With Auckland staying at Level 4 for another 2 weeks and Level 3 for most of the remainder of the country, we continue to be available to help you through any financial difficulties you might be experiencing, as well as providing our normal services.  Please see below for further information on the financial support available in relation to Covid-19.

Covid-19 Wage Subsidy First Round Applications Closing Soon

Applications will close for the first round of the Covid-19 Wage Subsidy for August 2021 on 2 September 2021. This covers the first 2 weeks of New Zealand being at Alert Level 4 from 17 August 2021.

If you have not applied for the wage subsidy already for this period and believe you are eligible, please apply as soon as possible to avoid missing out. If you would like assistance with your application or would like us to process your application for you, please do not hesitate to be in touch.

Applications will open for a second round of the Covid-19 Wage Subsidy for September 2021 on 3 September 2021.

As with previous subsidies, applications are open to both self-employed as well as employers.


FAQs

What is the Wage Subsidy?
The Covid-19 wage subsidy is a payment available to qualifying business which have had (or expect to have) a 40% drop in revenue due to the change in alert level. It comprises of $600 per week for full-time employees and $359 per week for part-time employees. It must be used to pay employee wages.

What is the Resurgence Support Payment
The Resurgence Support Payment (RSP) is a payment available to business which can show a 30% reduction in revenue due to the change in alert level. The payment is $1,500 (or 4x your weekly income, whichever is lower) per business plus $400 per full-time equivalent employee. It is to be used to cover general running costs of the business. The RSP is a one-off payment available for the period we are at alert level 3 or higher.

Can I apply for both the Wage Subsidy and RSP?
YES. You can apply for the both the Covid-19 wage subsidy and the Resurgence Support Payment.

Do I need to declare this as income?
While the IRD and WINZ websites say that this is non-taxable income, they also state that the expenses that the payments offset are non-deductible. The easiest way to ensure you are returning this correctly is to show the expenses paid in full and the payments received as income. This will also give you a correct comparison for future years of what the expenses and income were for this period.

What about GST?
There is no GST included on the Covid-19 Wage Subsidy as this is to offset wages.
There is GST included on the Resurgence Support Payment as this is to offset general business running expenses. If you are GST registered you should include the RSP as income in your next GST return.

For additional information on the Wage Subsidy and Resurgence Payments click here