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Employer superannuation contribution tax (ESCT) is deducted from your employer contributions to your employees' KiwiSaver or complying funds.

You need to work out the ESCT rate for each employee. The rate depends on how much your employee earns and how long they’ve worked for you.

It is recommended the ESCT rate for each employee is reviewed at the start of each financial year. 

Set up employee ESCT rate

New employees 

When a new employee is added, their ESCT rate is set to 10.5%. This should be reviewed and set manually for the financial year. To determine their ESCT see the IR tool here.

Moving forward the ESCT rate should be reviewed at the start of each financial year. We recommend changing them to dynamic at the start of the next financial year to automate the annual review.

Existing employees

If the employee worked in the previous financial year, we recommend using the dynamic ESCT calculation. This will review and automatically set the ESCT rate based on the previous financial year earnings.

To manually set up an employee's ESCT rate calculation
  1. From the front screen click Employee > Modify Employee Details > KiwiSaver.

  2. Click the Employer Contribution Tax rate.



  3. Select the desired rate, then click Go.



As shown above, you'll see dynamically shown at the top of the screen if the ESCT is set up manually.

To set up an employee's ESCT rate to calculate dynamically
  1. From the front screen click Employee > Modify Employee Details > KiwiSaver.

  2. Click the Employer Contribution Tax rate.



  3. Click dynamically then click Go.

As shown above, you'll see set it yourself shown at the top of the screen if the ESCT is set up as dynamic.