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Pay As You Earn (PAYE)



Employers are required to make PAYE tax deductions from employee remuneration and ESCT deductions from any employer superannuation contribution made to a superannuation fund.

From 1 April 2012, employer contributions made to Kiwisaver scheme or an employee superannuation scheme with similar lock – in requirements are not exempt from ESCT.

An employer must now withhold ESCT on contributions it makes to a superannuation fund on behalf of an employee.

The rates of ESCT are 10.5%, 17.5%,30% or 33% (depending on the employee’s marginal tax rate).