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.