How to manage COVID-19 payment
Firstly, record hours in Time & Income, as normal, but with “COVID-19 Leave”:
“COVID-19 Leave” is similar to “ACC Paid Leave”, where the pay rate is zero, but will accrue annual leave entitlement.
Secondly, enter a payment under Other Income to pay your employee:
For future reporting purposes, we have created two special income items called “COVID-19 Relief Payment” and “COVID-19 Subsidy Top-up”.
You can choose to capture the Wages Subsidy and the amount you will top combined using the first item only, or you can capture these separately using both items. Choose the method that suits your business best.
According to the guidelines from the government, the amount paid to your employee should not be less than 80% of the employee’s normal earnings.
If you have an employee that works irregular hours and are not sure what their normal earnings are, please use our feature “Average earning based on the last 12 months since lockdown". This will help you to determine how much to pay.
After using this option the first time, you can click on “Express Input” to speed up the data entry.
Here is the Time & Income summary after you have approved it.
If you have chosen to capture the Wages Subsidy and the amount you have topped up separately, the Time & Income summary will look like this after you have approved it.
Please be aware, the Wages Subsidy from the government is for helping businesses to get through this difficult time, but is not a compensation to cover anyone’s full wages. So the amount paid to the employee wouldn’t necessarily be equal to the subsidy the employer will be getting.
Also whatever amount the employee is paid will be subject to normal income tax legislation.
If you want to save time entering timesheets, please click on “Leave Periods” button, which can be found on the right hand side of the Time and Income Screen.
This will allow you to preload the COVID-19 Leave records for a date range. This will mean you do not need to enter the leave each pay period as the system will auto populate the data when you open the pay period.
Here is the leave record.
To generate a report on COVID-19 related items across any date range , go to the Report Centre, Pay-run Reports, then select Other Income History. You can then select to run the report by selecting Pay Period range or Period End Date.
Here is an example of the Other Income History List