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Latest IRD News - June 2022

27/6/2022

 

​COVID-19 Payment review 

The Inland Revenue have nearly completed the applications for the COVID-19 Support Payment and are now reviewing the accounts of a sample of their customers who received one or more of the following:
  • Resurgence Support Payment (RSP)
  • COVID-19 Support Payment (CSP)
  • Small Business Cashflow Scheme loan (SBCS).

The review is to make sure customers met the relevant eligibility criteria and have used the payments in line with the terms and conditions. If the IRD find you were ineligible or have not used the payments in line with the terms and conditions, they may act to recover these.

To check the eligibility criteria visit the website by clicking the link. 
CHECK NOW
The message here is to ensure to send your expenses reconciliation to your accountant.

​Hidden Economy real estate campaign

Inland Revenue started the campaign because a number of real estate agents appeared to be:
  • claiming private expenses against their business income and/or claiming expenses without supporting business records
  • using net versus gross values when reporting GST
  • not including wage subsidy payments received within their annual income tax return.
Learn More
The message here is do not claim personal expenses and common errors that real estate agents make. 

If you have questions about any of these issues please do not hesitate to get in touch with us here at Apex Accountancy.

Leave and pay entitlements during Covid 19

2/2/2022

 
Employers and employees need to work together to protect New Zealand and keep each other safe during the global COVID-19 pandemic. This means that normal obligations to keep in regular contact and to act in good faith are more important than ever. 

Regular employment law still applies to all employment relationships – regardless of the circumstances that we find ourselves in. This includes:
  • having a written employment agreement for every employee, and doing what that agreement requires 
  • keeping each written employment agreement up to date, including documenting any changes that affect rates of pay or hours worked 
  • meeting legislative and any relevant contractual requirements for changing employment arrangements    
  • complying with all minimum standards legislation and with the Employment Relations Act 2000. 

When COVID-19 traffic light settings change, employers and employees should first discuss whether the employee can work normally, how much work is available, and how to work safely at home or at their usual place of work. 

If the employee cannot work normally (e.g. their normal number of hours), the employer and employee should discuss what options are available. This page outlines some of those options. 

Employee entitlements to leave and pay

It can be difficult to navigate a complex and rapidly changing situation such as with COVID-19. One of the key challenges is working out employee entitlements to leave when the worker cannot go to the workplace or work from home. 

If a worker is sick with COVID-19, or required to self-isolate under Ministry of Health guidelines for COVID-19, the first consideration for an employer should be to look after people, contain COVID-19 and protect public health. 

Employers should not require or knowingly allow workers to come to a workplace when they are sick with COVID-19 or required to self-isolate (as a suspected case, a close contact, or on return from overseas) under public health guidelines for COVID-19. If they do, they are likely to be in breach of their duties under the Health and Safety at Work Act. 

The following table provides guidance to employers and employees about these entitlements. 

In all options in this table, the employer and employee should seek first to reach agreement in good faith on what approach will be taken.
Employee is:
Leave entitlements for employee
Pay entitlements
​Employee is working:
·       At home
·       At the workplace
​Not applicable as they continue to work.
Employee should be paid, as normal, for each and every hour that they work.  This must be at least the applicable minimum wage.
Employee is on annual holidays
Employees can use their existing entitlements.

Employees can agree to take annual holidays in advance, but they cannot be compelled to do so.
Leave paid in accordance with the Holidays Act and the applicable minimum wage.
Employee is sick, or caring for a dependent who is sick
Employees can use their existing sick leave entitlements. If paid sick leave is not available, paid special leave should be considered. An employer and employee may agree that other leave is taken.
Leave paid in accordance with the Holidays Act and the applicable minimum wage.
Employee is not at workplace, cannot work from home, and is not sick ​
Employer and employee should consult their employment agreement and discuss and agree options. 
 
Special paid leave should be considered especially in the short term while you discuss what happens next. Other options that could be considered include: 
·       annual holidays
·       leave without pay*
·       long-service leave (if relevant)
·       alternative holidays (if relevant)
·       other payments (even partial payments) by the employer for a certain period of time
·       any combination of the above.
​
If the desired set of options are not provided for in the employment agreement, it would be necessary to negotiate a variation to the employment agreement. If a variation is not agreed, then the existing agreement must be followed.

Note: if an employer considers broader variations are needed to hours or other aspects of the agreement, the employer should read the restructuring guidance.
Leave paid in accordance with what has been agreed, including being compliant with the Holidays Act and the applicable minimum wage.
Employee is not at workplace, not working from home, not sick, and has not agreed some form of leave with employer ​
If the parties cannot agree, the employer can direct the employee to take entitled annual holidays with at least 14 days’ notice.
Directed annual holidays are paid in accordance with the Holidays Act and the applicable minimum wage.
Employee is absent from work without agreed leave.
Employer and employee should discuss options available for what happens in this situation, but could include unpaid leave.
Employer and employee should discuss options available for what happens in this situation, but could include unpaid leave. ​
* If the employer is receiving a wage subsidy or Leave Support Scheme payment, all named employees must receive a minimum payment depending on their circumstances. For employment advice , talk to your employment lawyer.

There are many options set out in this table and the implications of those options may vary depending on people’s individual circumstances. Parties are strongly encouraged to seek advice to ensure that the options chosen are the best options in the circumstances available.

Contractors and self-employed people

Contractor arrangements are not covered by this guidance. Businesses and contractors can agree to any payment arrangements they wish to.

This article has been extracted from the Employment Law website. For more information please click here.
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Wage Subsidy and Resurgence Payments, What you need to know.

25/11/2021

 
Affected by the move to Alert Level 4 on 17 August 2021 and The Current Protection Framework (Traffic Light System)?
​

Wage subsidy August 2021 is available throughout New Zealand to support you in paying your employees two weeks’ worth of wages. Also available if you are self-employed.

What you need to know:
You need to meet the eligibility criteria and meet certain obligations. This involves completing a revenue decline test to show your business has and currently is being affected by the continuation of Alert Levels and traffic light systems, from 17 August 2021. For more information head over to here to Work and Income.

Read More

Who can get the COVID-19 Wage Subsidy - August 2021

21/8/2021

 
Your business needs to meet the eligibility criteria as outlined below and agree to meet the obligations in the declaration to be able to get a COVID-19 Wage Subsidy August 2021. It's available to all New Zealand businesses and self-employed people that meet eligibility criteria.
​
The full eligibility details and obligations are set-out in the declaration, which you must read and agree to when you apply for the COVID-19 Wage Subsidy August 2021.

Read More

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  • Home
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