Is your business ready for a wage subsidy audit?
Given the amounts spent by the Government and high level of public scrutiny of the scheme, businesses should be ensuring their eligibility under the scheme for both the original 12-week wage subsidy and the current 8 week wage subsidy extension. Businesses and individuals should look to repay amounts claimed if they no longer believe they are entitled under the scheme. Claims on the basis of an anticipated revenue loss under the original scheme are of greatest risk. Now is the time to ensure your anticipated revenue loss did eventuate, and if not take steps to repay.
What steps have you taken to document initial and ongoing eligibility for the wage subsidy?
Assuming you are comfortable that your business continues to be eligible to make a claim under the scheme it is important to now make sure that your documentation supports this. Having a note on the back of an envelope is not sufficient and could make the audit process much harder. A detailed memo that covers each part of the eligibility criteria from your declaration should be completed.
This might include for example:
- The required revenue decrease and comparative periods;
- How you might have determined high growth;
- Your interpretation of revenue
- How you mitigated the impact of COVID-19;
- What consultation you had with your funders and business advisors;
- What payments were made to employees;
Confidence in your eligibility is important, and this process should give you this. In addition, you will potentially make any audit a lot quicker and smoother.
Please contact Kendons should you wish to discuss what this means for your business, or for further clarification and support.