Employing staff Dates
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.
Include an employee’s ESS benefits along with their other earnings if you file using the on-screen entry in myIR, by paper, or with some payroll packages (check with your payroll provider). You need to show:
- the employee's name and IRD number
- the taxable value of the ESS benefit (in the ESS field), also include this as Earnings not liable for ACC earners’ levy
- the total tax, and any student loan or child support, deducted from the benefit.
If your payroll package does not currently let you do this, then you need to show an employee’s ESS benefits separately from any other earnings the employee receives. Add a separate entry in your employment information showing the:
- employee’s name and IRD number
- tax code ESS
- taxable value of the ESS benefit (as gross earnings) – also include this as Earnings not liable for ACC earners’ levy
- 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
- employee's 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:
File information within 10 working days of: