We hope you are going steady under Alert Level 3 and staying positive as much as you can. We understand these can be trying times however if you need some support the Government has just announced a Covid-19 Resurgence Wage Subsidy scheme.
We have outlined the two Wage subsidy schemes currently in play below being the Wage Subsidy Extension (Existing) and Resurgence Wage Subsidy (New).
Just to recap, both subsidies will be paid at a flat rate of $585.80 for people working 20 hours or more per week (full-time rate) and $350.00 for people working less than 20 hours per week (part-time rate).
IMPORTANT TO NOTE:
You cannot receive more than one COVID-19 payment from MSD for the same employee at the same time. Hence it is important that if you have yet to apply for the Wage Subsidy Extension that you look to meet this criteria first and if you do (meet the Extension criteria), that you apply for this first.
If you don’t, then you should consider applying for the Resurgence Wage Subsidy.
The reason for this is because the Wage Subsidy Extension can apply to cover wages for an 8 week period whereas the Resurgence Wage Subsidy will cover a period of two weeks.
If you have already applied for the Wage Subsidy Extension, it is important to note the date of your application and the date the subsidy ends. The reason being you can’t have a crossover of periods for which the subsidy Extension and Resurgence is paid for.
It is possible that if your wage subsidy extension comes to an end prior to or between 21 August and 3 September, then if you meet the Resurgence criteria, then you can apply for this.
- NEW: Covid-19 Resurgence Wage Subsidy Scheme (2 week)
Applications can be made from 1pm on 21 August 2020 to 3 September 2020. It is open to employers throughout New Zealand.
To get the Resurgence Wage Subsidy, employers who have had or expect to have a revenue drop of at least 40% because of COVID-19 can apply. This revenue drop must be for a 14 day period between 12 August to 10 September, compared to a similar period last year. The subsidy is so businesses can keep paying their employees.
- EXISTING: Covid-19 Wage Subsidy Extension Scheme (8 week)
This is an excellent option if eligible and if you qualify as it is an 8 week extension
If you have not already, you may be able to apply for the 8-week COVID-19 Wage Subsidy Extension if you still need help to pay your staff, and yourself. It’s available to be applied for between 10 June and 1 September 2020. To get the Wage Subsidy Extension you will need to have experienced a minimum of a 40% drop in revenue for a 30-day period in the 40 days before applying (starting no earlier than 10 May 2020) when compared to a similar period last year.
Please remember the criteria below per MSD which applies for both the Extension and Resurgence…
Before you apply please consider your circumstances carefully and make sure you understand all of the obligations in the declaration that you are agreeing to. MSD can review and audit the information you provide and will take action if false or misleading information is provided.
Please also note that the Wage Subsidy Extension and Resurgence cannot be paid for an employee that has been made redundant, or employees who have been given a notice of redundancy (unless the redundancy notice is withdrawn).
The Wage Subsidy Extension and Resurgence is to help you keep paying your employees and you must pass it on to those you claim for. Your obligations under employment law continue to apply.
Most importantly, we are all in this together and we know we can beat this. Please contact us if you need information, assistance, someone to hash ideas around with or support through these difficult times. We want to help and look forward to hearing from you.
Please remember to check out our COVID – 19 information in the newsroom for useful tips and important information.
Most importantly look after yourselves and family.