Jobplus - Accounting treatment

hjr

Hi there,

Just wondering about the accounting treatment for Jobplus payments received from welfare, from an employer point of view. Is the payment received from welfare posted to the gross wage nominal and in effect netted off against the gross wage posted?

From Jobplus website:
Is income from this incentive taxable?
Income received by an employer from this initiative will not be considered as revenue/income for income or corporation tax purposes.

If however the payment received from welfare by the employer is netted off against wages paid, wouldn't this in effect make it a taxable payment, as the full value of the wage paid would not be deductible for income tax.

Just wondering if anyone has any ideas!

Thanks in advance

hjr

Perhaps the funds received from Welfare would be included on the Form 11 as Cash Introduced into the business, and thus wouldn't interfere with profit and loss account?

Any ideas?

Legend100

I would credit the wages nominal as you said.

But when you to do you tax calc (is it a sole trade or a company) you would reduce your table profit by the rebate amount which in effect gives you a full deduction for your wages paid.

Eg
Profit per accounts 100
Wages (net of job plus of 10) 60

Your taxable profit would be the 100 less the 10 so 90

Does this make sense?