Question:

We have two employees in New Zealand.

For one employee transferred from Australia to New Zealand full time

The company pays 2% kiwi Saver for this employee

The company pays 7% super for this employee in his Australian Super Fund. The monies are from the company’s New Zealand bank account paid quarterly into his as mentioned Australian super fund. (it is a choice of fund- personal fund)

This arrangement is due to prior receiving 9% super in Australia and when employed in NZ only received 2% so the company started this arrangement.

My question is, shouldn’t this be captured somewhere? NZ  for extra company super?

 

Answer:

 

My view of this situation:

 

·         The employer contribution to the employees Australian Super scheme is not a employer contribution under NZ law because the Australian super scheme is not registers under the Superannuation Schemes Act 1989.

·         The payment is a benefit to the employee so it is subject to tax.

·         What I suggest to ensure it is not part of their gross earnings in regard to Holiday Act is to call it an incentive payment and state it is discretionary payment.

·         Tax it normally as part of their pay.