Now is also a good time to re-assess your eligibility for the Wage Subsidy Extension. Applications close soon on 1 September 2020.
COVID-19 Wage Subsidy Extension
A Wage Subsidy Extension payment is available to support employers, including self-employed people, who are still significantly impacted by COVID-19.
You can’t apply for the Wage Subsidy Extension for an employee until the original 12 week Wage Subsidy has finished.
Applications are open from 10 June 2020 and close just before midnight on 1 September 2020.
- You can apply to cover the wages of your employees over an 8 week period.
- You can apply for the Wage Subsidy Extension for your employee, even if you haven’t applied for the Wage Subsidy for them before.
- You can’t apply for the same employee twice.
- If you have applied for the Wage Subsidy or Leave Support Scheme for your employee, you need to wait until those payments are finished before you can apply for the Wage Subsidy Extension.
- You can’t receive more than one COVID-19 payment for the same employee at the same time.
More information is available on the work and income website.
COVID-19 Resurgence Wage Subsidy
Who is entitled?
New Zealand employers who have had, or expect to have, a revenue drop of at least 40% because of COVID-19, for a 14 day period between 12 August and 10 September, compared to a similar period last year are entitled to apply. The subsidy is so businesses can keep paying their employees.
You can’t receive more than one COVID-19 payment for the same employee at the same time. More information is available here.
COVID-19 Leave Support Scheme
This payment used to be called ‘COVID-19 Essential Workers Leave Support’ because it was only available to essential businesses. It’s now called ‘COVID-19 Leave Support Scheme’ because it’s available for all employers who meet the criteria.
A reminder, you must have employees who either:
- Have tested positive for COVID-19 and are required to remain off work until they’ve been cleared by a health professional to be released from self-isolation, or
- Have come into contact with someone who has COVID-19 and must self-isolate for 14 days (as required by Ministry of Health guidelines)
- Are at higher risk if they get COVID-19, and Ministry of Health guidelines recommend they stay at home while public health restrictions are in place
- Have household members who are at higher risk if they get COVID-19 and the Ministry of Health recommends the employee also remains at home to reduce the risk to them.
Generally, under Alert Level 3 people who are at higher risk if they get COVID-19 are recommended to stay at home.
Click here for more information.
Please contact us if you are unsure if you are eligible or if you need further information and don’t forget to read our blog about being prepared for wage subsidy audits.