We hope this finds you all safe and well in wherever you are seeing out this lockdown.  Our team are all working from home, the first two days have gone well.  We are utilizing the likes of Zoom to undertake face to face communication with clients and the wider team.

We have been fielding a lot of questions about the COVID-19 subsidies, here are some answers to common questions:

Wage subsidies

Does it include GST?

No

Do I have to deduct Paye and KiwiSaver?

Yes, All taxes and deductions as normal.

If your employee has selected above the minimum of 3% for KiwiSaver the employee can choose to reduce it at this time.

Am I eligible if my income between January to March 2020 is not down but April will be?

As your predicted income will be at least 30% down you will be eligible for the subsidy.

Do I need to prove it?

Not at this stage, the wages subsidies with a high level of trust. Please note it may be audited later.

What do I pay my employees if their normal pay is more than the subsidy?

The Govt expects to use best endeavors to pay your staff at least 80% of their normal pay, if this is not possible the minimum is the wages subsidy you have received.

The wage subsidy, if applied for, must always be passed on directly to the employee through the normal payroll system (with tax deducted etc).

Can employees use leave?

Yes, you can top up from 80% to 100% with the employee’s annual leave.

Normal employment law applies at this time, if you need specialist advice, we can refer you to an HR specialist.

Leave subsidies

At 4.00pm on 27 March the leave subsidy has been folded into the Wage subsidy, this will no longer be a separate payment.

Other

iPayroll users

For those of your using iPayroll they are making changes in line with these subsidies to make it easier, if you need assistance please email iPayroll directly via email help@ipayroll.co.nz.

Ipayroll help on COVID-19

https://support.ipayroll.co.nz/hc/en-us/articles/360001441336-COVID-19-Payments-in-iPayroll

As things change and the government puts out more announcements, we will endeavor to keep you updated on these changes and what it might for you.

We totally understand that this is an uncertain time for all New Zealand, we want to be able to assist you where and when we can.  Please do not hesitate to contact us if you have any questions or require assistance.