New Zealand Employee Pension Tax ESCT. The annual income (NZD) tax rate.
Many employers in New Zealand pay pensions to their employees, whether they are large enterprises, government agencies, international companies, Super, or KiwiSaver, which is most commonly paid by small and medium-sized enterprises for employees, and they are employers who bring "benefits" other than wages; Since it's welfare, a high-tax country like New Zealand won't give up the chance to tax any money that flows. Therefore, for the employer to provide employees with pensions, there will be "employee pension tax" this thing appears.
Employee pension tax, employees hear don't be afraid, this is the employer to pay for you, ESCT, full name Employer Superannuation Contribution Tax. However, the wool comes out of sheep, and the ESCT paid by the employer is actually a "withholding" for the Inland Revenue Department, that is, just as the employee's salary to pay PAYE is operated by the employer, the employee's annual pension, such as NZ$10,000, is certainly less than that amount, why? That's the employer subtracting ESCT for you.
ESCT is a tax rate that fluctuates and depends on the employee's income and how much time he has worked for the employer, mainly on the employee's annual income, and the New Zealand Taxation Office IRD provides threshold guidelines.
The annual income (NZD) tax rate for employees
$0-16,800 10.5%
$16,801 – $57,600 17.5%
$57,601 – $84,000 30%
$84,001 or more 33%
How is this "threshold" calculated? Let's give you an example.
Employee A, who earns NZ$40,000 a year, and employers also give Employee A 2% annual KiwiSaver support, or NZ$800. "Thus, the employee's ESCT is calculated at 40,000 plus 800 plus 40,800, then the tax rate is 17.50%." Of the $800 that the employer will have to pay for the employee, a 17.5% deduction will be required, i.e. the amount of KiwiSaver that the employee actually receives from the employer is 800 x (1-17.5%).
Employee pension tax, employees hear don't be afraid, this is the employer to pay for you, ESCT, full name Employer Superannuation Contribution Tax. However, the wool comes out of sheep, and the ESCT paid by the employer is actually a "withholding" for the Inland Revenue Department, that is, just as the employee's salary to pay PAYE is operated by the employer, the employee's annual pension, such as NZ$10,000, is certainly less than that amount, why? That's the employer subtracting ESCT for you.
ESCT is a tax rate that fluctuates and depends on the employee's income and how much time he has worked for the employer, mainly on the employee's annual income, and the New Zealand Taxation Office IRD provides threshold guidelines.
The annual income (NZD) tax rate for employees
$0-16,800 10.5%
$16,801 – $57,600 17.5%
$57,601 – $84,000 30%
$84,001 or more 33%
How is this "threshold" calculated? Let's give you an example.
Employee A, who earns NZ$40,000 a year, and employers also give Employee A 2% annual KiwiSaver support, or NZ$800. "Thus, the employee's ESCT is calculated at 40,000 plus 800 plus 40,800, then the tax rate is 17.50%." Of the $800 that the employer will have to pay for the employee, a 17.5% deduction will be required, i.e. the amount of KiwiSaver that the employee actually receives from the employer is 800 x (1-17.5%).
