Employee Super Funds - Allowances (New Zealand)

Overview

The Allowances tab allows you to personalise employer contributions. When a superannuation payroll rule generates an Employee Super Funds allowance in Transaction View, it uses the Employee Super Funds | Allowances tab field values to determine the transaction rate. However, payroll rules cannot generate transactions for an allowance if the relevant Employee Super Funds | Allowances tab field is empty or no corresponding allowance code is specified in the associated Superannuation Fund | Allowances tab.

Important: If any of these fields do not have an allowance code specified in the associated Superannuation Fund | Allowances tab, then that field is disabled.

Fields

Employer (%):

Value of the employer’s percentage contribution. If you copy across defaults, then the Employer (%) value is copied from the Superannuation Fund record.

Important: This Employer (%) value overrides the Superannuation Fund | Allowances tab | Employer (%) value. If the Employer (%) value in the Employee Super Fund is zero or blank, then the payroll rule will not generate any employer allowance transactions.

Employer ($):

Value of the employer’s fixed contribution.

Top up ESCT (%):

Top up ESCT ($):

You can use these Yes/No fields to top up employer superannuation contributions to counter the ESCT deducted. These fields are enabled only when the associated Employer (%) or Employer ($) field contains a non-zero, non-blank value.

Note: If you copy across defaults, then the Top up ESCT (%) value is copied from the Superannuation Fund record. See Superannuation Fund - Allowances (New Zealand)

From 01/04/2012, all employer contributions to an employee's KiwiSaver scheme or complying fund are liable for Employer Superannuation Contribution Tax (ESCT). The ESCT exemption on the first 2% of employer contributions no longer applies. Employers may decide to top up their contributions so employees still receive 2% after ESCT is deducted. Alternatively, employment agreements may require the employer to top up their contributions.

If you select "Yes", pay processing will automatically top up the employer contribution to counter the 2% ESCT deducted as closely as possible. However, the top-up calculation is based on whole dollar amounts so the topped up contribution may not be exactly the same as the original (pre-01/04/2012) contribution.

Note: You cannot top up employer contributions if the employee uses a salary sacrifice percentage (%) deduction.

Salary Sacrifice All (%):

Enter salary sacrifice as the percentage to be calculated on the employee's post-sacrifice taxable gross.

Note: The Allowances tab | Salary Sacrifice All (%) value should match the Deductions tab | Salary Sacrifice Ded (%) value.

Salary Sacrifice All ($):

Fixed amount of employee’s salary sacrifice.

Note: You should not use a mixture of percentage and dollar salary sacrifice values in an Employee Super Funds record. However, for non-KiwiSaver funds, you can use dollar values in one Employee Super Funds record and percentage values in another Employee Super Funds record for the same employee.