Short answer: Yes, they become part of the employee’s gross earnings. NZPPA has been in discussion with IRD on this since these new payments were announced and have had it confirmed that both the Wage Subsidy and leave payments are gross payments and PAYE is to be deducted along with all deductions (student loan, child
Month: March 2020
Example of how the Government Wage Subsidy and Leave Payment is taxed
The wage subsidy and leave payment are subject to tax and become part of gross taxable income for the employee. Example of the Wage Subsidy: A full-time employee (working more than 20 hours per week) would normally be paid $1000 gross per week. The company has been hit hard from the COVID-19 pandemic and applies