The Government has recognised that some workers may not be paid while waiting for the results of a Covid-19 test.
The Covid-19 Short-Term Absence Payment (STAP) is a one-off payment of $350 to employers (to be passed on to the employee), or to the self-employed. The payment of $350 per eligible person can be claimed if:
- The employee (or you as a sole trader) needs to miss work to stay at home while waiting for a Covid-19 test, and
- The employee (or you as a sole trader) is unable to work from home
The STAP is in addition to the employee’s normal salary and must be included as gross wages in the pay run. PAYE, KiwiSaver, and any student loan payments will be deducted as usual.
For employers, the amount received is not considered to be income, and the payment to the employee cannot be claimed as an expense. The employer is in a tax-neutral position – the employee ends up paying the tax.
If you’re self-employed, the STAP is considered income and must be included in your tax return.
STAPs received and paid are not subject to GST.
You can apply now via WINZ.