On 8th February 2020 the government announced a new Covid-19 Short Term Absence Payment (STAP) to support employers and self-employed workers.

Available from:  9th February 2020.  

Where from:       Work and Income

Value:                  A one-off payment of $350.00.  

GST:                    Not required or payable on payment received.

Criteria:              Employers for employees, and self-employed workers, who:

                            - need to miss work to stay at home while waiting on a Covid-19 test result,

                            - cannot work from home.

Self Employed: 

STAP is considered as income, and is to be included on individual tax return.

Employers: 

For any amount passed on to the employee is "excluded income", so is not included as income or claimable as a deduction on their income tax return.  The employee pays tax on the amount they receive.  Any excess amount not passed on to an employee is taxable and must be included on the employer's income tax return.

The STAP is paid on top of an employee's normal salary or wage for the pay period it is received in, with PAYE and their other normal deductions, ie: student loans, kiwisaver, etc.