Wage Subsidies

So, my employee received a government "award" for $4500 which goes towards to her wages. I pay it out of pocket, as an employer, and at the end of her contract, the government reimburses me for that award.

Is that considered income and should be accounted as such? I feel like it should be as it is a benefit to me as an employer, but at the same time the award is under my employee's name, not mine.