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Filing employment information about employee share scheme benefits

What you need to tell us

You need to file employment information about the taxable value of the ESS benefit to your employee, even if you chose not to deduct tax from the benefit.

You need to show an employees ESS benefits separately from any other earnings the employee receives. Add a separate entry in your employment information showing:

  • employees name and IRD number
  • the payment code “ESS”
  • the taxable value of the ESS benefit, also include this as “Earning not liable for ACC earners’ levy”
  • the total tax, and any student loan or child support, deducted from the benefit.

You do not file employment information about the ESS benefits when the:

  • employee or associate sells share rights to a non associated third party
  • share benefit arises from an exempt ESS, as this is exempt income.

When you need to tell us

You need to identify a ‘ESS deferral date’. This is 20 calendar days after the share scheme taxing date.

The share scheme taxing date is the earlier of the date when the:

  • benefits are cancelled
  • benefits are transferred to a non associated person
  • employees ownership of shares is no longer affected by the terms of their employment.

You can either file the information on a payday basis or twice a month.

Filing on a payday basis

You need to file the employment information within 2 working days of the ESS deferral date if filing electronically, or within 10 working days if filing by paper.

Filing twice a month

If the ESS deferral day is between the:

  • 1st and 15th of the month, treat the benefit as if the employee received it on the 15th of the month
  • 16th and end of the month, treat the benefit as if the employee received it on the last day of the month.

The date you file employment information about the ESS benefits depends on whether you file your usual payday information electronically or by paper.

File electronically File by paper

File information within 2 working days of:

  • the 15th of the month
  • the last day of the month

File information within 10 working days of:

  • the 15th of the month
  • the last day of the month