COVID 19 Wage Subsidy

COVID 19 Wage Subsidy

When completing your GST Return please remember that the employer will NOT be liable for GST or income tax on the subsidy received from MSD and will not be entitled to an income tax deduction for wages paid out of the wage subsidy.
Employers can code the income from the subsidy to a liability account. Please get in touch with us if you need assistance with this.
The subsidy doesn't need to be accounted for separately when filing your Employment Information each payday. Include the subsidy and any employer funded pay as 'total wages paid' for each employee.
Wage subsidies should be passed onto the employee by the employer and processed as part of the employee's normal wages. All deductions (such as PAYE, KiwiSaver and child support) should be made as normal.
If the total wage (the subsidy plus the employer funded pay) amounts to the same wages as previously, the pay and deductions on their payslip should be the same. You may choose to top up the subsidy with cash payments or annual leave, but this should be arranged between the employee and employer.
Some software packages may require you to identify the subsidy. If you are not sure what to do, check with your software provider.

Monday, 6th April 2020

"We have been working with DB Chartered Accountants for over 7 years and in that time they have been very approachable, efficient and ahead of the eight ball with reminders of upcoming tax obligations.

I am no longer based in Hamilton but knowing that the team are just a phone call away and that things are in good hands, allows me to focus on my business while on the road.

David, Pam and the team are always quick to answer any queries and will discuss things in layman's terms. They work with you through the harder times as well as the good.

If you want an accountant who listens and will do things with accuracy and professionalism then I have no hesitation in recommending DB Chartered Accountants to you."

Duncan Campbell
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