Employer superannuation Inland Revenue should obtain ESCT Employers, accounting and payroll software providers supported this contribution tax (ESCT) information at an individual employee proposal. One submitter expressed the view that it should only occur if Inland Revenue uses the data to refund ESCT when employees opt out. Information about the amount of ESCT paid by the employer is support this and it will aid reconciliation.” (Software provider) “Fully currently provided at an aggregate level which shows strongly support the proposal that ESCT reporting is done at employee “We the total paid by the employer level.” (Accounting firm) for the month. please. Very much in favour of this. It is always calculated on a per “Yes Aggregate reporting employee per pay basis any way.” (Software provider) complicates correction and precludes Inland Revenue from an employee opts out the KiwiSaver contributions are refunded but as the “If IRD do not have ESCT details at an individual employee level, they do not proactively refunding ESCT for example, when an employee refund ESCT unless specifically requested. It would be useful if this problem opts out of KiwiSaver. is rectified as part of this proposal”. (Interest group)
Employer superannuation contribution tax (ESCT) Information about the amount of ESCT paid by the employer is currently provided at an aggregate level which shows the total paid by the employer for the month. Aggregate reporting complicates correction and precludes Inland Revenue from proactively refunding ESCT for example, when an employee opts out of KiwiSaver. Inland Revenue should obtain ESCT information at an individual employee Employers, accounting and payroll software providers supported this proposal. One submitter expressed the view that it should only occur if Inland Revenue uses the data to refund ESCT when employees opt out. “Fully support this and it will aid reconciliation.” (Software provider) “We strongly support the proposal that ESCT reporting is done at employee level.” (Accounting firm) “Yes please. Very much in favour of this. It is always calculated on a per employee per pay basis any way.” (Software provider) “If an employee opts out the KiwiSaver contributions are refunded but as the IRD do not have ESCT details at an individual employee level, they do not refund ESCT unless specifically requested. It would be useful if this problem is rectified as part of this proposal”. (Interest group)
2018-other-mts-cabinet-papers-3-2-paye-feedback.docx