Paying the COVID-19 Wage Subsidy in PaySauce

Why

To help you keep on and continue paying your people

When

Your business can’t run due to lockdowns
or
your team can still work but your business is suffering financially
or
your staff are sick or caring for dependants who are sick.

Rules

• For each full-time employee (at least 20 hours a week), the employer receives a subsidy of $600/week.
• For each part-time employee (less than 20 hours per week), the employer receives a subsidy of $359/week.
• This is paid as a lump sum from the government to the employer, covering two weeks per employee (i.e. 2 x $600 = $1,200).
• If you are receiving the COVID-19 Wage Subsidy August 2021, you must use your best endeavours to pay the employee named in your application at least 80% of their usual wages.
• If that isn't possible, you need to pay at least the subsidy rate (ie, full-time or part-time).
• The only exception to the above is if the employee ordinarily makes less than the value of the subsidy (for example, a part timer who works very few hours). In these cases, the difference should be used to help cover wages for other affected staff.
• The COVID-19 Wage Subsidy August 2021 is to support you to pay two-weeks of wages for your employees from 20 August 2021.

How to pay the wage subsidy in PaySauce

During the subsidised period, payments to staff are treated as wages or salary (not allowances or leave payments) and are subject to the usual deductions like PAYE, KiwiSaver, and student loan repayments.

PaySauce will easily add the COVID-19 Wage Subsidy into your pay. Here’s how:

https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/coronavirus-workplace/

https://www.employment.govt.nz/leave-and-holidays/other-types-of-leave/coronavirus-workplace/changing-an-employees-work-arrangements/

You can stay up to date with all the latest developments at https://covid19.govt.nz/.