Questions and Answers
If I use my rainy-day fund for a month’s wages will I qualify for the COVID-19 Wage Subsidy?
I have built up a small fund in my business bank account for a rainy day. It would cover me for one month’s wages but I want to make sure I have income to restart the business, will I still qualify?
It is our interpretation at this point that you will still
qualify for the COVID-19 Wage Subsidy if you use your rainy-day fund to pay
wages. However, Revenue would encourage you top up your staff to their normal
full wages. The revenue’s guidelines state that “An employer that has been hit
by a significant decline in business but has strong cash reserves, that are not
required to fund debt, will still qualify for the Scheme but the Government
would expect the employer to continue to pay a significant proportion of the
employees’ wages."
Learn for about the scheme here.
Published 27/03/2020
Date published 27 Mar 2020 | Last updated 27 Mar 2020
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?
Local business focus
We specialise in supporting independent businesses and work with 6,246 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.
Come and meet us
We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 23 locations, meet with us online through video call software, or talk to us by telephone.
Switching is simple
Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.