COVID – Wage Subsidy August 2021
With Government declaring country-wide lockdown, wage subsidy was made available to businesses affected by this recent COVID 19 lock down. Like with previous wage subsidies the purpose of this one is to support employers, so they can continue to pay employees and protect jobs for businesses affected by COVID.
Basic Rules:
- You can apply for a contribution towards the wages of your employees (or yourself, if you are self-employed) for a two-week period. You can’t apply for the same employee twice for the same period.
- You may also qualify for the COVID-19 Leave Support Scheme and the Short-Term Absence Payment available to employers and the self-employed. Just remember that you can’t get a Wage Subsidy for an employee for the period they’re covered by a Leave Support Scheme or Short-Term Absence Payment.
- You may however be able to get the Resurgence Support Payment (RSP) from Inland Revenue to help with business costs. This RSP is available simultaneously with the August 2021 Wage Subsidy, if you meet the required criteria. For ease of reference the links to each of these are provided further in this document.
The Eligibility Criteria:
The exact revenue decline criteria have not yet been published you must:
- operate a business in New Zealand that employs and pay the employees named in your application, and
- meet the revenue decline test (which is not yet published) set out in the declaration, and
- meet the other eligibility criteria set out in the declaration.
- The declaration lists all the eligibility criteria in full, and you need to agree to this when you apply. You must meet all these criteria to get the COVID-19 Wage Subsidy August 2021.
The declaration with the criteria will be available on MSD’s website from 9am on Friday 20 August 2021. We will update you accordingly.
Applications
- Can be made online from 9am on Friday 20 August 2021, and applications will be open for two weeks.
Payment rates
The Wage Subsidy August 2021 will cover a two-week period at the rate of:
- $600 a week for each full-time employee retained (20 hours a week or more)
- $359 a week for each part-time employee retained (less than 20 hours a week).
Links to other types of subsidies available are provided below.
Leave Support Scheme (LSS)
In summary: The LSS is available for employers, including self-employed people, to help pay their employees who need to self-isolate and can’t work from home.
This means your workers:
- can’t come into work because they are in one of the affected groups and have been told to self-isolate, and
- can’t work from home.
https://www.workandincome.govt.nz/covid-19/leave-support-scheme/index.html
Short-Term Absence Payment (STAP)
In summary: STAP is to help businesses keep paying eligible workers who:
- cannot work from home, and
- need to miss work to stay home while waiting for a COVID-19 test result (in line with public health guidance).
- There’s a one-off payment of $350 for each eligible worker. You can only apply for it once, for each eligible worker, in any 30-day period (unless a health official or doctor tells the worker to get another test).
- It’s also available to self-employed workers.
https://www.workandincome.govt.nz/covid-19/short-term-absence-payment/index.html
Resurgence Support Payment (RSP)
In Summary: The RSP is a payment to help support viable and ongoing businesses or organisations due to a COVID-19 alert level increase to level 2 or higher. If your business or organisation is facing a reduction in revenue due to an alert level increase, you may be eligible for the RSP.
Applications for the alert level increase announced on 17 August will open at 8am on 24 August.
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
