Separating KiwiSaver employer contributions
ANSWER ID:33551
Some companies may wish to report their employer contributions separately, especially as Employer Superannuation Contributions Tax (ESCT) applies to all employer contributions and can reflect a significant cost to them and they may want to report on this additional expense separately for accounting purposes. This could also prove useful if you are already paying over and above the compulsory contribution.
This support note shows you how to:
- set up a new expense account in AccountRight
- set up a separate Department Code/Costcentre in Payroll
- assign the General Ledger Expense code to the KiwiSaver Pay Code in Payroll
This will allow your KiwiSaver employer expense to be recorded separately.
- Go to the Accounts command centre and click Accounts List.
- Click the Expense tab.
- Click New.
- Create an expense account code named KiwiSaver Employer Contributions.
- Click OK and then Close. See our example account in the Accounts List below.
- Go to the Maintenance command centre and click Maintain Departments.
- Click New.
- Create a Department Code called KIWIEC with the description KiwiSaver Employer Cont.
- Enter a Costcentre Description.
- For the General Ledger Expense Code, choose the account created earlier in this support note.
- Click Close. See our example below.
In order to view your accounts list through the drop down you must have set up your AccountRight and Payroll integration. For help, see Integrating Payroll with your accounting software.
- Go to the Maintenance command centre and click Maintain Pay Codes.
- Click to select the KIWI pay code.
- Click the Super tab.
- For the Default Department Code/Costcentre for Employer Super Contributions, select the Department Code/Costcentre created in the previous task in this support note. See our example below.
The journals that will now post to your AccountRight software will show the Employer Superannuation portion as highlighted in the following example.
