COVID 19 Support Available

Wage Subsidy Scheme (WSS)

This has been re-instated. Main rules are (requires decline in revenue that can be attributed to the effect of the move to Alert Level 4 on 17 August 2021):

• Business has had (or will have) at least a 40% decline in revenue over the period between 17 August 2021 and 30 August 2021 inclusive, compared to a typical 14-day consecutive period of revenue in the six weeks immediately before the move to Alert Level 4 on 17 August 2021.

• You must prepare and retain evidence to support this declaration, such as records that demonstrate how the decline in your revenue was attributable to the move to Alert Level. Let us know if you need assistance with this.

• Before making an application, active steps must be taken to mitigate the impact of the move to Alert Level 4, including, (but not limited to) engaging with your bank, drawing on your cash reserves as appropriate, or making an insurance claim.

• Entitlement is $600 per week for fulltime employee and $359 per week for part-time employee - initial payment is maximum of 2 weeks per employee.

• For the period the subsidy is received, use best endeavours to pay at least 80 % of each named employee’s ordinary wages or salary and pay at least the full amount of the subsidy to each named employee

• Repay any amount of the subsidy that is not required for these purposes and that cannot be used to support paying and retaining affected staff. Note: This is different from the subsidy paid last year and now you have to repay if it is not used or the 40% test is not met).

• Wage and leave subsidies are passed on to employee as part of the employee’s normal wages. All employee deductions, including PAYE, KiwiSaver, Student Loans, child support are made as normal.

• Required to discuss your application with your named employees and gain their consent to information sharing. You are also required to confirm that the named employees have consented (in writing, if practicable) to have their information provided to the Ministry of Social Development; and other agencies, as well as advise named employees they can request access to information employer has provided in the application - all of this part is for Privacy Act rules).

GST - the employer will not be liable for GST on the wage subsidy received from MSD.

Application is made through the MSD website: https://www.workandincome.govt.nz/covid-19/wage-subsidy/index.html

Resurgence Support Payment (RSP)
A business or organisation must have experienced at least a 30% drop in revenue over a 7-day period, due to the increased COVID-19 alert level (decrease in revenue is compared with a typical 7-day revenue period in the 6 weeks prior to the increase from alert level 1 and drop is based on businesses entitlement to bill or invoice).

Businesses are able to claim for both the Wage Subsidy and Resurgence Support Payment.

The RSP is calculated as $1,500 plus $400 per FTE (up to 50 FTE). The maximum payment is $21,500. Sole traders can receive a payment of up to $1,900.

• Employees working up to 20 hours per week are considered part time (0.6 Full Time Equivalent - FTE), Employees working 20 hours or more per week are considered fulltime (1.0 FTE)
Businesses with low revenue will have their payment capped at four times (4x) the amount their revenue has dropped over the 7-day period. For example, if your business has 3 FTEs, they would be entitled to $2,700. However, if their revenue drop was $500, their RSP payment would be limited to $2,000.

• Relevant record-keeping is again required including dates of the affected revenue period and comparison period, amount of revenue earned in each period and how the revenue drop has been calculated.

• Applications for the Resurgence Support Payment are made through a myIR account (tax agents can apply for the RSP on behalf of their clients - provided they have recorded authority).

• A NZBN number will be required. For a Company, this can be found on the Companies Office website. For self-employed, a sole trader, a partnership or a trust, a NZBN can be applied for on the NZBN website.

• The RSP is subject to GST (on the basis that GST will be claimed on expenses paid). Payments received under the RSP are not subject to income tax. Expenditure funded by payments under the RSP is not deductible.

• Applications can be made at https://www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment/apply

• For both applications note that applicant details may be published once approved. This includes the applicant name, business or organisation name, payment amount and alert level escalation period.

Other Support:

Leave Support Scheme (LSS)
The COVID-19 Leave Support Scheme (used to be 'COVID-19 Essential Workers Leave Support') is available for employers, including sole traders, to pay their employees who must self-isolate and cannot work from home.

Short-Term Absence Payment (STAP)
The COVID-19 Short-Term Absence Payment is available for businesses, including self-employed people, to help pay their workers who cannot work from home while they wait for a COVID-19 test result.

Small Business Cashflow Scheme (SBCS)
The Small Business Cashflow Scheme is a loan to support small to medium business and organisations struggling with a loss of actual revenue due to COVID-19.