Extended Wage Subsidy Scheme
On 14 May the Government announced an eight-week extension to the current Wage Subsidy Scheme.
Who is eligible?
If your business has suffered, or is expecting to suffer, a revenue loss of at least 50% for the 30-day period prior to the application date, compared to the nearest comparable period last year, you will be eligible.
The extension also applies if you are self-employed, a contractor or sole trader.
How to apply
You will need to apply via MSD with applications open from 10 June to 1 September only.
The details we know so far
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The payment rates remain the same as the original Wage Subsidy.
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You can’t apply for the Wage Subsidy Extension for an employee until the current 12-week Wage Subsidy has ended (no double dipping).
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You will need to submit a new application for the Wage Subsidy Extension.
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The rules for the Wage Subsidy Extension are the same as the rules for Wage Subsidy applications made after 27 March (when the rules changed).
A reminder of the Wage Subsidy rules (post 27 March):
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You must try your hardest to pay staff at least 80% of their usual wages for the full 8 weeks.
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An employer cannot make an employee redundant during the 8-week period.
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You must pass on the entire subsidy received to your employee (however, if their ordinary wages are less than the subsidy amount, then you pay this amount).
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If you cannot pay your employee 80%, you must pay the employee at least the subsidy.
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You must take active steps to mitigate the impact of Covid-19 on your business.
More information is expected from the Government by 10 June.
For more information go to https://www.workandincome.govt.nz/covid-19/wage-subsidy-extension/index.html.
Questions?
If you have a question or need to work through how this will work for you and your business, give us a call.
RYHR team
Robyn Young - 021 119 1044 or robyn@robynyoung.co.nz
Sally Vertongen - 027 453 8871 or sally@robynyoung.co.nz
Helen McCaul - 021 914 106 or helen@robynyoung.co.nz