This email summarises the government support available for this current level 4 lockdown.
There will be two types of Government Support Available
1. The Wage Subsidy Scheme (WSS) which is available nationally when there’s a regional or national move to Alert Levels 3 and 4 for a period of seven days and helps eligible businesses keep paying staff and protects jobs. Eligible employers anywhere in the country can apply for the WSS if they expect a loss of 40 percent of revenue as a result of the Alert Level increase announced yesterday. The WSS rates have been increased to reflect the increase in wage costs since the scheme was first used in March 2020. Businesses will be eligible for $600 per week per full-time equivalent employee, and $359 per week per part-time employee. The Wage Subsidy will be paid as a two-week lump sum.
Applications open on Friday 20 August with the first payments usually available after three days.
The wage Subsidy Scheme is administered by the ministry of Social development. https://www.workandincome.govt.nz/
2. The Resurgence Support Payment (RSP) is a payment to help support businesses or organisations with one-off costs due to a COVID-19 alert level increase to level 2 or higher. This is available to eligible firms at the same time as the WSS. A Resurgence Support Payment (RSP) is available if firms incur a loss of 30 percent of revenue as a result of the Alert Level increase. The RSP is worth up to $1500 plus $400 per full-time equivalent employee, up to a maximum of 50 full-time employees (so up to a total of $21,500).
The Resurgence Support Payment is administered by the Inland revenue department https://www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment/apply
Applications will open 7 days after the change in alert level which will be Wednesday the 25th of August
How do I measure the loss of revenue?
A business or organisation must have experienced at least a 30% or 40% drop in revenue over a 7-day period, due to the increased COVID-19 alert level. This decrease in revenue is compared with a typical 7-day revenue period in the 6 weeks prior to the increase from alert level 1
Revenue refers to income generating activity by a business or organisation. Standard accounting principles relating to income recognition apply.
- For a cashflow business, such as a restaurant, this is likely to be the daily takings.
- For a business that invoices clients, this will be the activities the business carries out that would entitle it to bill or invoice either immediately or at a later date.
We are here to help
We are all working from home and available to help, do give us an email if you need any assistance with anything, especially if you are unsure if you will meet either the 30% or 40% income reduction or if you are uncertain of your responsibilities or eligibility around this support.
Take care
Disclaimer
The material on this website is for the benefit and information of clients. The items are in the nature of general comments only, and are not to be used, relied or acted upon without seeking further professional advice. Hounsell Accounting Limited accepts no liability for any errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice
