Covid 19/Coronavirus Government Leave Payment Paycode

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Covid 19/Coronavirus Government Leave Payment Paycode

Hi everyone, hope you are safe and well.

Sorry - I couldnt see an option for MYOB payroll.

This will be a new question - our NZ Government is helping out staff with a 'Leave payment" for people affected in being in isolation with Covid 19.

It can apparantly take up to 5 working days to get paid to the employer and we pass on that full payment to the employee.

My question to anyone out there - how to code it in my pay codes please??

From what I can see, it comes in to our business bank account, then I pay the full amount out.

Any advice would be fantastic thank you.

Thanks so much in advance.

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Re: NZ Users MYOB Payroll 2019.1 Covid 19/Coronavirus Government Leave Payment Paycode

Hi @Madge24 

 

I would just create a pay code and use that to pay the employee that amount. This way you can clearly see how much is being paid to the employee and match that to your banking to see how much you are getting in from the Government to ensure that they match up.

 

You may want to check with Employment NZ with regards to whether it will be taxed, accrue KiwiSaver and the like before setting that up that new pay code.

Kind regards,
Steven

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Re: NZ Users MYOB Payroll 2019.1 Covid 19/Coronavirus Government Leave Payment Paycode

Hi Steven,

Thanks for replying. I had all set it up, hoping I had done it correctly, but cannot find anywhere in NZ, anything about tax and kiwisaver.

We havent received payment for our guy yet as 5 days for payment is Tuesday.

So if anyone in NZ knows the answer to tax and kiwisaver and what MYOB/Payroll codes to use - would be great!!!

Thanks again

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Re: NZ Users MYOB Payroll 2019.1 Covid 19/Coronavirus Government Leave Payment Paycode

Hi @Madge24 @Steven_M 

Listening to information today - I would say this is taxable to the employee and should be processed as normal earnings - the leave payment is the subsidy to the employer - so that they can continue to employ and pay the employee - however it is very vague in the documentation - and I will post again if I clarify this.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
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Re: NZ Users MYOB Payroll 2019.1 Covid 19/Coronavirus Government Leave Payment Paycode

Thank you Jennie,

Looking into it - it looks like it may be the case, just waiting to get a definate answer.

Hoping to recieve the one payment tomorrow.

thanks again

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Re: NZ Users MYOB Payroll 2019.1 Covid 19/Coronavirus Government Leave Payment Paycode

Hi @Madge24 

I have confirmed today that the wage subsidy is definately taxable and employees should have PAYE, student loan, kiwisaver all deducted as per normal. The Leave Payment is taxable as well.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
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Re: NZ Users MYOB Payroll 2019.1 Covid 19/Coronavirus Government Leave Payment Paycode

Hi Jennie

 

So would you agree that employees as paid as normal, with no new paycodes etc required.  The business then receives the subsidy to offset their costs.  The subsidy could be coded as an income stream or coded directly against the wages expense?

 

Cheers

Jacqui

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Re: NZ Users MYOB Payroll 2019.1 Covid 19/Coronavirus Government Leave Payment Paycode

Hi @Jacqui_M 

It was suggested in a payroll forum that you should pay it under a separate code - so you can track who is paid what - in case of audit later on.

Regards,
Jennie Kingma
JK Business Systems Ltd, Hamilton, NZ
Email: jennie@jkbusiness.co.nz
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Re: NZ Users MYOB Payroll 2019.1 Covid 19/Coronavirus Government Leave Payment Paycode

Thanks Jennie, take care Smiley Happy

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Re: NZ Users MYOB Payroll 2019.1 Covid 19/Coronavirus Government Leave Payment Paycode

Hi All

 

Sorry I am still confused. So this means that when we received $350 per week for a part time employee we have to deduct PAYE, student loan and kiwisaver from this amount? So they don't get full payment of $350?

 

 

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