ESCT (Employer superannuation contribution tax) is the tax paid on cash contributions to an employee’s Super scheme.
For KiwiSaver, this means you pay ESCT on the employers contribution. The employers contribution is from 3%.
Employers don't need to pay ESCT if the employee and employers agree that the employers contribution is in their salary/wages. This must be stated in the employee's contract.
The ESCT rate needs to be updated in your Payroll at the beginning of each tax year- not part way through. Some Payroll systems do this automactically such as iPayroll and PayHero. If you are a Xero Payroll user you will need to update this manually.
