Employer obligations for employee share scheme benefits paid in cash

This interpretation statement explains an employer’s PAYE, student loan and KiwiSaver obligations when an employee receives a benefit under an employee share scheme that is paid in cash. 

It updates and replaces IS 24/05 to reflect changes in the Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Measures) Act 2025 that mean ACC earners’ levy does not apply to cash-settled ESS benefits.  This aligns the treatment of cash-settled and share-settled ESS benefits.