The COVID-19 wage subsidy scheme designed to help those impacted by the pandemic and lockdown has been extended and New Zealand’s premier accounting professionals Tutbury & Associates Limited are here to help business who need help navigating all the ins and outs of applying for the subsidy.
The wage subsidy was created to support employers, including sole traders, impacted by COVID-19, and face laying off staff or reducing hours.
The wage subsidy is designed to cover the wages of employees over a 12-week period. “However, you can not apply for the same person twice, if self-employed and have several streams of income you’re only covered for one” also if you have ‘passive’ eg Airbnb you don’t qualify either, and if paid out, expect to have to pay that back, advises Kelly Tutbury, Accountant and Managing Director at Tutbury & Associates Limited.
There is also the COVID-19 Leave Support Scheme available to employers. But you can't receive both COVID-19 payments for the same employee.
To meet the criteria you must be an eligible New Zealand employer, your business must be in New Zealand, your employees must legally be working in New Zealand, you must have a 30% decline in revenue, you must mitigate the financial impact and you must retain the employees that you are applying for.
Following this, the wage subsidy has been extended from the 10 June 2020 until 1 September 2020 so employers can keep paying their employees. “You cannot apply for the wage subsidy extension for an employee until their 12-week wage subsidy has finished,” adds Kelly. Applications open from 10 June 2020.
To qualify for the extension your business must have had, a revenue loss of at least 50% for the 30 days prior to application, compared to the closest period last year. “This will cover 8 weeks per employee from the date you put in your application,” says Kelly.
If you have any questions or issues about the wage subsidy or the wage subsidy extension will mean for you or your business, don’t hesitated to contact the friendly gurus over at Tutbury & Associates Limited. Tutbury & Associates Limited can help you with your accounting needs and liaise directly with the Inland Revenue on your behalf.
About Tutbury & Associates Limited:
Tutbury & Associates Limited has worked hard to build their reputation of excellent customer service by working interactively with their clients and making sure that their clients get value for money. They are ideal for ideal for trades people, or anyone who wants to grow their business.
Contact Tutbury & Associates Limited:
Phone: 07 576 2194
Address: 23 Myres Street Tauranga