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Te kimi i te nuinga ESCT mō ia kaimahi Find the ESCT rate for each employee

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You need to work out the ESCT rate for each employee. Do this at the start of the tax year (1 April).

If an employee’s salary or wage changes during the tax year do not change the ESCT rate during the year. Change it at the start of the next tax year.

Work out employee's annual income

If the employee worked for you for the whole previous tax year

Add:

  • employee’s annual salary or wage for the previous tax year
  • your annual gross contributions to employee’s superannuation scheme for the previous tax year.

If the employee worked for you for part of the previous tax year

Add:

  • employee’s estimated annual salary or wage for the current tax year
  • your annual estimated gross contributions to employee’s superannuation scheme for the current tax year.

If the employee started working for you during the current tax year

To find the employee’s ESCT rate for the rest of the current tax year, add:

  • employee’s estimated salary or wage for the rest of the current tax year
  • your estimated gross contributions to employee’s superannuation scheme for the rest of the current tax year.

To find the employee’s ESCT rate at the beginning of the following tax year, add:

  • employee’s estimated annual salary or wage for the following tax year
  • your annual estimated gross contributions to employee’s superannuation scheme for the following tax year.

Find the ESCT rate

Employee’s annual income from step 1 ESCT rate from 1 April
$0 to $16,800 10.5%
$16,801 to $57,600 17.5%
$57,601 to $84,000 30%
$84,001+ 33%

If the employee has a secondary job

Each employer needs to work out the ESCT rate for each employee. You do not need to know how much an employee earns in other jobs.

If the employment agreement is locked-in

Use this formula to work out the ESCT if you and your employee are locked into an employment agreement where you contribute a set percentage of their salary or wage to their superannuation scheme.

ESCT = a ÷ (1 - a) x b

a = ESCT rate

b = employer contribution

The Employer’s guide - IR335 has examples of how to find the ESCT rate in different situations.

Employer's guide IR335 (PDF 361KB) Download form