The Government has announced two support mechanisms to help businesses cope with downturns experienced as a result of the latest COVID-19 resurgence. The COVID-19 August 2021 Wage Subsidy is now available and the Resurgence Support Payment (RSP) will be available on 24 August 2021.
COVID-19 Wage Subsidy
To be eligible, your business must:
- Be affected or expect to be affected by the move to Alert Level 4 on 17 August 2021
- Have had or expect to have a 40% decline in revenue between 17 August 2021 and 30 August 2021 when compared to a typical 14 day period in the six weeks prior to the move to Alert Level 4.
- Other comparison criteria are available for seasonal businesses, find out more here.
The same rules apply as previous wage subsidies, you must:
- Name your employees in your declaration
- Retain your named employees for the duration of the wage subsidy period
- Use your best endeavours to pay your employees 80% of their salary or wages, and pay at least the amount of the wage subsidy to your employees
- Repay your subsidy if your business is no longer eligible.
The wage subsidy has increased since previous payments. It is set at a flat rate and paid to employers as a lump sum to cover two weeks per named employee:
- $600 for people working 20 hours or more per week
- $359 for people working less than 20 hours per week.
How do you apply?
Please visit the Work & Income NZ website to apply now.
COVID-19 Resurgence Support Payment
When COVID-19 Alert Levels are increased higher than Level 1 the Government activates the COVID-19 Resurgence Support Payment (RSP). To be eligible, your business must have incurred a 30% loss of revenue as a result of the Alert Level increase on 17 August 2021.
Applications for this support payment open at 8am on 24 August 2021.
If your business is eligible you can apply to receive the lesser of:
- $1,500 plus $400 per full-time equivalent employee up to a maximum of 50 full-time employees
- Four times the actual revenue decline experienced by your business.
How do you apply?
Please visit the IRD website for more information.