New Zealand Accounting Set Up - System Option

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Category Configuration

Type Must be Global 

• Schedular – Tax withheld for subcontractors. When preparing payroll, this should be put in the deductions section. It will not be allowed for employees.
• Child Support – The government sends notification of Child Support to be withheld. When preparing payroll, this should be put in the deductions section.
• KiwiSaver – This is a retirement saving program. Employees can choose a contribution rate of 2%, 4% or 8% of their gross salary or wages. The implementation will be shown in the Prepare Payroll section.

Other necessary settings are:

• ESCT Calc Method –(Employer superannuation contribution tax) Choose one of the following two options:

o   Deduct from Employer Contribution – This is the pre-2012 method which simply reduced the amount going to the employee’s savings by the amount of the tax.

o   Add to Employer Contribution – Starting in 2012, the employer can opt to “add the ESCT on top of employer cash contributions. Gross-up the employer cash contribution and ESCT to work out how much ESCT to pay.”

• Default KiwiSaver Fund – Each employee can nominate which fund they want to handle their account. This simply provides the default fund. Click the ellipses key to select a fund from the supplier file.
• KiwiSaver Employer Contribution Expense – Depending on whether or not a valid account code is supplied, then HR will post A/P for KiwiSaver.

• Default Employer Percent – This simply supplies HR with a default percentage when the KiwiSaver Employer Contribution Percent Individual Worker Setup