Livestock Office Superannuation/Kiwisaver

Transcription

1 Livestock Office Superannuation/Kiwisaver 4/05/2017 Contents Superannuation Pay Type... 2 NZ Kiwisaver... 4 Kiwisaver with ESCT... 4 Kiwisaver using Employee Tax Rate... 6 IR File and Superannuation Report... 7 Stopping Kiwisaver Employer Contributions... 8 Withdrawal Date... 8 Australian Superannuation... 9 Window Control Buttons... 9

2 Superannuation Pay Type Livestock Office main menu > Payroll > Pay Types > Add > Pay Type Superannuation > Ok Allows superannuation to be included on the payslip. There are different settings for NZ and Australia. Australia only fields are listed in Green. NZ only fields are listed in Blue. Figure 1: Kiwisaver Using ESCT Rate Field Pay Type Employee Contribution is Dollar Pre tax Description Inactive Description Up to 6 alpha-numeric characters. Unique code for the pay type. If ticked then the employee contribution is a fixed dollar figure else it is a percentage of Gross. If ticked employees contribution is deducted before tax. Up to 30 alpha-numeric characters. Description of allowance. Note: This is what prints on the payslip Tick to mark allowance as inactive. Inactive allowances cannot be used on payslips or tally sheet lines. Inactive allowances will not appear in pay type lookup screens when the ACTIVE Pay Types by Type filter is used. Continued Page 2 of 9

3 Field Employee Use Woti + Overtime (Aus only) Use Employee Tax (NZ only) NZ Approved Scheme (NZ only) Employer Contribution % Employer Tax % Reportable Super % Aus only) Employer Use Woti + Overtime (Aus only) Employer Contribution is Dollar No Threshold (Aus only) P&L expense G/L code Super Fund B/S G/L code Employer Tax G/L code Description In Australia add overtime to Woti for employees contribution calculation. Uses the Employee personal tax rate rather than an ESCT rate. Tick if an approved NZ super scheme eg KiwiSaver Needs to be ticked for details to be included on the IR Monthly Schedule for IRD. Can exclude non-approved pay types from the Superannuation Report. Numeric value up to 2 decimal places. The percentage of the employee s gross pay that the Employer contributes. Numeric value up to 2 decimal places. The percentage that the Employer s contribution will be taxed. Note: Use Employee Tax must not be ticked. Numeric value up to 2 decimal places. The percentage of the Employer Contribution that is additional to the compulsory contribution. Employer superannuation contributions that could have been received by the employee as income. An example of a reportable employer superannuation contribution is a contribution made on your behalf under a salary sacrifice arrangement. In Australia add overtime to Woti for employees contribution calculation. If ticked then the employers contribution is a flat $ value not a percentage. If not ticked will apply the Australian threshold test reduced by pay frequency before calculating the employer contribution. Balance Sheet debit code where deductions will be accrued. Balance Sheet credit code to accrue the nett super fund contribution (employee + employer - employer tax) Balance Sheet credit code to accrue the employer tax on contribution Enter the code or Double Click or F8 for a lookup. G/L fields are only enabled if the General Ledger optional module has been purchased. If G/L has been purchased, codes must be entered for Super Fund and Employer Tax. If the Expense code is not entered, then it will post to the employee P&L wages code. Page 3 of 9

4 NZ Kiwisaver For the current IRD information see: All employer superannuation cash contributions (employer contributions) paid to a superannuation fund, including KiwiSaver schemes and complying funds, for the benefit of an employee are liable for ESCT (employer's superannuation contribution tax). The exception to this is if the employee and employer have agreed to treat some or all of the employer contribution as salary or wages under the PAYE rules. Kiwisaver with ESCT ESCT is calculated at a rate based on the employee's total annual salary or wages plus gross employer contributions for the previous tax year (1 April to 31 March). When employees haven't worked for the employer for the full previous tax year, the rate is based on the employer's estimate of the employee's total salary or wages plus gross employer contributions they will receive in the tax year for which the ESCT is being calculated. Use the following table to work out the correct ESCT rate to use. Employee's salary or wage income for year ended 31 March (including gross superannuation employer contributions) ESCT from 1 April $0 to $16, % $16,801 to $57, % $57,601 to $84,000 30% $84,001 upwards 33% Note: You will need to set up a new superannuation pay type foe each different ESCT that you need. Page 4 of 9

5 Example: Figure 2: Kiwisaver with ESCT Standard Kiwisaver employee contributions are a % of the gross pay. Employee Contribution is Dollar is not ticked. Kiwisaver is taken after tax, so Pre tax is not ticked. NZ Approved Scheme is ticked to ensure the deductions show on the IR File, the IRD Monthly Schedule. Employer Contribution % in this example is set to 3%. Employer Contribution is Dollar is not ticked. Employer Tax % is set at 30% To use this pay type, enter a new Standing Transaction for this pay type on the employee. The Quantity is the employee s contribution percentage. In the example below, this is 3%. Figure 3: Employee Standing Transaction Line The employee s contribution, employer s contribution and ESCT will all be calculated automatically as lines are added to the payslip. The employee s contribution prints on the payslip in the after tax section under the PAYE, using the pay type description. The quantity on the pay slip line is printed beside the total eg ( 3.00 % Gross). The employer s contribution shows at the bottom of the pay slip. If Show Ytd Gross and Paye is ticked on Payslip Setup then the Ytd Employer Contribution will print in brackets. ESCT is calculated using the rate entered on the pay type. Page 5 of 9

6 Kiwisaver using Employee Tax Rate If the employer and employee agree, the amount of employer contribution can be treated as the employee's salary or wages and PAYE must be withheld. If employers agree, employees can choose to have all or part of the value of the employer's contribution included in their gross salary and wages and taxed at their personal tax rates. Employees must understand that classifying this amount as salary and wages will affect: their Working for Families Tax Credits their independent earner tax credit entitlements the amount of child support they pay, and their student loan repayments. However, they can change back at any time. The actual employer contribution is paid into the superannuation fund - the employee doesn't receive the contribution in the hand. The value of the employer contribution will be added to the employee's gross wages for the pay period and taxed at the appropriate rate using the PAYE tables. The rate will depend on the employee's tax code. Contributions treated as salary and wages are subject to earner's levy (ACC). Example: Figure 4: Kiwisaver Using Employee Tax Rate Standard Kiwisaver employee contributions are a % of the gross pay. Employee Contribution is Dollar is not ticked. Kiwisaver is taken after tax, so Pre tax is not ticked. Use Employee Tax is ticked. NZ Approved Scheme is ticked to ensure the deductions show on the IR File, the IRD Monthly Schedule. Employer Contribution % in this example is set to 3%. Employer Contribution is Dollar is not ticked. Employer Tax % is not set. Page 6 of 9

7 To use this pay type, enter a new Standing Transaction for this pay type on the employee. The Quantity is the employee s contribution percentage. In the example below, this is 3%. Figure 5: Employee Standing Transaciton Line The employee s contribution, employer s contribution and ESCT will all be calculated automatically as lines are added to the payslip. The employee s contribution prints on the payslip in the after tax section under the PAYE, using the pay type description. The quantity on the pay slip line is printed beside the total eg ( 3.00 % Gross). The employer s contribution shows at the bottom of the pay slip. If Show Ytd Gross and Paye is ticked on Payslip Setup then the Ytd Employer Contribution will print in brackets. ESCT is calculated using the Employees tax rate. IR File and Superannuation Report Superannuation is paid to the IRD via the Employer Monthly Schedule. This information will print on the IR File report and will add the appropriate columns to the electronic copy of the file. The Superannuation Report from the Reports menu will list all contributions from employers and employees for each fund for a given date range. Page 7 of 9

8 Stopping Kiwisaver Employer Contributions Employers are required to contribute to their employee's KiwiSaver account or complying fund at 3% of the employee s gross salary or wage. You need to make contributions if your employee: is having KiwiSaver or complying fund member contributions deducted from their salary or wages, and is aged 18 and over, and has not reached the age of eligibility for New Zealand Super (currently 65), or has not been a member of a KiwiSaver scheme or complying fund for five years, whichever date is later, and is not a member of a defined benefit scheme. 3% is the minimum contribution rate from 1 April Withdrawal Date Employees become eligible to withdraw all or part of their savings when they reach the age to qualify for NZ Super (currently 65) as long as they've been a KiwiSaver member for a minimum of 5 years. The date employees become eligible to withdraw savings is known as their withdrawal date. Employees are no longer required to make contributions to KiwiSaver after their withdrawal date but can continue to make contributions if they wish. If employees decide to stop making contributions, they must complete a Non-deduction notice (KS51) and give it to their employer. Setup for Employees who wish to Continue to make Kiwisaver Contributions 1. You will need to set up a new pay type where the Employer Contribution Percentage is zero. Example: Figure 6: Kiwisaver with no Employer Contribution 2. Replace the current Standing Transaction line on the employee with a new one using this pay type. The quantity is the employee s contribution percentage, ie. 3, 4 or 8. Page 8 of 9

9 Australian Superannuation To enter the minimum super payments on a payslip, put the superannuation pay type code on a payslip or standing transaction with no Quantity. On the last payslip of a month the employer s monthly contribution to super will show on the payslip. Livestock Office checks on a pay by pay basis as to whether the employer contribution applies. It multiplies the employee pay up to see what a monthly pay would be, and if a pay is under $450 per month, it doesn t do a contribution. To avoid the $450, add a tick to the No Threshold box on the pay type setup screen so it always contributes. Should an employee wish to pay extra super (over the minimum requirement), enter the extra amount as the Quantity on the payslip or standing transaction line. Window Control Buttons Figure 7: Window Control Buttons Button Save Save Exit Save & Add Details Analysis Delete Exit / Exit No Save Description Saves the current record. Saves and closes the current window. Saves and opens an empty ADD window. Opens a list of payslip lines using this pay type. Double click on the line to open the payslip screen. Useful for Search and Report functions. Not applicable for pay types Deletes the current pay type. Pay Types can only be deleted if they have not been used on a payslip line. Use the Inactive checkbox to deactivate used pay types. Close the window. Go to: First / Previous / Next / Last record. Page 9 of 9