COVID-19

This page is specifically dedicated to giving businesses updates on employee, financial and legislative requirements from the government.

WHAT YOU NEED TO KNOW

We will keep this page as up to date as we can

Our team aim to have all essential information listed on this page regarding

COVID-19 with FAQ’s and links to our social media.

Applying For Government Subsidy

Companies with Employees and already have an NZBN

Sole Traders, contractors and partnerships need to apply for an NZBN

Applying For Wage Subsidy

If you expect your income to reduce by 30% or more, then you can get a wage subsidy for your employers and yourselves as shareholder employees

Employer application

You must pass this payment onto your employee under the normal PAYE procedures – it is taxed and you will need to pay PAYE to IRD the following month.

You must endeavour to pay your employee at least 80% of their wages – under the normal PAYE procedures.

You will need to indicate whether you are full time (more than 20 hrs a week) or part-time (less than 20 hours a week), and will be paid up to 12 weeks.

The leave payment can be paid to your employees if they cannot work at home and have registered as needing to self-isolate.

There could be Questions and you could be audited.

Applying For Wage Subsidy

Firstly you need an NZBN if you don’t already have one (Companies will already have one)  It is the long number given to them on incorporation)

Apply here to the NZBN 

If you expect your income to reduce by 30% or more, then you can get a wage subsidy for your employers and yourselves as shareholder employees

Sole trader application

Employer application

You must pass this payment onto your employee under the normal PAYE procedures – it is taxed and you will need to pay PAYE to IRD the following month.

You must endeavour to pay your employee at least 80% of their wages – under the normal PAYE procedures.

You will need to indicate whether you are full time (more than 20 hrs a week) or part-time (less than 20 hours a week), and will be paid up to 12 weeks.

The leave payment can be paid to your employees if they cannot work at home and have registered as needing to self-isolate.

There could be Questions and you could be audited.

Companies with Employees and already have an NZBN

Applying For Wage Subsidy

If you expect your income to reduce by 30% or more, then you can get a wage subsidy for your employers and yourselves as shareholder employees

Sole trader application

Employer application

You must pass this payment onto your employee under the normal PAYE procedures – it is taxed and you will need to pay PAYE to IRD the following month.

You must endeavour to pay your employee at least 80% of their wages – under the normal PAYE procedures.

You will need to indicate whether you are full time (more than 20 hrs a week) or part-time (less than 20 hours a week), and will be paid up to 12 weeks.

The leave payment can be paid to your employees if they cannot work at home and have registered as needing to self-isolate.

There could be Questions and you could be audited.

Sole Traders, contractors and partnerships need to apply for an NZBN

Applying For Wage Subsidy

Firstly you need an NZBN if you don’t already have one (Companies will already have one)  It is the long number given to them on incorporation)

Apply here to the NZBN 

If you expect your income to reduce by 30% or more, then you can get a wage subsidy for your employers and yourselves as shareholder employees

Sole trader application

Employer application

You must pass this payment onto your employee under the normal PAYE procedures – it is taxed and you will need to pay PAYE to IRD the following month.

You must endeavour to pay your employee at least 80% of their wages – under the normal PAYE procedures.

You will need to indicate whether you are full time (more than 20 hrs a week) or part-time (less than 20 hours a week), and will be paid up to 12 weeks.

The leave payment can be paid to your employees if they cannot work at home and have registered as needing to self-isolate.

There could be Questions and you could be audited.

Frequently Asked Questions

Will I get the wage subsidy?

Wage subsidy is applied for and allocated to the person that the employer lists in the application.

Now that the govt has taken away that cap this should mean all employees can get it so long as the employer can afford and excerise its best endeavours to top up the employee’s normal pay to a minimum of 80% of their normal income and meets the other criteria listed.

There is more information regarding the wage subsidy here.

You can apply via WINZ for the wage subsidy.

 

Do I have to take annual leave when we are closed?

Depending on what the employment agreement says. the Employer can request for employees to take annual leave if the parties cannot agree. But the employer has to give 14 days notice of this notification. They also must attempt to negotiate in good faith. If people want to keep jobs I suggest they use annual leave top up if they are not working. Be flexible and help your employers. Those who help now are likely to be rewarded later.

What if an employee gets sick?

If an employee gets diagnosed or has to care for someone diagnosed this has a different payment to the wage subsidy and the employer should be applying for this every 2 weeks as a minimum. They should also have setup a way for employees to notify employers of the need to do this.

What if my employees earn less than the wage subsidy?

If your employees earn less than the subsidy they are due then employers set the remaining amount aside to repay back to MSD.

Do I need to keep records of wage subsidy?

Ministry of Social Development are collecting information in the applications of employees and IRD numbers so they can track is getting what from their employer. Keep good records.

Do I need to record agreements with employees around leave and hours?

Make sure you have a paper trail of what is being negotiated and agreed with each employee. If you get asked for verification after all this is over then the paper trail will save you. Also make sure your payroll person can show how the subsidy for the people applied is used.

Can I reapply for wage subsidy again now the cap has changed?

If you applied before today and the 150k cap limited who could apply for then you may reapply. Check out the COVID-19 website for links to this updated information.

Can I still make a personal grievance?

Employees can raise personal grievances 90 days after the event or action occurred. We could be seeing a spike of PGs and disputes in 3 months times if the next 4-6 weeks are not handled carefully, with patience and kindness. That goes for employees and employers.

Can I cut back employees hours if we do not have the means to pay them?

If the employer doesn’t have the cashflow to top-up wages, can’t get help from the bank, they may cut hours back to the subsidy level or do a restructure to reduce numbers this may be done now or at any time during the lock-down. If you need specific advice on the subsidies get in contact with MSD on the number provided on the COVID website.

What if I do not understand the guidelines?

Guidelines are open to interpretation, and we can only do our best to try and understand them.

You can contact the MSD,  directly if you need any help. 

 

Will I pay GST on the wage subsidy? How do I code in Xero?

The subsidy payment is not subject to GST and is non-taxable income

If you are coding your own “Xero” – code to other revenue – no GST please.

 

My employee normally receives less than the COVID-19 Leave Payment amount each week. Do I have to pay them all of their leave anyway?

No.
If your employee normally works less than 20 hours per week and receives less than $350 per week (or works more than 20 hours per week and receives less than $585.80 per week), then you only need to pay them for what they would normally receive for a week.

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Ezebiz Accountants Whakatane | Bronwyn Pilkinton | Small Business Accounting | Tax Accountant | Tax Returns | Xero Training | Paye | Bookkeeping | MYOB | Local Accountants | Financial Planning | Business Coaching | End Of Year Tax Return | End of Year Financial Statements | Invoicing | Tax Your Local Accountants Whakatane | Ezebiz | Accounting Firm Whakatane | AKE | Arrow Accountants |  Focus Chartered Accountants
Ezebiz Accountants Whakatane | Bronwyn Pilkinton | Small Business Accounting | Tax Accountant | Tax Returns | Xero Training | Paye | Bookkeeping | MYOB | Local Accountants | Financial Planning | Business Coach | End Of Year Tax Return | End of Year Financial Statements | Invoicing | Tax Your Local Accountants Whakatane | Ezebiz | Accounting Firm Whakatane | AKE | Arrow Accountants |  Focus Chartered Accountants
Ezebiz Accountants Whakatane | Bronwyn Pilkinton | Small Business Accounting | Tax Accountant | Tax Returns | Xero Training | Paye | Bookkeeping | MYOB | Local Accountants | Rental Property Compliance | Financial Planning | Business Coach | Biz Angels | End Of Year Tax Return | End of Year Financial Statements | Invoicing | Tax Your Local Accountants Whakatane | Ezebiz | Accounting Firm Whakatane | AKE | Arrow Accountants |  Focus Chartered Accountants