employer Te rēhita hei kaituku mahi Paying staff Utu kaimahi Payday filing Te tāpaetanga rā utu Deductions from income Ngā tangohanga mai i ngā moni whiwhi Kiwisaver for employers Te KiwiSaver mō ngā kaituku mahi
International Tāwāhi
International tax for business Te tāke aowhānui mō ngā pakihi
Situations Ngā āhuatanga
I am starting a new business Kei te tīmata au i tētahi pakihi hou I am going to employ someone Kei te tuku mahi ahau ki tētahi tangata My business is making a loss Kei te hapa taku pakihi
More situations
Intermediaries and others Ngā takawaenga me ētahi atu
Intermediaries Ngā takawaenga
Becoming an intermediary Te tū hei takawaenga Getting authority to act Te whiwhi whakamanatanga Executive office holders Ngā kaipupuri tūnga whakahaere Linking client accounts Te honohono pūkete kiritaki Nominated person Te tangata kua whakaingoatia Tax pooling Te whakarōpū tāke Gateway services
More intermediaries and others
Tax agents Ngā māngai tāke
Agents answers Ngā Whakautu Māngai Tax agent status Te tūnga māngai tāke Extension of time arrangements Te whakaroa i ngā whakaritenga wā Managing consolidated groups Te whakahaere rōpū tōpū Income tax for individual clients of tax agents Te tāke moni whiwhi mā ngā kiritaki takitahi a ngā takawaenga News updates for tax agents
More tax agents
Digital service providers Ngā kaiwhakarato ratonga matihiko
Getting started guide About the developer portal Mō te tomokanga kaiwhakawhanake Gateway services architecture Te hanganga ratonga tomokanga Services catalogue Te putumōhio ratonga
More digital service providers
Roles Ngā tūranga
Tax agents Ngā māngai tāke Bookkeepers Ngā kaikaute PAYE intermediaries Ngā takawaenga PAYE Payroll bureaus Ngā tari ripanga utu kaimahi Other representatives Ētahi atu māngai
Search tips

Tāke takoha whakatātanga kaitukumahi Employer superannuation contribution tax

Employing staff
Employing staff
  • Deductions from income
    • Employer superannuation contribution tax (ESCT)
      • Deduct ESCT under the PAYE rules
      • Video Employer superannuation contribution tax ESCT
      • Deduct ESCT from each employer contribution
Employer superannuation contribution tax Video information

Audio and visual transcript

Scene 1

Visual

Title screen with IR logo and Changing for You logo shows on teal background.

Audio

Soft music plays in the background throughout the video.

Scene 2

Visual

Teal background with Jennie appearing with Kiwisaver, ESCT, 3% and other schemes appearing in circles

Audio

Are you an employer? If you make contributions to an employee’s KiwiSaver account, you’ll need to pay employer superannuation contribution tax (ESCT). ESCT is a tax deducted from the employer contributions you pay into the employee’s KiwiSaver account.

Employer contributions are compulsory, and the minimum amount you need to pay is 3% of the employee’s gross salary or wage.

You pay ESCT to Inland Revenue along with your PAYE and other employer deductions.

ESCT is also paid on employer contributions to superannuation schemes other than KiwiSaver. Inland Revenue’s website has more information about these other schemes.

Scene 3

Visual

Zoom out from Jennie, header of Salon Jennies with employees standing next to Jennie, Date 01 April appears in top right

Audio

Jennie owns a busy hairdressing salon in town. All four of her employees belong to KiwiSaver.

At the beginning of the tax year, Jennie works out the ESCT rate for each of her employees.

Scene 4

Visual

Zoom onto Daniel, Customer in salon chair next to Daniel appears, Year calendar appears in Top right

Audio

She starts with senior stylist Daniel.

Last year, Daniel worked at the salon for the full 12 months. That means Jennie can use his last year’s salary to work out his ESCT rate for the coming year.

Scene 5

Visual

Table with all Employees and their salary Bracket and ESCT rate appears

Audio

Here’s the table of ESCT rates.

Scene 6

Visual

Table minimises to bottom left; Daniel appears top left with Salary, KiwiSaver contributions percentage and total appearing on right side of screen.

Audio

Daniel’s salary for last year was $65,000. Jennie’s 3% KiwiSaver employer contribution of $1,950 added to his salary gives a combined figure of $66,950,

Scene 7

Visual

Table with all Employees and their salary brackets and ESCT rate reappear from bottom left

Audio

making Daniel’s ESCT rate 30% of the employer contribution.

Scene 8

Visual

Slide up, Daniel with ESCT rate of 30% and calendar year appear. Gets replaced by www.ird.govt.nz

Audio

Jennie will use this rate for Daniel for the whole of the coming year.

If your employee wasn’t with you for all 12 months of the previous year, you work out the ESCT rate based on what you estimate or expect their salary and your contributions will be for the coming year.

Visit our website and use our tool to work out your employees ESCT rate.

Scene 9

Visual

All five employees slide into view along with their different salaries underneath them. Daniel becomes focus again with his Weekly Salary, Employer contributions, ESCT rate with corresponding figures appear.

Audio

Jennie has both full time and part time employees who earn different salaries. This means they each get their own ESCT rate.

Let’s see how Jennie calculates Daniel’s ESCT every payday.

Daniel’s salary for the week is $1,250. That means Jennie’s employer contribution is $37.50. ESCT is a tax on the employer contribution. For the purpose of calculating ESCT, you use whole dollars only. Jennie removes the cents and applies Daniel’s ESCT rate of 30%.

She must pay ESCT of $11.10.

Scene 10

Visual

Daniel disappears and leaves employer contribution and ESCT with added figure of Net employer contribution. Employer contribution disappears to leave ESCT and net contributions behind.

Audio

Jennie needs to calculate one more figure: the net employer contribution. That’s easy. All she does is deduct the ESCT from the employer contribution including the cents.

Jennie must include both figures in her employment information return.

Scene 11

Visual

Orange box with PAYE calculator and PAYE person symbols appear in front of background. Both symbols are replaced with a bigger calculator symbol with PAYE on it, then replaced with IRD website.

Audio

You don’t have to work out your ESCT manually. Why not do it the easy way? Here are two tools that can help you. Alternatively, a PAYE intermediary could also help you. To check these out, click on the links under the video.

You’ve just seen how most employers calculate their ESCT. There’s another method you can use, which taxes the employer contributions under the PAYE rules. Please visit our website for more information.

Scene 12

Visual

Saloon Jennie appears on left-hand side with the righthand side showing the weekly table with figures for employee, net employer contribution and ESCT along with a total. Table shifts left for a IR348 Employment Information symbol to take right side.

Audio

Meanwhile, back at the salon, Jennie has worked out ESCT for all her employees. Jennie takes the figures for each of her employees weekly pays and includes these in her employment information return. Remember the two figures she needs for her employment information return? The net employer contribution and ESCT.

ESCT is paid to Inland Revenue along with your PAYE by the due date.

Scene 13

Visual

IR384 Return appears with two circles over the total net employer contribution and ESCT in the respective boxes

Audio

She enters the total net employer contribution and ESCT in the respective boxes on the employment information return.

Scene 14

Visual

IR348 Employment Information symbol with green tick appear in the centre of the screen. Shifts up to show calendar symbol with due date in the centre, to be replaced with computer and mouse symbol in the same spot.

Audio

And that’s all there is to it!

Please remember to file and pay your ESCT and other employer deductions by the due date. Inland Revenue’s pay day filing service makes the job a whole lot easier. Check out the link under the video.

Scene 15

Visual

Arrow bullet points appear on screen with contact and information on where to go for ESCT services. Fades to be replaced with IRD and New Zealand government logos and web address for ESCT

Audio

Are you behind with your ESCT? Made a mistake? Phone us on 0800 377 772. Our friendly team can help you get back on track.

If you need more information, go to our website where you will find more information on ESCT and tools to work out your employees ESCT rate and how to calculate how much ESCT is required to be deducted from the employer contribution using the PAYE calculator.

Your tax agent or PAYE intermediary can also advise you about ESCT, and help you choose the calculation method that’s right for your business.

    Moving between Inland Revenue sites

    picto--truck

    Heads up. We're taking you to our old site, where the page you asked for still lives

    Continue to old site
    Last updated: 20 Sep 2021
    Jump back to the top of the page top
    Inland Revenue Inland Revenue

    FOLLOW US

    • Facebook
    • Twitter
    • Youtube
    • LinkedIn
    • Subscribe

    CONTACT US

    • Contact Information
      • Contact us
      • Media queries
      • Tax Policy enquiries
      • Tax Technical enquiries
    • About us
    • Careers
    • International

    SHARE THIS PAGE

    • Email this page
    • Linkedin
    • Facebook
    • Twitter

    SHARE THIS PAGE

    • About the site
    • Conditions of use
    • Privacy
    • Glossary
    • Accessibility
    • Copyright
    • MyIR Help
    © Copyright 2023 Inland Revenue
    New Zealand Government
    Shielded website