The Wage Subsidy Scheme (WSS).
The Wage Subsidy will be available to help eligible businesses throughout New Zealand continue paying staff and protecting jobs.
To reflect increased wage costs, the payments have been increased to $600 for full-time employees and to $359 for part-time employees. This will be open to applications from 9am on Friday 20 August 2021, with applications initially open for two weeks.
If you qualify for the wage subsidy and apply for it, you need to remember that -
You cannot take any action with respect to restructuring and/or redundancy during the period you receive the subsidy.
If you don’t qualify for the wage subsidy then you need to continue to pay your employees unless they explicitly agree to a variation in hours/remuneration.
If that is the case then get them to confirm the variation in writing before you reduce hours/pay.
If you cannot afford to pay your employees but they agree to use accrued leave then you can pay them accrued leave for the period they agree to. You cannot force your employees to take this time as accrued leave, it can only be done by consent and agreement.
If you do not qualify for the wage subsidy but cannot afford to continue paying your employees at full or reduced pay, and they don’t agree to a variation of their employment then we recommend that you obtain legal advice about your options.
We recommend that you keep records and evidence of loss of profits.
The Resurgence Support Payment (RSP).
The Resurgence Support payment will be available to any business or organisation in New Zealand that experiences at least a 30% drop in revenue or a 30% decline in capital-raising ability over a 7-day period, due to a COVID-19 alert level increase of level 2 or higher.
This will be open to applications from 8am on Tuesday 24 August 2021 and will be available until one month after a nationwide return to Alert Level 1. The becomes available from 8am of the 24th.
The Leave Support Scheme (LSS).
The Leave Support payment provides a two-week lump sum payment of either $585.80 per week for full-time workers or $350 per week for part-time workers who must self-isolate and cannot work from home.
The rates increase to either $600 per week for full-time workers or $359 per week for part-time workers from Tuesday 24 August 2021.
The Short-Term Absence Payment (STAP).
The Short-Term Absence payment provides a one-off (once per 30 days) payment of $350 for workers who must miss work due to a COVID-19 test and cannot work from home.
The rate increases to $359 from Tuesday 24 August 2021.
The Small Business Cashflow Scheme (SBCS).
The Small Business Cashflow Scheme supports small to medium businesses and organisations struggling with a loss of actual revenue due to COVID-19.
Applications are open until 31 December 2023.
For more information please visit: www.IRD.govt.nz/Covid-19