Wage Subsidy Information for Contractors
As a contractor, I’m sure you are wondering what happens if your contract is terminated due to Covid-19, and if the Government wage subsidy applies to you.
Great News…it does!!
Here’s what you need to know:
Contractors are deemed as owning your business, as such Contractors are entitled to apply Covid-19 Employer support.
Under this support scheme, contractors are entitled to a Government subsidy of $585.80 per week.
In order to apply for the subsidy, firstly you need to have taken steps to mitigate the effects of income disruption. This could be talking to your bank about loans or mortgage holidays etc.
To apply for the subsidy go to:
Before you begin filling out the form you need the following information:
– Business IRD number
– IR Customer name
– NBN Number – https://www.nzbn.govt.nz
Is the wage subsidy taxed?
The wage subsidy is exempt from tax.
The subsidy is not classed as income tax for the company, nor does it hold any GST so is zero rated, but it is classed as other income
If you have an accounting system we suggest you create a new income stream, or code, to identify the wage subsidy. This will help with the compilation of year-end accounts.
We are here to help.
If you have any questions or need help completing the application please contact: Diella Gabelich on 021 570 357.
Thanks and regards,
Blue Sky Recruitment