Some companies may wish to report their employer contributions separately, especially as Employer Superannuation Contributions Tax (ESCT) applies to all employer contributions and can reflect a significant cost to them and they may want to report on this additional expense separately for accounting purposes. This could also prove useful if you are already paying over and above the compulsory contribution.
This support note shows you how to:
set up a new expense account in AccountRight
set up a separate Department Code/Costcentre in Payroll
assign the General Ledger Expense code to the KiwiSaver Pay Code in Payroll
This will allow your KiwiSaver employer expense to be recorded separately.
1. Set up a new expense account in AccountRight
Go to the Accounts command centre and click Accounts List.
Click the Expense tab.
Click New.
Create an expense account code named KiwiSaverEmployer Contributions.
Click OK and then Close. See our example account in the Accounts List below.
2. Set up a separate Department Code/Costcentre in Payroll
Go to the Maintenance command centre and click Maintain Departments.
Click New.
Create a Department Code called KIWIEC with the description KiwiSaverEmployer Cont.
Enter a Costcentre Description.
For the General Ledger Expense Code, choose the account created earlier in this support note.
3. Assign the General Ledger Expense code to the KiwiSaver pay code in Payroll
Go to the Maintenance command centre and click Maintain Pay Codes.
Click to select the KIWI pay code.
Click the Super tab.
For the Default Department Code/Costcentre for Employer Super Contributions, select the Department Code/Costcentre created in the previous task in this support note. See our example below.
The journals that will now post to your AccountRight software will show the Employer Superannuation portion as highlighted in the following example.
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