Updates to the Wage Subsidy
The Government has made some changes to the Wages Subsidy on Friday 27th March at 3pm. To apply, click
- There is a new Declaration required for approval providing some further clarification around the subsidy. To view the declaration, click here.
- If you applied for the Subsidy prior to this, you are bound by the previous declaration, but this does provide clarification surrounding your obligations to your employees under employment law.
- You will also notice that there is no longer a requirement to include your NZBN as this was a further time delay for those who did now have one previously.
- “You can’t apply for the same employee twice. You can only apply for employees you haven’t already applied for.” This allows you to apply for any employees or owners that may have been missed from the original application.
Coding the Wage Subsidy
For those businesses who have applied for and received the Wages Subsidy under Covid-19, we suggest that you code the receipt to “Wages Expense”. Make sure the entry does not adjust for GST in your cashbook.
This code will allow us to adjust it correctly at year end to ensure you are not including it as income or claiming it as an expense, in-line with the government guidelines.
For those Businesses who take an active interest and view their Management Accounts on a monthly basis, please contact us, as we are able to adjust your Subsidy to reflect an accurate position of you business’s trading.