We do hope this email finds you all well (as well as you can be).
With an extension to level 4 being announced in Auckland and the rest of the country remaining at level 2, here are the details of the third round of Government support.
Wage Support Subsidy (WSS)
A third round of wage subsidy support has been announced.
This covers the two week period 14th of September to 27th of September.
Applications for this round open on Friday 17th September. Some points to note are:
- The subsidy has the same 40% decline in revenue requirement.
- If Auckland (hopefully) goes to level 3 on 21st September this application will cover a period at both level 4 and level 3.
- If your business is able to operate again at level 3 then extra thought should be put into whether you will still suffer the required revenue drop over the period.
- If you are unsure you can apply on the assumption your revenue will drop 40% or more for the period, however once the period is over you must calculate what your exact revenue was, and if it turns out that you did not qualify the money must be refunded.
The deadline for the second round of wage subsidies closes at 11:59pm on Thursday 16th September.
Finally, you do need to wait 2 weeks between applications and you will receive an email saying when you can apply again. If you apply before the two weeks is up then the application will be rejected.
The link to apply for the wage subsidy is here https://www.workandincome.govt.nz/covid-19/wage-subsidy/index.html
Resurgence Support payment (RSP)
A second round of resurgence support payment has been announced. To qualify you must show a 30% drop in revenue for a 7 day period from 8th September.
Applications for the second round of resurgence support payment open on 17th September.
If you have not applied for the first round you can still do so.
Details on how to apply are here https://www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment/apply
Accounting for the WSS and the RSP
| For those of you sitting at home coding bank transactions, the RSP has GST on it, the WSS does not. This means you cannot use the same GST code for both these payments. |
You can either create a separate income code for each payment (GST for RSP and no GST for WSS) or you can manually override the transactions to force them to be correct.
For anyone who has an online system just let us know if you need help with this. For those for whom we do the GST already we will make sure it’s correct you don’t need to do anything.
We are here to help
We will still be working from home at level 3, so we can’t have any face to face meeting until level 2. However do let us know if we can be of any help with anything either to do with the government assistance or anything else. We are answering our emails and our ordinary phone should normally be answered (09-418-2729).
Take care
The team at Hounsell Accounting
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
