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Payslip YTD — KiwiSaver and ESCT (NZ only)

How the YTD KiwiSaver and ESCT fields on New Zealand payslips are calculated using the payment date of historical batches instead of the pay period end date.

Written by Alex McGowan

New Zealand payslip document formats in FastTrack360 can be configured to include the following year-to-date fields. To access document formats, click Maintenance, then click Document Formats.

YTD Employer KiwiSaver

Displays the year-to-date total of KiwiSaver employer contributions.

YTD Total ESCT

Displays the year-to-date total of Employer Superannuation Contribution Tax (ESCT).

KiwiSaver ESCT YTD

Displays the year-to-date ESCT amount within the KiwiSaver ESCT section of the payslip.

What's changed

Previously, the inclusion test for historical pay batches used the pay period end date of each historical batch to determine whether it fell within the current tax year window.

Where a pay period end date and payment date fell in different tax years, for example, where a pay period ended in March but the payment date fell in April, the batch was attributed to the tax year in which the pay period ended.

This could result in YTD figures that did not correctly reflect amounts attributable to the current New Zealand tax year under IRD's receipts-based approach.

Now, the inclusion test for all three YTD calculations uses the payment date of each historical batch. A historical batch is included in the YTD total only where its payment date falls within the current tax year window. The tax year window boundaries, which are already anchored to the payment date of the current batch, remain unchanged.


Benefits

This update ensures that the YTD Employer KiwiSaver, YTD Total ESCT, and KiwiSaver ESCT YTD fields on New Zealand payslips accurately reflect amounts attributable to the current New Zealand tax year in accordance with Inland Revenue Department (IRD) receipts-based attribution, under which the payment date governs tax year attribution.

Payees will see YTD figures that correctly correspond to amounts paid within the current tax year, regardless of when the underlying pay periods ended.

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