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COVID-19 Payments in iPayroll

Note: The COVID-19 situation is changing. We will constantly be updating this section throughout the lockdown period. Please continue to check back here for regular updates.

Refer to the COVID-19 Change Log for any changes.

General

Many customers have been asking what to pay their employees at this unprecedented time. Below are links to government websites that offer free advice on the types of payments to pay your employees:

The Wage Subsidy scheme (August 2021 detailed in the Work and Income link above) has been developed to help businesses and affected employees. For August 2021, the scheme offers:

  • $600.00 per employee per week for full-time employees (who worked 20 or more hours per week before COVID-19), or the employee's normal salary, whichever is the lesser
  • $359.00 per employee per week for part-time employees (fewer than 20 hours), or the employee's normal salary, whichever is the lesser

Note: Unlike the scheme that operated in March last year, this Wage Subsidy Scheme requires businesses to reapply for each fortnightly payment.

Applications for round 4 of the COVID-19 Wage Subsidy (covering 01 October to 14 October 2021) close on Thursday 14 October 2021 at 11:59pm.

Applications for round 5 of the COVID-19 Wage Subsidy (covering 15 October to 28 October 2021) open at 9am on Friday 15 October 2021, and applications will be open for two weeks.

Work and Income have provided a link to the application form on: https://www.workandincome.govt.nz/covid-19/wage-subsidy/how-to-apply.html.

Note: Where an employee is paid less than the Wage Subsidy because their normal salary is less than the Wage Subsidy, the difference should be used for the wages of other affected employees.

If you choose to pay your staff as normal, no further action is required.

You can, however, set up a special leave element to track the normal salary of your employees during the lockdown period. See the I want to pay my employee their normal salary but treat it as a COVID-19 payment. How do I set that up in iPayroll? question in the COVID-19 Frequently Asked Questions article.

For more information on the impact COVID-19 has on your payroll, see the COVID-19 Frequently Asked Questions article.

Latest Updates From the Hon Grant Robertson

“We still want employers to use their best endeavours to pay employees 80% of their normal salaries.  Where this is not possible, we want the value of the subsidy to be passed on.

“But to be absolutely clear if a person’s income is normally less than the subsidy they can be paid their normal salary."

Hon Grant Robertson

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