If your business cannot operate because of Alert Level 4 restrictions or you will lose revenue, you can apply for the COVID-19 Wage Subsidy scheme to help keep paying your staff.
Businesses and self-employed people must expect a 40% drop in revenue to be eligible to receive the wage subsidy.
The wage subsidy is paid in a 2-week lump sum. You can get:
- $600 per week for each full-time employee
- $359 per week for each part-time employee
Businesses anywhere in New Zealand can apply for the Wage Subsidy Scheme if they are eligible.
As an employer you must pass on the full wage subsidy to your employee. If the wage subsidy is more than your employee's pay, you can continue to pay them at their normal rate.
Applications for the August 2021 Wage Subsidy will open on Friday 20 August 2021 at 9am and will be open for 2 weeks. You need to apply through Work and Income.
COVID-19 Resurgence Support Payment
The COVID-19 Resurgence Support Payment helps to cover wages and fixed costs for businesses who have been directly affected when there is an increase to Alert Level 2 or higher for a week or more.
To be eligible, your business must have experienced at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period, due to an increase in Alert Levels.
You can receive $1,500 per business plus $400 per full-time employee (FTE), up to 50 FTE.
The maximum payment is $21,500. If you're a sole trader, you can receive a payment of up to $1,900.
Applications for the COVID-19 Resurgence Support Payment will open at 8am on 24 August 2021. You need to apply through Inland Revenue. You can apply for both the COVID-19 Resurgence Support Payment and the COVID-19 Wage Subsidy Scheme if you meet all the eligible criteria.
Get in touch for advice on whether you're business is eligible and to make an application. To apply, CLICK HERE.
Richard Matson, Director, K3 Accounting - Richard@k3.co.nz.
