Changes made in the Budget 2012 will come into affect 1 April 2013
The minimum contribution rate for employers and employees increases from 2% to 3% of gross salary or wages from the first pay period commencing on or after 1 April 2013.
Changes made in the May Budget 2011 will come into affect April 2012
Government contribution to half contributing 50c for every $1 contributed by individual, to a maximum of $521.43 per year
Employers contribution to be taxed at a rate equal to the individuals marginal tax rate. From the 1st April 2012 employers contribution will no longer be exempt from ESCT (Employer Superannuation Contribution Tax).
This will not cost the employer any more. The tax amount will be deducted from their Kiwisaver contribution.
This calculation is done once a year on 1 April, and is based on gross earnings for the previous 12 months.The calculation for Kiwisaver does not include the rent (accommodation or board) portion of gross taxable earnings.
Keep a record of all calculations. Inland Revenue Department may query the rate being used. The first return under this regime will be for the period 1 – 30 April 2012, due for filing and payment with Inland Revenue Department on 20 May 2012.
The Employer Monthly Schedule (EMS/IR348) will have an additional box (8) to record the ESCT amount for each employee.
The Employer Deduction Schedule (EDF/IR345) will record this in box 8
https://interact1.ird.govt.nz/forms/payecalculator/ PAYE/Kiwisaver calculator (make sure you select the correct income tax year)
Budget May 2011 affects KiwiSaver.. more
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