COVID-19 wage subsidy payments for Essentials

https://help.myob.com/wiki/x/xg70Ag

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New Zealand only

The New Zealand Government has announced a wage subsidy to support businesses impacted by COVID-19. To see if you're eligible, check the NZ Government’s fact sheet on the wage subsidy.

This subsidy is taxable and functions in a similar way as Accident Compensation Corporation (ACC) payments. That means, employers are required to pay 80% of their employee’s wage during this time.

The government will pay a wage subsidy as a lump sum and covers 12 weeks per employee.

The amounts of the subsidy are:

$585.80 (for employees who work 20+ hours), or
$350.00 (for employees who work less than 20 hours)

This is a Gross amount and supplemented with the employee’s wages up to 80% of what they would normally earn.

To keep it clear for your employee’s and yourselves, we recommend setting up a new pay item for the subsidy payment.

For more information, see the NZ Government’s Employer COVID-19 wage subsidy and leave payment information sheet.

Example:

An employee normally earns $1000 for a 38-hour week.

Under the COVID-19 wage subsidy, the employer will now be required to pay their employee $800 per week, which is 80% of their normal wage.

Of the $800 payment, $585.80 will consist of the government subsidy.

To track this in MYOB Essentials, set up a COVID-19 pay item and assign it to your employees.

OK, let's step you through it.

To create a COVID-19 pay item

To create a COIVD-19 pay item

Go to the Payroll menu and choose Pay items. The Pay items page appears.
Click Create earning. The Create new earning window appears.
For the earning Type, choose Standard earning.
For the Name, enter "COVID-19".
If you'd like a different, more personalised, name to show on payslips for this earning, enter a Name for payslip, such as "Self Isolation".
For the Rate, choose Per hour.
Leave the Amount as 0.00.
Choose Taxable for the Tax.

Here's our example:
Click Save.
When you're done, you can assign pay items to your employees.

To assign the COVID-19 pay item to an employee

From the Payroll menu, choose Employees.
Click the employee's name.
Click the Pay items - earnings & deductions tab. The top section of the page is for Earnings.
Click the dropdown arrow next to the Add earning... field.
Choose the COVID-19 pay item. The pay item is assigned to the employee.
Click Save.
Repeat from step 2 to assign the pay item to another employee.