Superannuation Contributions (New Zealand only)
Superannuation contributions are calculated when superannuation contribution pay items are added to the pay calculation screen for each employee.
An example superannuation pay item has been defined. 'Superannuation' is an employee after tax contribution. If you make employer contributions to superannuation, create a pay item using the Superannuation one as a guide, except the benefit checkbox should be ticked, and you need to add a 'TaxCategory' miscellaneous property with a value of 'SSC'.
When you add the employer superannuation pay item to an employee's pay, Kwik-Pay will add an SSCWT pay item with the cash set to the amount of specified superannuation contributions withholding tax due.
KiwiSaver
With the advent of the KiwiSaver scheme, superannuation funds become eligible for tax exemption if the fund is KiwiSaver complying superannuation fund. From 1 July 2007, the calculation of SSCWT takes into account the tax exemption of complying superannuation funds. In order for the tax exemption to be calculated, you must add a 'KiwiSaverApproved' property to any superannuation pay item that is a KiwiSaver complying fund. Select View, Setup, Pay items from the main menu in Kwik-Pay and edit the superannuation pay item. In the Miscellaneous Properties area, add a new property and select KiwiSaverApproved from the drop down list of properties. Click ok to save the change.
See more information about KiwiSaver
SSCWT Rate
The default SSCWT rate that Kwik-Pay uses to calculate the SSCWT is less than the highest rate tax, so higher paid employees may be liable for additional tax when their tax is assessed. They have the option of having their superannuation taxed at a higher rate so they do not have an additional liability. You can enter an over-riding SSCWT rate in the employee details, tax conditions screen.
From 1 April 2003, lower paid employees have the option of having their superannuation taxed at a lower rate. The Calc button on the employee details, tax conditions screen will set the SSCWT rate for the employee to the employee's marginal tax rate based on their earnings in the last tax year. Please note that if you do not have complete records in Kwik-Pay of the employee's earnings in the last tax year, the SSCWT rate that Kwik-Pay calculates will be wrong, and you will need to enter the correct rate manually.