COVID-19 Wage Subsidy August 2021- how to apply
It’s available to all New Zealand businesses and self-employed people that meet eligibility criteria.
Eligibility Criteria
You must operate a business in New Zealand that employs and pays the employees named in your application.
- a registered business, sole trader or self-employed person (who may or may not employ other employees)
- a registered charity (incorporated under the Incorporated Societies Act 1908 and registered under the Charities Act 2005, or registered under the Charities Act 2005)
- an incorporated society (incorporated under the Incorporated Societies Act 1908)
- a non-government organisation, post settlement governance entity or, under specified circumstances, a commonly-owned group.
- A commonly-owned group is a business, for the purpose of applying for this subsidy, where one company within the group employs all the employees, who carry out their work at other companies within the group, and the other companies generate the revenue for the group (in order words, the employment and revenue generation functions are separated within the group). The company within the group that employs the staff must be the company that makes this declaration.
Business must meet the revenue decline test:
- your business is being or will be affected by the move to Alert Level 4 on 17 August 2021, and
- your business has had, or you predict will have, a decline in revenue that can be attributed to the effect the move to Alert Level 4 on 17 August 2021 has had on your business, and that is:
- at least a 40% decline over the period between 17 August 2021 and 30 August 2021 inclusive (this is the revenue test period), compared to a typical 14-day consecutive period of revenue in the six weeks immediately before the move to Alert Level 4 on 17 August 2021 (this is the default comparator period), or
- if your business has highly seasonal revenue, you must have at least 40% decline over the revenue test period compared to the same 14 consecutive days in 2020 or 2019 (this is the seasonal comparator period), provided you can demonstrate that the seasonal nature of your business makes it harder to meet the 40% revenue decline using the default comparator period than if your business was not of a seasonal nature, and
- the calculations and comparisons above cannot include any payments made to you from:
- this subsidy
- other COVID-19 wage subsidy schemes
- the Short-term Absence Payment
- the Leave Support Scheme
- the COVID-19 Essential Workers Leave Support scheme
- the COVID-19 Resurgence Support Payment
- the COVID-19 Small Business Cashflow scheme.
- You can include a fall in projected capital income as revenue for the purpose of an application if:
- your business is a research and development intensive “start-up” business, and
- you have no revenue other than seed or venture capital or Government funding, and
- you’re recognised by Callaghan Innovation as a legitimate research and development start-up business.
For commonly-owned groups:
- you must use the default comparator period to calculate the revenue decline test across the business, or
- you can use the seasonal comparator period to calculate the revenue decline test across the business.
Evidence is required:
You must prepare and retain evidence to support this declaration, such as records that demonstrate:
- how the decline in your revenue was attributable to the move to Alert Level 4 on 17 August 2021, and
- if you’re an employer that has highly seasonal revenue:
- the basis on which you claim your business to be of a seasonal nature, and
- how the seasonal nature of your business made it harder for your business to meet the 40% revenue decline using the default comparator period than if your business was not of a seasonal nature.
For more information visit
https://www.workandincome.govt.nz/covid-19/wage-subsidy/who-can-get-it.html#null
To apply use following link:
If you are an employer (less than 80 employees)
If you are self employed
If you have any question or require further assistance, please do not hesitate to contact one of your friendly staff members at Roberts and Associates Ltd.
We wish you all the very best during these difficult times, rest assured we are here to support you. If there is anything you need whether it be a friendly chat or answer to a difficult question, please give us a call or send us an e-mail.
Your team at Roberts & Associates Ltd
Michael Roberts 029-770-3121
Martina Evans 021-661-805
Shane Zhou 021-036-5231
Catherine Kemp 021-145-9994
