Thankfully we are now in Level 2 and back to some kind of normality. We have plenty of space in our office to social distance so all of our staff members have returned to work.
For client meetings we are going to arrange online meetings where possible but face to face meetings will also available when needed. We do ask if you’re coming into the office to wear your face masks.
There are a few updates to Government Support Packages which we’ll detail below plus a reminder of other support packages in place.
- Change in criteria for eligibility requirements for the Resurgence Support Payment.
- Wage Subsidy – Information required to support Self Employed or Employer status in applications to MSD
RESURGENCE SUPPORT PAYMENT (RSP) – Change in Criteria
The Minister of Finance has announced a change to the eligibility criteria for the Resurgence Support Payment (RSP). Businesses and organisations that have been in operation for at least one month prior to the Alert Level increase on 17 August 2021 will be eligible to apply for the payment. The original criteria was six months.
This change applies to the current round of the RSP and any future ones, meaning business which have been in operation since 17 July 2021 may now be eligible for this RSP. They will still need to meet all of the other criteria for the RSP. Note that this is not a new round of the Resurgence Support Payment – but it means some businesses who were not previously eligible for this round may now be eligible.
The change in criteria will become active from 8am on 9 September 2021 on Inland Revenue’s website. Newly eligible businesses must wait until that date before applying under this new criteria. Inland Revenue will contact businesses whose applications under the current RSP activation were previously declined because they had been in business less than six months, to let them know they may now be eligible and can submit a new application.
The RSP is available if firms incur a loss of 30% of revenue over a 7 day period as a result of the alert level increase. Eligible businesses and organisations can apply to receive the lesser of:
- $1,500 plus $400 per full-time equivalent employee (FTE), up to a maximum of 50 FTEs, or
- 4 times (4x) the actual revenue decline experienced by the applicant.
Applications open: 8am on Wednesday, 24 August
How to apply: You can apply through your MyIR account or we can apply on your behalf. It is possible that the Government could decide to activate the RSP multiple times if there are multiple alert level increases from level 1. Businesses and organisations can apply for the RSP each time that it is activated as long as they meet the eligibility criteria.
For more information on the Resurgence Support Payment click here Resurgence Support Payment
WAGE SUBSIDY – Information required to support Self Employed or Employer status in applications to MSD
IRD are supporting the Ministry of Social Development with validating employer and self-employment status for taxpayers who apply for the Wage Subsidy that Work and Income administer. As part of IRD’s supporting activity, IRD are aware that some of clients have recently commenced business, and may not yet have filed GST or Income tax returns which would normally substantiate active self-employment.
Work and Income will be suspending some applications and messaging customers who have applied for the Wage Subsidy as a sole trader and IR have been unable to confirm self-employed status.
They will be messaging these customers and advising that if they wish to continue with their Wage Subsidy application, they will need to contact Inland Revenue and provide the following information:
- IRD number and name of self-employed person the application is for
- Description of the business/self-employment activity
- Hours worked in the business
- PDF copies of bank statements from 1 June 2021 to 17 August 2021
- Minimum of four PDF copies of invoices issued or statements of account received for work performed from 1 June 2021 to 17 August 2021 to verify their business income and expense activity.
Taxpayers are being encouraged and directed to send this information to Inland Revenue via their myIR account, using the subject header/reference “WSSAUG21 self-employed status verification”.
Work and Income won’t take any further action on this application until your clients have contacted Inland Revenue. When Inland Revenue has reviewed the information, they will notify Work and Income directly.
Wage Subsidy August 2021 #2 – The Wage Subsidy Scheme allows eligible employers anywhere in the country to apply for the Wage Subsidy if they expect a loss of 40% of revenue as a result of the alert level increase announced on 17 August. More details of the eligibility criteria will be on the declaration that you’ll need to complete when you apply. Businesses will be eligible for $600 per week per full-time equivalent employee (20 hours or more per week) and $359 per week per part-time employee. The wage subsidy will be paid as a 2-week lump sum.
Applications open: 9am on Friday, 3 September for two weeks with the first payments usually available after 3 days. This is open for two weeks and closes at 11.59pm on Thursday 16 September. You are still able to apply for this if you have already applied for the first tranche.
How to apply: A link to the application form will available from 9am on Friday here Wage Subsidy Application Form
OTHER SUPPORT OPTIONS
SMALL BUSINESS CASHFLOW LOAN SCHEME
- If you employ 50 or fewer staff, you may be able to apply for the Small Business Cashflow Loan Scheme. This is a one-off 5 year loan. You can borrow a maximum of $10,000 plus $1,800 per full-time-equivalent employee within your business.
When applying for the loan, you need to be able to declare that your business is viable. Your business must have experienced a minimum 30% decline in actual or predicted revenue over the period of a month, compared with the same month last year.
Applications are open until 31 December 2023 through myIR. If your business does not have a myIR account, you will need to create one to apply.
Loans will be interest free if they are paid back within 2 years. The interest rate is 3% for a maximum term of 5 years. More information is available here Small Business Cashflow Scheme
LEAVE SUPPORT PAYMENT
- The Leave Support Scheme (LSS) provides a 2-week lump sum payment of either $585 per week for full-time workers, or $350 per week for part-time workers, who must self-isolate and cannot work from home. More information is available here Leave Support Payment
NB: Employers cannot get the COVID-19 Wage Subsidy August 2021 and Leave Support Scheme simultaneously for the same employee, at the same time.
SHORT TERM ABSENCE PAYMENT
- The Short-term Absence Payment (STAP) provides a one-off (once per 30 days) $350 payment for workers who must miss work due to a COVID-19 test and cannot work from home. This payment is also available to self-employed workers. Further information about this payment is available here Short Term Absence Payment