Rate Band Estimation
Employed Full Year
If the employee has been employed for all of the tax year immediately before the tax year in which the superannuation is paid, the rate band is
the total salary and wages paid in the previous tax year, including the gross amount of the employer KiwiSaver contribution before ESCT is deducted.
For employees that have not been employed for all of the previous financial year, the threshold is the total amount of salary and wages, inclusing he gross amount
of employer KiwiSaver contributions, that the employer estimates will be paid in the current year.
- For employees that were employed for the full previous financial year, Ace Payroll uses the full year figures.
For newer employees Ace Payroll uses an average of the pay history available.
- For a brand new employee, Ace Payroll uses the current pay for estimation purposes.
There are only four rate bands, with the vast majority of employees falling within the very wide 17.5% band - annual earnings between $16,800 and $57,600 a year.
A specific rate band is easily "locked in" if required as shown above.