The IRD strongly advises that where possible, employers pass the wage subsidy amount to their employees as their normal pay cycle. I.e. if employees are paid weekly then it is advised to continue this cycle and pay 1/12th of the wage subsidy each week for the duration of the 12-week period (as well as any potential wage top-up added by the employer). Paying the full wage subsidy in one lump sum could have tax consequences for the employees. These include inflating their income for the tax year ending 31st March 2020 (if the lump sum is made by this date), affecting their marginal tax bracket, and affecting their qualification for the Independent Earner Tax Credit as well as Working For Families Tax Credits, Child Support, Paid Parental Leave entitlements and Student Loans.