Wage subsidies and self-isolation leave subsidies should be passed on to the employee by the employer and processed as part of the employee’s normal wages. All deductions of PAYE, Kiwisaver, Student Loans, child support etc are made as normal.
If the total wage (subsidy + employer funded pay) amounts to the same wages as previously, the pay and deductions on their payslip should be the same. Whether employers top up the subsidy with cash payments or annual leave is up to them to arrange with staff.
The employer will not be liable for income tax or GST on the subsidy received from MSD and will not be entitled to an income tax deduction for wages paid out of the wage subsidy.
Legacy wrote: I’m self employed and just got the $7k CoVid subsidy . I asked my accountant about tax etc and was told there is no tax or gst to be paid on this money. |
pjc wrote: 76 new cases overnight,total now 230 |
fish-feeder wrote:
283 I think it is now |
SaltyC wrote: Yes Kevin, it is paid as a lump sum to all who qualify and claim it |
Legacy wrote: I’m self employed and just got the $7k CoVid subsidy . I asked my accountant about tax etc and was told there is no tax or gst to be paid on this money. |
wayno wrote: My understanding is that the lump sum covers 12 weeks. If the lockdown ends after say, 6 weeks would those who claimed and were paid out be liable to return the "unused" portion? |
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