• Tax Professionals

Wage Subsidy Package - Government Auditing Businesses

In light of the recent news articles surrounding a number of businesses abusing the wage subsidy package, the Government's fraud investigations unit has begun undertaking audits and will ask businesses to pay back money and could consider criminal prosecution if wrongdoing is found.  

Wage Subsidy - Record Keeping Requirements

In light of the above - businesses should protect themselves by striving to keep good records and evidence of their decisions around their use of the wage subsidy package. We recommend that businesses consider utilising these new resources:

  • Collect and retain evidence of eligibility for these schemes, in case audited later.

  • Make notes of discussions with their employees and with Government departments - you are required to have some sort of written approval from your employees even  if you temporarily change the rate of pay or hours i.e. the payment of wage subsidy amounts

  • If practical, use a separate bank account (that is not in overdraft or a loan account) for receiving and making these payments and keep accurate records.

  • Use of payroll software or spreadsheets which allows you to create a separate line item in employee payslips to show the payment of the wage subsidy amounts and remaining pay top-ups (if applicable). 

Please contact us today if you need any further advice around good record keeping. We can assist you by preparing the necessary employee documentation or provide software to protect your businesses from any future audits risks. 

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