SAP ABAP Data Element PNZ_SUPWT (Superannuation Tax Method)
Hierarchy
☛ SAP_HRCNZ (Software Component) Sub component SAP_HRCNZ of SAP_HR
   ⤷ PY-NZ (Application Component) New Zealand
     ⤷ PC43 (Package) HR accounting: New Zealand
Basic Data
Data Element PNZ_SUPWT
Short Description Superannuation Tax Method  
Data Type
Category of Dictionary Type D   Domain
Type of Object Referenced     No Information
Domain / Name of Reference Type PNZ_SUPWT    
Data Type CHAR   Character String 
Length 12    
Decimal Places 0    
Output Length 12    
Value Table      
Further Characteristics
Search Help: Name    
Search Help: Parameters    
Parameter ID   
Default Component name    
Change document    
No Input History    
Basic direction is set to LTR    
No BIDI Filtering    
Field Label
  Length  Field Label  
Short 10 SupTax Mtd 
Medium 16 Super Tax Method 
Long 25 Employer Super Tax Method 
Heading 16 Super Tax Method 
Documentation

Definition

Select the method of calculating Employer Superannuation Contribution Tax (ESCT). This is the tax on the employer's superannuation contribution to the employee.

The various methods of ESCT calculation are:

  • Fixed Rate

    ESCT is calulated as per the rate entered in the Superann. Witholding Tax Rate (SSCWT) constant of table view Payroll Constants (V_T511K). For example, 33%.

    Note that effective April 1, 2012, this rate applies only on Defined Benefit Funds.

  • Top Rate

    ESCT is calculated as per the rate entered in the Superann. Whg Tax High Rate (SSCHT) constant of table view Payroll Constants (V_T511K). For example, 39%.

    This constant is valid till March 31, 2007.

  • Salary Bracket

    ESCT is calculated based on the employees annual gross earnings, inclusive of gross company superannuation contributions. For example,

Rate (%)    Base Amount for ESCT Calculation

12.5    0 - 16,800

21    16,801- 57,600

33    57,601 and above

The salary thresholds and tax rates are maintained in the tax code SUPWT of table view Tax Scales New Zealand (V_T7NZTX). The system calculates the Annual Gross Earnings and gross company superannuation value rate based on the Specification of wage type with Processing Class 65. The Specification of the wage type and corresponding base amount for ESCT calculation are as follows:

  • 1 - Total of previous financial year's Annual Gross Earnings and employer's superannaution contribution.
  • 2 - Total of previous financial year's Annual Gross Earnings, employer's superannaution contribution and previous year's ESCT

    If you have entered an amount in the Base Annual Salary field, the system calculates the slab rate for the employee based on this amount, during payroll processing.

  • Not Applicable

    The system does not calculate ESCT for the employee. This option is no longer valid.

Note

If you do not select any calculation method, the system selects Salary Bracket as the default rate.

History
Last changed by/on SAP  20130529 
SAP Release Created in