Support for small businesses through a payroll management subsidy is to continue for a further two years.
Revenue and Small Business Minister Stuart Nash says Cabinet has agreed to extend the subsidy for professional payroll intermediaries who manage an employer’s PAYE obligations, after the previous government decided to end the scheme in early 2018.
Inland Revenue currently offers a payroll subsidy of up to $10 per pay-run to listed PAYE intermediaries who manage the income tax obligations of eligible employers.
The Taxation (Annual Rates for 2017-18, Employment and Investment Income, and Remedial Matters) Bill currently before Parliament proposed repealing the subsidy on 1 April 2018. However feedback during the Select Committee stage was critical of the move. The announcement today reflects the Committee’s recommendations.
“The subsidy was introduced in 2006 as a way to encourage small businesses to use the services of payroll professionals to handle their PAYE obligations. The support from Inland Revenue allows small business operators more free time in order to focus on growing and operating their business,” says Mr Nash.