INFORMATION ON COVID-19

With the internet age and social media forcing information on us, the information we are receiving every time we look at something can be overwhelming. So we thought to try and eliminate some confusion and have the relevant information for our clients and friends in one place.

Please do check out the official page for the latest information at www.covid19.govt.nz.

The Wage Subsidy is to support you to pay your employees

If you employ staff, you can apply for a wage subsidy to assist you in your obligations to pay them during the lock down period.

You can find the information and application forms below for employers and sole traders.

Please check all the latest information which can be found here

How do I code my payment when I receive it?

We created a training video for you on how to do this on Xero. You can do the same process on any software.

Do I need to get permission from my employee to provide their information to MSD?

Yes you must get their permission in writing and keep in on file. The Employee privacy statement is here.

Audits and reviews

You will need to declare you meet the criteria for payment as part of your application. All payments will be subject to audits and reviews.  You must have taken active steps to mitigate the financial impact of Covid-19 on your business.  This could include activating a Business continuity plan and seeking advice and support from banks, accountants, the chamber of commerce and the Regional Business Partner Network. 

See our latest blog here on MSD audits.    

Tax questions

If, as an employer I am receiving the wage subsidy on behalf of an employee, do I have to pay GST on the subsidy?

No – it will be treated as exempt from GST.

As an employer, do I have to pay tax on the wage subsidy I receive for an employee?

No, you don’t have to pay tax on a wage subsidy as it’s classified as excluded income.

Does an employee need to pay tax on a wage subsidy payment?

Yes, they will as the subsidy is paid to the employer as part of their normal wages. This means it is subject to the usual PAYE, Student Loan, KiwiSaver deductions, etc.

If, as an employer I am receiving the leave payment on behalf of an employee because they are in self-isolation, do I have to pay GST?

No – it will be treated as exempt from GST.

If I’m self-employed do I have to pay tax if I receive a leave payment because I am in self-isolation?

This payment will be treated as income for tax purposes.

If I’m an employee do I need to pay tax if I receive a leave payment because I am in self-isolation?

The leave payment will be paid to your employer, and you will receive it like normal wages. This means it’s subject to the usual PAYE, Student Loan, KiwiSaver deductions, etc.

All the above information supplied cutesy of MSD  Please check the website for the latest information.