COVID-19 wages and resurgence subsidies
August 18, 2021
We hope you are coping with the lockdown to level four and are somewhat used to or resigned to these disruptions.
With the publicity around the situation, we’re sure you are aware that there is going to be Government support around the lockdown, with the re-introduction of the wages subsidy and resurgence support subsidy for the 17 August change in levels.
This subsidy is to cover payments of salaries and wages to employees in amounts of $600 (previously $585.80/week) for full time employees and $359 (previously $350/week) for part time (less than 20 hours/week) employees.
The subsidy appears to be available for a two week period. Applications open tomorrow from 9:00am, you can apply here
If you would like us to apply on your behalf, and we haven’t applied for you before, please let us know.
As more clarity around the amounts of the subsidy, its timing or extension arise, updates will be provided. It’s fair to say that although we may move from level 4 on Friday when the initial period ends, it won’t be to level one.
COVID-19 resurgence support payment
This subsidy is in addition to the wages subsidy and comes into effect when there is an alert level increase to level two or higher. This obviously applies to our current situation. This subsidy is to cover other expenses of the business but cannot be used to pay dividends or other similar payments. It only requires a 30% drop in revenue to the comparable period last year (wages subsidy requires 40%). Eligible businesses and organisations can apply to receive the lesser of:
- $1,500 plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTEs
- four times (4x) the actual revenue decline experienced by the applicant.
Applications for this subsidy are made via the IRD website, not MSD, and will open at 8:00am on 24 August.
The same applies as for the wages subsidy; if you would like us to apply on your behalf, and we haven’t applied for you before, please let us know. As always, if you have any questions, or you would like to discuss your situation, please just get in touch with us.
Contact us today for your no-obligation consultation.