COVID-19 Leave Subsidy

UPDATE 27/03/2020: The Government has made modifications to the wage subsidy scheme to ensure people don’t lose their jobs during the national lockdown.

"We are folding the previous sick leave scheme into this scheme to prevent double-dipping. The original sick leave scheme was designed when few people were in self-isolation, and it is no longer fit for purpose. We are working on arrangements for those in essential work who require sick leave due to COVID-19."

The following information is only relevant to employers who have received the Leave Payment prior to the government announcement.

COVID-19 Leave Payment

From the 17th of March 2020, the COVID-19 Leave payment will be available to support people financially if they meet the following criteria:

• Need to self-isolate in line with the Ministry of Health guidelines, have registered as needing to self-isolate with Healthline, cannot work from home and their self-isolation is not because they left NZ since the travel restrictions on 16 March 2020 and have since returned.

• Cannot work because they have been diagnosed with COVID-19.

• Cannot work because they are caring for dependents who are required to self-isolate or who are sick with COVID-19.

The payments will be as follows:

• $585.80 per week for a full-time worker.

• $350 per week for a part-time worker.

The payments must be passed on in full to the relevant employees (less employment taxes and other deductions).

COVID-19 Leave - Processing Payment through PayHero

Contact Support

If you have an employee eligible to receive the COVID-19 Leave subsidy payment, please contact us at support@payhero.co.nz.

We will be able to create the required pay items in your account to ensure any payments can be easily and correctly processed.

Adding Pay Items into the Pay

With these new Pay Items in your account, you're now able to add these directly to an employee's pay after the draft pay has been created.

There are three different situations where this pay item can be used in a pay:

1. The employee has some time worked during the pay period and the Leave Subsidy makes up the remaining period.

Add the COVID-19 Leave pay item into the pay under 'Earnings' and include the regular pay line for the employee's hours worked. If the employee is salaried, modify the Salary line to reduce the gross amount by the COVID-19 Leave payment amount.

2. The Leave Payment covers the entire period.

Add the COVID-19 Leave pay item to the draft pay. Remove any other earnings lines in the pay.

3. The payment for the Hours Worked / Salary and COVID-19 Leave Payment falls short of the employee's regular pay and it needs to be topped up with another leave type such as Sick Leave or Annual Leave.

Add the COVID-19 Leave pay item to the draft pay. Next, add the leave pay item being used to top up the pay e.g. Sick Leave Taken or Annual Leave Taken. Determine the gross earnings amount for this leave pay item line by subtracting the COVID-19 leave payment amount (e.g. $585.80) from the regular pay the employee would receive for the pay period.

This amount should be then divided by the daily rate being used by the Sick or Annual leave type to calculate the number of days of leave being used to top up the pay. Enter this number of days into the 'Days' quantity on the leave pay item line.