When you record an employee's pay, you can enter the subsidy amount against the COVID-19 pay item.
From the Payroll menu, choose Enter pay.
Choose the pay dates, select the employees you're paying, then click Start pay run.
For each employee:
If the subsidy is per hour:
Enter the employee's normal hourly rate against the Rate $ for the COVID-19 pay item.
Work out the Quantity (hours) to enter against the COVID-19 pay item. This will be specific to the payment you're receiving. For example, you might need to divide the employee's subsidy payment amount by their normal hourly rate. So, for example, if the subsidy is $585.80 and the employee's regular pay rate is $35, you'd divide 585.80 by 35 to determine a Quantity of 16.7371
If applicable, enter any additional hours against the applicable pay or leave item. This will be specific to the payment you're receiving for the employee.
Repeat for each employee and finalise the pays as normal.
When you're no longer paying an employee the subsidy, you can unlink the COVID-19 pay item from them. This will stop it showing on the employee's pay. Learn how to unlink a pay item from an employee.
Recording the government subsidy payments
To record the subsidy payments you receive from the government, set up a new account to track those payments. If you use bank feeds on the account the payments are deposited into, you'll be able to allocate those amounts directly to the new account. Otherwise you'll need to record a receive money transaction to allocate those payments to the new account.
Talk to your accounting advisor about the best way to handle these payments for your business and any GST or other reporting implications.