COVID-19 and KeyLink #6 Accounting
06 April 2020- 9 min read
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Everything you need to know about paying your NZ based staff
06 April 2020- 9 min read
I have had some questions from my customers about the accounting treatment of the COVID-19 Wages Subsidy (and for that matter any further subsidies).
Many of you know that I consider myself an accounting cripple, so I asked my accountant, Sarah of Dcipher Accounts to provide some advice that I could pass on to you.
The IRD have advised that the Wage Subsidy is:
All of this means you need to be careful when you record the transactions in your accounting system.
Here is a simple approach you could take.
Setup 3 new accounts in your accounting system:
When the Wages Subsidy comes in to your bank account:
Each pay period when you pay your employees:
I hope this guide will help you either do the accounting for the Wage Subsidy yourself, or understand how your accountant handled it.
Keep Safe
Be Kind
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KeyLink owner, 25+ years experience in designing, building and running mission critical IT systems. More than 12 years experience supporting and using payroll systems.
+64 9 280 0328
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