How to post NZ government COVID-19 resurgence payments and wage subsidies

David Morris
David Morris Member Posts: 14 ✭

Can anyone help me with how to post NZ government COVID-19 resurgence payments and wage subsidies in Reckon ONE?

So far, I treated them as Bill Credits against the Tax account, as if they were credits against an overpaid tax payment. I also ensured they have zero GST, so that shouldn't affect that GST balance, but am concerned that it will still be treated as income when it comes to company income tax.

My gut tells me there's a better way to treat these payments, and although I've already reconciled the accounts up to August, I can reverse that to make any adjustments.

Can anyone share their insights or point me to a useful reference? Thanks.

Answers

  • Kris_Williams
    Kris_Williams Member Posts: 3,243 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert

    I would treat them as Income or Other income deposits. Not sure of NZ rules but in Australia some of these subsidies are taxable. Better to show them as income and let the accountant allocate them appropriately. Definitely not against income tax payments