In these unparalleled times, New Zealand businesses are facing unprecedented pressures. New Zealand’s premier accounting professionals Tutbury & Associates Limited have expert advice and professional services for getting your business through these tough times.
Inland Revenue has released some tax-related guidance for employers about the wage subsidies.
“It is imperative that all employers pass on the wage subsidies to workers and process them as part of the employee’s normal wages,” advises Kelly Tutbury, Accountant and Managing Director at Tutbury & Associates Limited. All deductions, such as PAYE, KiwiSaver and child support should be made as normal as well.
If the total wage, which is the subsidy and the employer funded pay, amounts to the same wages as previously, the pay and deductions on their payslip will be the same.
Employers will not be accountable for income tax or GST on the subsidy received from MSD. “They also will not be eligible to an income tax deduction for wages paid out of the wage subsidy,” adds Kelly.
If a business is unable to pay its taxes on time due to the impact of COVID19, the IRD can write-off any penalties and interest. “If a business can pay there are numerous options to you, with internet banking or using myIR being the easiest,” adds Kelly.
Inland Revenue has also decided to extend the timeframe for filing Basic Compliance Packages (BCPs). The new due date is 30 June 2020.
If you have any questions or issues about what these new measures will mean for your business, don’t hesitated to contact the expert team at Tutbury & Associates Limited. “Our office will also be temporarily closed but we will be working remotely from home. We will be accessible via email, phone or zoom etc” comments Kelly. Tutbury & Associates Limited can help you with your taxation needs and liaise directly with the Inland Revenue on your behalf.
About Tutbury & Associates Limited:
Tutbury & Associates Limited has worked hard to build their reputation of excellent customer service by working interactively with their clients and making sure that their clients get value for money. They are ideal for ideal for trades people, or anyone who wants to grow their business.
Contact Tutbury & Associates Limited:
Phone: 07 576 2194
Email: admin@tutburyassociates.co.nz
Address: 23 Myres Street Tauranga
Website: http://tutburyassociates.co.nz
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