Our philosophy: Be kind, be resourceful, be resilient. Lets all help each other...
As your aware, the world is changing quickly, and we didn’t think it would change as quickly as it has.
We are now working from home, and are here to support you through these difficult times. Our phone & email systems will still work as normal, so please email or call us if you have any queries or need help – below are our contact details:
Prue Anderson – Ph 027 5055 618 – email@example.com
Maria Forlong – Ph 027 3812 810 – firstname.lastname@example.org
Sandy Sloan – Ph 027 3810 991 – email@example.com
Kaley Wainhouse – Ph 027 3810 102 – firstname.lastname@example.org
We are coping with a lot of queries at the moment, so please don’t panic. If you can’t get through immediately, leave us a message & we’ll get back to you as soon as we can.
Thank you to those who have contacted us with queries, and a big thank you for being patient when you’ve had to wait for a response from us.
Advice & Useful links for information:
If you know your business is, or will be, facing disruption as a result of COVID-19, be concerned for your people, be aware of your contractual & financial issues, and review your insurance cover:
We’ve listed some practical steps we advise you to take:
The website which covers all bases is the https://covid19.govt.nz/ . You can access other useful information via this website.
Other useful links:
If you need Payroll support & you pay your staff via SmartPayroll, they are available via email email@example.com, or by phone 0800 10 10 38. Alternatively, call us;
Whanganui & Partners is offering COVID-19 support; visit their website https://www.whanganuiandpartners.nz/
Workplace response to coronavirus (COVID-19)
Employer Support – Wage subsidy and Leave Payment
Employer COVID-19 wage subsidy and leave payment information sheet
Treadwell Gordon Article – Coronavirus & the workplace
Creative New Zealand – Artists
Guidelines for the hospitality industry
Subsidies, PAYE, Taxes & GST
Currently we’re in a fluid situation with many questions still unanswered. In the absence of clear guidance from government, we’re making some pragmatic and, we believe, defensible calls. We anticipate that the IRD will also be pragmatic when they begin to review the payments made to employers, and the self-employed when we emerge from the lockdown & get back to ‘normality’.
We’ve been asked about the tax treatment of the subsidies. The following is the tax & GST treatment we’ve gleaned from the IRD website:
Wage and leave subsidies: income tax, GST, PAYE and employer obligations
Wage subsidies and self-isolation leave subsidies are both paid by the Ministry of Social Development. They should be passed on to the employee by the employer and processed as part of the employee’s normal wages. All deductions of PAYE, Kiwisaver, Student Loans, child support etc are made as normal.
If the total wage (subsidy + employer funded pay) amounts to the same wages as previously, the pay and deductions on their payslip should be the same. Whether employers top up the subsidy with cash payments or annual leave is up to them to arrange with staff.
The employer will not be liable for income tax or GST on the subsidy received from MSD and will not be entitled to an income tax deduction for wages paid out of the wage subsidy.
Wage & Leave Subsidy:
The effect of the subsidy is that the employer is a conduit, receiving the subsidy & passing it on to the employee. It has no effect on the employer’s income nor expenses
Remember that a leave subsidy must be paid in full to the employee (& may be topped up by annual leave if the employee agrees to use their annual leave)
Business Finance Guarantee Scheme
Do I still have to make tax payments: GST, PAYE & provisional tax while we’re in lock-down:
The answer is Yes, tax payments still need to be made. However, if you’re not able to pay on time, let us know, and we’ll make an arrangement with the IRD for you. The IRD has been given discretion not to charge interest on underpayments of tax for taxpayers unable to pay tax on time due to the outbreak. Click on the link for more details:
Take care & stay well.
Prue, Maria, Sandy & Kaley.