The resurgence of COVID-19 and the strain it has caused on the economy can seem intimidating to a lot of small business owners who are currently struggling to stay afloat. If you’re a business owner or  manager, there’s a lot you can do individually to support your office staff and maintain a positive and healthy work environment to keep motivation levels up, thereby ensuring that your business can not only sustain itself during such a period, but even be profitable. Research has indicated that ‘happy’ employees are more likely to be productive, efficient and determined. It is also shown that employees who believe that their employers care about them, have been shown to be more engaged at work.

As part of our vision to help New Zealand’s small businesses, we are outlining a few ways for you as a business owner to help build a supportive work environment during these times and thereby boosting your employee’s mental well-being:

1. Pick-up the perks: Its always prudent to maintain a healthy work-life balance, and hence a good incentive would be to offer your employees regular health benefits such as a monthly massage, a gym membership, or even counselling sessions. This will not only ensure that your employees are healthy, but also happy and more engaged. It’s important to note here that you’ll have to pay fringe benefit tax on any non-cash benefits to staff unless it meets of the exemptions such as being provided on site or falling under the $300 per employee/ per quarter exemption. If you’d like more information on FBT, feel free to reach out to us.

2. Still working from home?: Make sure that you check in on your employees regularly, to ensure that they are doing well. Isolation can be stressful for a lot of people, and checking in on your employees, can positively reinforce your support towards them.

3. Spread the word about 1737: Let your staff know about the free and professional counselling that is available round the clock for anyone dealing with stress, anxiety or depression. The 1737 number and services are absolutely free for anyone living in New Zealand. Any time any of your staff or employees are feeling anxious and stressed they can call or text the helpline services to avail any professional advice, which might help them overcome these obstacles.

4. Leading by example: As the boss, a lot of your employees will be looking to you, to lead the way. It is hence necessary for you to remain calm, empathetic and compassionate, to understand the needs of your employees better, and thereby foster a stronger professional and personal relationship with them.

5. Write a policy: Looking after your staff, no matter what they’re going through, is really important. Put together a mental health and wellbeing policy that outlines how you will support employees who experience mental health challenges, and outline that they will always be treated fairly. For tips on how to put a policy together, read the Working Well Guide at mentalhealth.org.nz. This should help reinforce a sense of confidence in your employees, and will help them in being more vocal about any of the challenges or issues they may be facing.

6. Creating a list of goals: Helping your employees with making a list at the start of your day, can really help in giving them direction to focus on the tasks at hand. Categorise bigger tasks into sections, which lets them check every task one by one as the day progresses, while also keeping you updated on the status. Checking things off your list also helps in keeping you motivated and focussed towards your end goal.

7. Make sure your employees are not socially isolated: Encourage your employees to be in touch with friends and family, which can be can be a real stress-buster for them. By letting them talk to people, they will have the opportunity to process the events of the day, and receive support. It will also help them lighten their burden, and feel more relaxed.

8. Go for a walk: Exercise can be a great way to clear your mind from any stress or anxiety you may be experiencing at the time. A breath of fresh air will also help you feel more focussed, and will reduce the stress that isolation maybe causing, not to mention the additional health benefits of exercising. Encourage your employees to take exercise breaks, so they feel more relaxed and ready to focus on work.

9. Take Breaks: It’s easy for a lot of us to get caught up in our work, and forget to take our breaks, and sometimes we just simply end up eating lunch at our work desks. However, breaks are as important as the work you do. Letting yourself rest and reset will help boost your productivity and efficiency levels, and will help you be more focussed when you return. Make sure your employees are taking breaks and are well rested.

 These tips should help to cut down on the stress caused to your business by the COVID-19 resurgence. If there are any other issues that your business may be facing, you can reach out to our team at JZR by mailing us at info@jzr.co.nz or calling us on +64-9-972-2236.

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.

Important Note:
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 info@jzr.co.nz

The New Zealand government has worked hard towards releasing certain economic packages to help businesses in and around New Zealand to sustain themselves and to help in balancing the economic distress and the financial strain the country is currently experiencing as a result of the COVID-19 outbreak.

We’re outlining the three key relief packages released by the government to help the country deal with the outbreak economically and financially.

Wage Subsidy Scheme

The Wage Subsidy Scheme was introduced by the government shortly before the country entered a lockdown. The scheme was introduced with the agenda to supports employers and their staff to maintain an employment connection and ensure an income for affected employees, even if the employee is unable to actually work any hours.

The subsidy is $585.80 per week for a full-time employee (20 hours or more) or $350 per week for a part time employee (less than 20 hours).

The payment issued by the government will be made as a lumpsum, covering a period of twelve (12) weeks. This essentially means that employers will receive a payment of $7,029.60 for a full-time employee and $4200 for a part time employee.

Businesses that opt in for the wage subsidy scheme are required to note that anyone accessing the scheme must still undertake to pay their employees at least 80% of the pre-COVID income. In case that is not possible in cases where certain businesses have had no activity whatsoever during the shutdown period, must still pay the entire wage subsidy amount to each affected worker. Businesses must also undertake to retain employees during the period of the wage subsidy. In addition to this, the previous separate sick leave payment scheme has also been folded into the wage subsidy scheme.

To know more details regarding the eligibility criteria head on over to, click here.

It is also important to read the declaration before signing up for the wage subsidy scheme and ensure that you match the right criteria, since signing the declaration without meeting the eligibility criteria may have criminal implications.

To learn how to apply for the wage subsidy scheme, click here.

Mortgage Holiday Scheme

The mortgage holiday scheme was introduced by finance minister Grant Robertson in collaboration with New Zealand banks, who agreed to give their customers a six-month holiday from paying both the principal and interest on their mortgages, since most kiwis have their income affected by the COVID-19 outbreak.

However, people who opt for the six-month mortgage holiday will add their pending interest during the six-month scheme to the principal amount on their mortgage, which would end up increasing their loan amounts, or extending the period of repayment on these mortgages. It is important to note that the scheme only defers the payments, and that payments be paid once the scheme ends.

It is also to be noted that different banks will have approaches to implementing the scheme, and will have a different assessment criteria for every customer who approaches them based on their suitability.

It is hence prudent for every person, availing of the scheme to note what the terms and conditions that are being offered by the bank while implementing the scheme for one of their customers.

These are the list of banks which are working with the government on the holiday mortgage scheme:

• ANZ Bank
• ASB Bank
• Westpac
• BNZ

Business Finance Guarantee Loan Scheme

This $6.25 billion dollar scheme leverages the crowns financial strength, allowing banks to lend in order to ease the financial stress on solvent firms affected by the COVID-19 pandemic.

The scheme seeks to provide short-term credit to cushion the financial distress caused by the pandemic. Banks will continue using their own lending criteria when lending to SMBs/ SMEs, and will not be dictated by the government.

The scheme will include a limit of $500,000 per loan and will apply to firms with a turnover of between $250,000 and $80 million per annum. The loans will be for a maximum of three years and expected to be provided by the banks at competitive, transparent rates. The scheme is also only available to financially solvent firms (i.e. firms whose assets are greater than their liabilities).

The Government will also underwrite 80% of individual bank loans to SMEs, with banks stated to underwrite the balance 20% of it. This means that in the event of a loan default, the government will bear 80% of the losses that come with it, while banks will bear the other 20%.

These are some of key measures which have currently been undertaken by the government to help in the economic fight against COVID-19. We’ll be updating this blog space as and when updates are made on any of the above schemes and will detail the proceedings so you can be informed.

For any queries regarding the above schemes, or information regarding their application procedures, you can get in touch by emailing us your queries on info@jzr.co.nz or call us on +64-9-972-2236, and we’ll respond to you as soon as we can.