The wage subsidy has been extended to support employers and self-employed who have been significantly impacted by Covid-19. It is available to all businesses (including the self-employed, contractors and sole traders).
The extension is available after the current wage subsidy ends; from 10 June 2020 until 1 September 2020.
- To qualify for the wage subsidy extension an employer of self-employed business owner must have experience a revenue loss of at least 50% for the 30 days before applying for the extension, compared to the closest period last year.
- The weekly rates and amounts are the same as the original wage subsidy ($585.80 per full time employee who works more than 20 hours and $350 per part time employee who works less than 20 hours per week)
- The extension provides a further 8-week payment per named employee.
- It will be paid upfront to the employer as a lump sum
- You need to agree to certain obligations, such as to:
- Pass the subsidy on to your employees
- Retain your employees for the duration of the subsidy
- Do your best to pay your employees at least 80% of their normal pay
- Take active steps to mitigate the impact of Covid-19 on your business
- You cannot apply for the wage subsidy extension for an employee until their 12-week wage subsidy has finished. Applications open with Work and Income from 10 June 2020.
There is further information on Work and Income website here, and we will update this link once application opens.
Contact Tim Doyle or Jane Evans today for a no obligation phone call or meeting on 07 823 4980 or email us. Our office is in Cambridge, NZ, but distance is no problem. We have many international and national clients.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.