Extended Wage Subsidy Scheme - Eligibility changes
On 5 June the Government announced eligibility changes to the Extended Wage Subsidy Scheme.
Who is eligible?
Currently, employers must have at least a 50% drop in revenue. This will be adjusted to at least 40% for a continuous 30-day period. The 30-day period needs to be within the 40 days before you apply, but not before 10 May. You must also compare this to the closest period in 2019.
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.
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