The saying that “the only constant in life is change” is particularly due when it comes to tax. Tax legislation is constantly changing, and depending on your perspective, it could be either good or bad. But either way, it will impact on you as a business owner....
A new Resurgence Wage Subsidy Scheme payment has been announced by the government for employers and self-employed people who have been impacted by the recent resurgence of COVID-19.
What Is The Eligibility Criteria?
All New Zealand employers who have had or expect to have a drop in their revenues of at least 40% due to the resurgence of COVID-19 may apply for the scheme. Businesses must show a drop of at least 40% in their revenues for a 14 day period between the 12th of August to the 10th of September, compared to a similar period last year.
You may be eligible if:
- You are an eligible employer
- Your business must be operational in New Zealand
- Your employees must be working legally in New Zealand
- You must have a 40% decline in revenue for a two week period between the 12th of August and the 10th of September.
- Your business must mitigate the financial impact.
- You must retain the employees you’re applying for.
What Are The Payment Rates?
The subsidy aims at supporting business for a payment period of two weeks. The payment rates are as follows:
- $585.80 for people working 20 hours or more per week (full time rate)
- $350.00 for people working than 20 hours per week (part-time rate)
As per information released by the government, the MSD is currently aiming to pay the Resurgence Wage Subsidy Scheme within 5 working days of receiving an application. This is conditional to the fact that the details being submitted by the company match the details registered with Inland Revenue. Mismatches in the information being submitted may lead to delays in processing.
When Can You Apply?
Application dates for the scheme are open from 1pm on the 21st of August until the 3rd of September 2020.
You can’t receive the Resurgence Wage Subsidy Scheme if you’re currently receiving payments from previous schemes such as the Wage Subsidy Scheme, Wage Subsidy Extension Scheme or the Leave Support Scheme for an employee.
What Does This Mean?
If your business has been registered for any of the previous schemes, that is the Wage Subsidy Scheme, The Wage Subsidy Extension Scheme or the Leave Support Scheme, and you’re still within the payment period of any of the previous schemes mentioned here, you might not to be eligible for the Resurgence Scheme.
The previous Wage Subsidy Extension Scheme announced an 8 week payment period for all businesses or self-employed individuals that were approved by the MSD. This means that if you’re still receiving payments from the previous scheme’s 8 week payment period, you won’t be eligible to apply for the Resurgence Scheme.
However if your payment period from the previous schemes has already concluded or will conclude before the 3rd of September, you may still be eligible for the Resurgence Wage Subsidy.
When you apply, you’ll be asked to declare that you meet the criteria and agree to the obligations for the use of this payment. All payments will be subject to audits and reviews.
If you have any questions regarding the Resurgence Wage Subsidy Scheme or how to apply for it, you can get in touch with us on +64-9-972-2236 or email us on firstname.lastname@example.org
The Christmas shutdown time can be busy and eventful for most small businesses across New Zealand, who are preparing for the holiday season. To ensure that your Christmas break stress-free and for the best interests of your business, We thought it might be useful to...
Increasing sales is not only just an important marketing objective, but also an essential means of maintaining business viability, and potentially expanding your growth. There are many efficient and sometimes inexpensive ways of using marketing to drive your sales. In...
Stay Up to Date With The Latest News & Updates
Join Our Newsletter
Stay up to date with all of the latest news and insights related to your business. Sign up below and we promise to only send you content