COVID-19 wage subsidy payments for Ace Payroll

https://help.myob.com/wiki/x/_Q70Ag

Close

How satisfied are you with our online help?*

Just these help pages, not phone support or the product itself

0

1

2

3

4

5

Very dissatisfied

Very satisfied

Why did you give this rating?

It's hard to find information

Instructions are hard to follow

Content isn't detailed enough

It doesn't fix my software problems

Anything else you want to tell us about the help?

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 Ace Payroll, set up a COVID-19 allowance and assign it to your employees.

OK, let's step you through it.

To add the COVID-19 allowance

From the front screen click Allowances, then Add A New Allowance.
Click Description and name the allowance Covid-19. This name will appear on payslips.
Set the Tax Status as taxable.
Click Go.
From the front screen, click Employee > Modify Employee Details > Alllowances .
Click Add to open the Add New Allowance window.
Select the required allowance from the drop-down menu, then click GO.
Enter the specific rate at which you are paying the employee:
- For those that work more than 20 hours the wage subsidy is $585.80
- For those that work less than 20 hours the wage subsidy is $350
Click GO.
Repeat from step 5 to add the allowance to other employees.

Related topics

Allowances and deductions

Create a new allowance or deduction

Link an allowance or deduction to an employee

Page tree

Was this information helpful?

Why not?

How would you improve this page?

Thanks! Anything you'd like to add?