The government has put together a wage subsidy package for employers that are affected.
If your business cannot operate because of Alert Level 4 restrictions or you will lose revenue, you can apply for the COVID-19 Wage Subsidy scheme to help keep paying your staff and protect jobs.
Businesses and self-employed people must expect a 40% drop in revenue to be eligible to receive the wage subsidy.
The wage subsidy is paid in a 2 week lump sum. You can get:
- $600 per week for each full-time employee
- $359 per week for each part-time employee
Businesses anywhere in New Zealand can apply for the Wage Subsidy Scheme if they are eligible.
As an employer you must pass on the full wage subsidy to your employee. If the wage subsidy is more than your employee's pay, you can continue to pay them at their normal rate.
If your business has to physically close but your employees can work from home, and you are not eligible for the Wage Subsidy Scheme, you need to keep paying them their usual salary or wages.
Applications for the August 2021 Wage Subsidy are now open. You need to apply through Work and Income.
To Apply
You will need:
- your IRD number
- your business name
- your business address
- your New Zealand Business Number (NZBN)
- the names of your employees
- your employee IRD numbers
- contact details for your business and your employees.
New Zealand Business Number (NZBN)
NZBN is a globally unique 13 digit number.
To find your NZBN, if you are a company: type your business name in the search bar on this website
If you are a sole trader, partnership or trust you will need to apply for a NZBN here. You will need a New Zealand driver licence or NZ passport.
We can help with this application process if needed. Please contact us.
More Information
There is further information on Work and Income website here.
You can also download the factsheet for wage subsidy and leave payments from here.
Contact Us
Contact Tim Doyle or Jane Evans today for a no obligation phone call or meeting on 07 823 4980 or Contact 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.
