The NZ Government has announced a wage subsidy for employers who have to lay off staff because of the COVID 19 virus.
Employers will need to pay 80% of their employee’s wages during this time. This will be made up of the $585 subsidy (for employees who work 20+ hours) or $350 (for employees who work less than 20 hours) which is a Gross amount and supplemented with the employee’s wages up to 80% of what they would normally earn. You will have to pay PAYE on this amount.
This is a taxable subsidy and is treated as a normal payment. This means other items, like Kiwisaver, Student Loan, and Child Support payments etc will still need to be paid. You'll still need to do your payday filing on theses pays too.
To pay this subsidy in MYOB Payroll, you'll need to set up an allowance for COVID-19.
