He Rau Timotimo Kōrero No.17Wenerei 24 Mei 2023Who Pays GST under Pay Parity Tēnā anō koutou e te whānau All our funding from the Ministry of Education has GST included, which needs to then be paid to Inland Revenue. For those Whānau that are participating in Pay Parity, the “top up” portion of funding that goes into the centralised payroll system to meet the cost of their Kaimahi salaries covered by Pay Parity also has GST included. GST and the March Funding Drop In the March funding drop those Whānau who were part of Pay Parity had 65% of their Kaupapa funding directed into the centralised payroll system and an additional variable portion of 5% to cover casual Kaimahi and any top ups to salaries for example. The Whānau received the 30% balance of their Kaupapa funding along with other funding such as Equity and Targeted funding. In addition, Whānau also received the GST for their full level of Kaupapa funding and will need to pay this full amount to Inland Revenue. The National Trust paid the GST component of the “Top Up” portion of funding in the centralised payroll system. This is different from what was communicated to some Whānau, which was that the Trust would cover the GST for the 70% of funding. It is important for Whānau to know that they need to cover the GST for their full Kaupapa funding from the March funding drop and that this funding has been passed through to Whānau. GST and the July Funding Drop and Going Forward From July for those Whānau who are participating in Pay Parity, the Trust will pay the GST on the 65% and the variable portion along with the Top Up funding that goes into the centralised payroll system. This will be deducted ahead of the balance of the Kaupapa funding that will go to Whānau. Whānau will then pay the GST only on the balance of Kaupapa funding that they will receive. This will be the process going forward – the national Trust will cover the GST on the funding for the centralised payroll system and Whānau cover the GST on the balance of their Kaupapa funding. We hope this avoids any confusion for Whānau. We have attached a working example below for you to see the difference between the March and July funding drops: Nā mātou te Roopu Utu Taurite If you have any kōrero or feedback on our pānui please feel free to send to comms@kohanga.ac.nz. |