Business Advice on Covid by Mike
As you are aware, Auckland is in a Level 4 lockdown due to the resurgence of Covid-19. This started on Wednesday 18 August 2021. The government announced that Wage Subsidies and Resurgence Support Payments will be available to businesses suffering a 40% drop in revenue for the Wage Subsidy and a 30% drop in revenue for the Resurgence Support Payment. Even if you are self-employed, this applies to you. Further down in this email you will see how to apply for these payments. If you are unable to work because of the lockdown, then it will apply to you. If you are able to work in your bubble, then you need to work out whether or not you meet the drop in revenue criteria. If you are not sure, remember you can always pay this money back if it turns out you were wrong.
The Wage Subsidy for a full-time person (20 hours or more per week) is $600 per week and $360 per week for a part-time person. This payment applies when at Alert Level 3 or 4 for a week or more.
The Resurgence Support Payment is $1,500 plus $400 per full-time person per week. It is not 100% clear what the extra bit is for a part-time person but it looks like it might be the same amount. This payment applies when at Alert Level 2 and above for a week or more.
When you add it all up, this may be more than your actual normal income. However, this is what you are entitled to. As long as you meet the drop in revenue criteria and other requirements, one of which is having an NZBN number for the Resurgence Support Payment, you should be able to get these. Please read all the conditions applicable when applying.
Wage Subsidy applications opened yesterday, although they are not actually paying out yet. This is made through Work & Income. https://www.workandincome.govt.nz/covid-19/wage-subsidy/who-can-get-it.html. Here is the link where you apply - https://www.workandincome.govt.nz/covid-19/wage-subsidy/how-to-apply.html#null.
Resurgence Support Payment applications open on Monday morning. This is made through IRD. https://www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment
You do not need to apply for these straight away. But check the closing dates to make sure you do not miss out. You will need your IRD number and you may need to get your NZBN number before applying for the Resurgence Support Payment which you can do here: https://www.nzbn.govt.nz/
If you are operating as a sole trader with no employees on wages with PAYE deducted, you will need to apply as someone with no people working for you. If you are a sole trader with employees on wages, apply as if you have people working for you. If you are operating through a company, you need to apply as if you have people working for you. That person is you and you will be applying under the name of the company. In this case you will need the company IRD number and company NZBN number as well as your own IRD number as the person you are applying for. And use the company bank account to be paid to. All companies are given an NZBN number when they are incorporated. If you do not know your company NZBN number you could find it by using Search on the companies office register here. https://companies-register.companiesoffice.govt.nz/
If you have employees on wages with PAYE deducted, you are applying for them and the money has to be used to pay them. If you have contractors working for you, they will need to make their own applications and you could forward this email on to them, to help them with that.
Stay safe and please feel free to call me if you have any questions.