Summary

The Employees | Superannuation tab | ESCT rate field stores the ESCT rate at employee level. The "ESCT" option in the Allowances | Details (i) tab | Tax override type field allows PayGlobal to use this ESCT rate.

The Tax override type field is enabled when the Details (i) tab | Tax override = "Yes". Superannuation allowances use "ESCT" or (Blank).

• The "ESCT" option allows you to use one superannuation allowance for employer contributions to all employees in that superannuation fund, and for salary sacrifice contributions (recommended).
• If the allowance has Tax override type = (Blank), then the Tax overrides tab | Override type field is enabled on the Transaction View allowance form.

Override amount

If you select Tax override type = "ESCT", then Override amount defaults to 0.00. You would normally leave this value unchanged. When PayGlobal calculates ESCT for this type of superannuation allowance transaction, it uses the following hierarchy to determine an employee's ESCT rate:

• Tax override rate in the Allowances record or entered at transaction level.
• Employee's Superannuation tab | ESCT rate (recommended).

Transaction View forms

In Transaction View, you can also select Tax overrides tab | Override type = "ESCT" on the transaction form for Z-type allowances with Tax override = "Yes".

Note: The Tax overrides tab is displayed on the transaction form only if the allowance has Paying = "No" and Tax override = "Yes".

See also

ESCT (NZ)

NZ Superannuation and Salary Sacrifice Manual (download from website)