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Wage Subsidy guidance for first payroll
March 31st, 2020
If you have received the wage subsidy and are now preparing the first payroll, here are our tips.
The wage subsidy guidelines are evolving daily. Some employers are concerned about the potential implications of getting the application wrong particularly if you have based the application on a forecast position.
Here are some thoughts to help you through the process.
If you think you meet the criteria, you are entitled to apply for the subsidy. It is important for you to have documentation to support this position. This is likely to include a turnover forecast based on the changes you are seeing in your business. Save these workings together with any commentary you have so you can provide it if required.
For those of you that have received the wage subsidy already, you may be preparing your first payroll with the subsidy. Some points to note:
- Check the Work and Income website before you process the payroll as it is being updated regularly (especially regarding part time employees)
- Set up a spreadsheet to keep track of your employees, what subsidy you received and how much has been paid out each pay-run
- Ensure you still adhere to normal employment law rules through this period
Remember this is uncharted territory and the rule book is being written as we go.
If you are acting in good faith and doing your best to look after your staff, then you shouldn’t have anything to worry about.
If you have any queries, please contact me.
Chris Lynch, CA
Managing Director, Lynch & Associates Limited
Get in touch by Email or Phone: +64 9 366 6008
Chris is the founding Director of Lynch & Associates Limited.
He qualified as a CA in 1973 and is a full member of the College of NZICA now merged with CAANZ. His expertise is in the areas of tax, accounting, business development, forecasting, and auditing. He has a clear focus on adding value to his clients lives and businesses and seeing the people behind the numbers.
Chris experience includes working as a CFO and company secretary for some of New Zealand’s leading companies before starting his own CA firm in 1999. In his previous roles Chris has worked in the wool, dairy, engineering FCG, banking and investment banking and stock broking industries.
Today he uses this vast experience to assist his clients add value to their businesses and personal lives.