We have spoken to many of our clients over the last week and a number of applications have already been made and paid. If you need help with this please do contact us.
It is important to remember the subsidy is to help fund the payroll, and your employees continue to be paid as you would normally or as agreed with them as part of a consultation and mutual agreement.
For further guidance & other resources click here.
Here are a few commonly asked questions we have been asked:
Is there income tax payable on receipt of the subsidy?
No, the receipt is not taxable income, however important to be aware that the there is no tax deduction for the wages funded by the wage subsidy
If I am self-employed is this receipt of the subsidy taxable?
Yes, the receipt is taxable as this is received as personal loss of income. The subsidy would only be exempt for a self-employed person if it used is subsidise wages for their employees
What do I do if the subsidy is higher than what I usually pay my employee?
The wage subsidy is designed to keep your employees connected to you. Any difference should be used for the wages of other affected staff.
Once the subsidy is received, there may be questions that can arise as payroll is being prepared.
Click here for a resource from SmartPayroll with worked examples.