August 2021 COVID Support Updates
We've all been living with Covid for some time now, but that doesn't change the impact that a Covid Lockdown has on our businesses.
With the latest nationwide increase to Alert Level 4, the government has reinstated a variety of Covid support packages.
The Wage Subsidy returns but with a few changes since its last use in February earlier this year. Key changes to the Wage Subsidy include:
Employers are eligible for the Wage Subsidy if they expect a loss of 40% in revenue as result of Alert Level changes over the period 17 August 2021 to 30 August 2021 in comparison to a similar period within the previous 6 weeks.
The Wage Subsidy has increased to $600 per week per full time employee and $359 per week per part time employee.
If you are eligible, you can apply for the Wage Subsidy from Friday 20th August 2021, with the first payments estimated to be three days following the application.
The Wage Subsidy will be paid as a two-week lump sum.
There has been no change to the requirement to make reasonable efforts to pay 80% of the wages to staff members, and the government are operating the same high trust model as in the past.
We completed a large amount of wage subsidy claims for clients last year, but we feel that this subsidy claim should be completed by clients in person. Over the coming days we will upload information and screen recordings to give you all the information you should need to complete the claims.
Click here for more information about the wage subsidy, and to start your claim on MSD's website.
Resurgence Support Payment
The Resurgence Support Payment has been reinstated with the following changes:
Eligible businesses throughout New Zealand are able to apply for the Resurgence Support Payment if at least a 30% loss of revenue is incurred as a result of the increase in restrictions.
The Resurgence Support Payment continues to be $1,500 with an additional $400 for each full-time equivalent employee and up to a maximum of 50 full-time employees - a maximum payment of $21,500.
Inland Revenue are yet to advise us on when applications will be open.
Meeting with Clients
In light of the recent Alert Level changes, our face-to-face meetings have been temporarily disabled until further notice. Our practice is still operating from home at our regular hours, and virtual meetings are still in effect. If you have any questions, please don't hesitate to get in touch.