COVID-19 Leave Element to Pay an Employee 80% of Their Usual Pay

COVID-19 Leave Element to Pay an Employee 80% of Their Usual Pay

COVID-19 80

Businesses accessing the wage subsidy scheme must still undertake best endeavours to pay employees 80% of their pre-COVID income. Where that is not possible – in particular where a business has no activity whatsoever due to the shutdown and workers are not working any hours, the subsidy must be passed on to the employee.
If you able to pay your employees 80% of their usual pay, you need to create a new leave element which will calculate 80% of their pay.

If you are unable to pay your employees 80% of their usual pay, you must pass on the subsidy. See  How do we set up the government subsidy in iPayroll for a full-time employee? and  How do we set up the government subsidy in iPayroll for a part-time employee? for further information.

To easily follow any instructions in our Help Guide using this leave element, we recommend you make the Leave Balance Name 'COVID-19' and the Leave Taken Code  'COVID-19 80'  as in the example below.

Set up a Leave Balance Name

  1. In iPayroll, select Setup > Organisation.
  2. Select the Leave Balance Names sub-menu.
  3. Select +Add to add a special leave balance.
  4. Complete the fields as per the screenshot below:
    mceclip0.png
  5. Select the blue tick to add the leave balance name.
  6. You should now have a Special Leave Balance
  7. Set up Leave Element COVID-19 80

mceclip1.png


Set up a Leave Element

In order for the payment to appear correctly on your employee's payslip, a leave element needs to be created.

  1. In iPayroll, select Setup > Pay Elements.
    The Payments page displays.
  2. Select the Leave sub-menu.
    The Leave page displays.
  3. Select the +Add button, then Add Leave Taken.
    The Leave Details page displays.
  4. In the Basic Details section, complete as per the screenshot below:
    mceclip2.png
  5. In the Leave Type section, complete as per the screenshot below:
    mceclip3.png
  6. Select Save.
  7. The Leave Element is added to the Active Special Leave table.
    mceclip0.png

To find out how to apply this leave element to a timesheet, so your employee receives 80% of their pay, see I want to pay my employee 80% of their usual pay. How do I set that up in iPayroll?.



    • Related Articles

    • Leave Taken Pay Elements

      Leave Pay Elements iPayroll has Standard Leave Taken Pay Elements, these are maintained by iPayroll and are created using standard legislative requirements and processing rules. You can set up your own Special Leave Taken Pay Elements. This allows ...
    • COVID-19 Leave Element to Pay an Employee Their Normal Salary

      COVID-19 Leave Element for 100% For businesses wanting to pay employees their full salaries, but would like a way to track the payments outside of their employees' normal salary payments for the lockdown period. Set up a Leave Balance Name to record ...
    • COVID-19 Pay Element for Leave Accrual

      COVID-19 HRS In order to accrue leave for the time the government subsidy is being paid, you need to create a new pay element to calculate the leave. Use this every time you use 'COVID-19 FT' and 'COVID-19 PT'.  You only have to set it up once and ...
    • Create a New Leave Entitlement Pay Element

      Create a New Special Sick Pay Element  If your Special Pay Element does not give employees 10 days, you may need to create a new Special Pay Element that meets the Holidays Act and your employment agreements requirements or you may be able to replace ...
    • Salary Sacrifice Pay Element

      A Salary Sacrifice deduction can be set up to allow you deduct from an employee's pay before any tax calculations are made. Using this type of deduction will reduce a person's PAYE, Student Loan and Kiwisaver calculations and you should seek legal ...