Common questions during covid-19

If, as an employer I am receiving the wage subsidy on behalf of an employee, do I have to pay GST on the subsidy?

No – it will be treated as exempt from GST.

As an employer, do I have to pay tax on the wage subsidy I receive for an employee?

No, you don’t have to pay tax on a wage subsidy as it’s classified as excluded income.


Does an employee need to pay tax on a wage subsidy payment?

Yes, they will as the subsidy is paid to the employer as part of their normal wages. This means it is subject to the usual PAYE, Student Loan, KiwiSaver deductions, etc.


If, as an employer I am receiving the leave payment on behalf of an employee because they are in self-isolation, do I have to pay GST?

No – it will be treated as exempt from GST.

If I’m self-employed do I have to pay tax if I receive a leave payment because I am in self-isolation?

This payment will be treated as income for tax purposes.


If I’m an employee do I need to pay tax if I receive a leave payment because I am in self-isolation?

The leave payment will be paid to your employer, and you will receive it like normal wages. This means it’s subject to the usual PAYE, Student Loan, KiwiSaver deductions, etc.


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