Applying for the Wage Subsidy Extension
If you have suffered a revenue loss of at least 40% (previously 50%) over a 30-day period then you may be eligible for the Government’s Wage Subsidy. The eight-week Wage Subsidy Extension is available from now until 1 September 2020.
Most NZ businesses are eligible to apply including:
- The self-employed
- Sole traders
- Registered charities
- Incorporated societies
It is up to the business to apply, not the employee and so multiple applications are accepted.
It is worth noting that you will be required to sign a declaration when applying. The declaration is aimed at ensuring the subsidy does, indeed, go to the employee concerned, that you agree to use best endeavours to pay at least 80 per cent of the employee’s salary or wage, and that they remain employees for the eight-week duration of the subsidy.
The Extension covers full-time and part-time employees, along with casual employees. Mind you, they must be employed at the time of the application, and who would have been expected to work over the duration of the Wage Subsidy Extension period.
- Full-time employee (20 hours or more a week), the subsidy is $585.80 (gross) per week
- Part-time employee (less than 20 hours a week), the subsidy is $350.00 (gross) per week
Applying for the subsidy
To apply, you will need to go to the Work and Income website. The information provided here is detailed, designed to cover all situations. This includes what to do when an employee resigns during the eight-week subsidy period and like-wise, what is to happen when a subsidised employee is made redundant.
As the website notes: “The subsidy is paid as a lump sum and covers 8 weeks per employee from the date you submit your application.” The sooner you apply for the Wage Subsidy the sooner you can assist your employees. It is up to you, the employer, to make the actual payments to the employees (along with their “usual” pay).
If you would like to find out more about the wage subsidy extension please give your small business accountant a phone call on 04 915 5966.
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