Last week the Government announced support for businesses during the August 2021 lock down. The assistance available and links for more detailed information follow:
The Wages Subsidy Scheme (WSS)
- $600 per week for full time employees
- $359 per week for part time employees
- Applications open from 9am Friday 20 August 2021, initially for a 2-week period
- Your business revenue declines by at lest 40% over the period 17 August to 30 August 2021 compared to a typical 14-day period in the six weeks immediately prior to Alert level 4
- For the period of the subsidy use your best endeavors to pay at least 80% of each employee’s ordinary wages or salary
- For detailed information go to COVID-19 – Work and Income
The Resurgence Support Payment (RSP)
- Your business revenue declines at least 30% over a 7-day period due to Covid -19 alert level 2 or higher
- The RSP can be claimed as well as the WSS if your business is eligible
- You can apply for the lesser of:
- $1,500 + $400 per full time employee, up to a maximum of 50 FTEs, or
- Four times (4x) the actual revenue decline
- Applications open from 8am Tuesday 24 August 2021, open until one month after return to Alert Level 1
- The Government may decide to activate the RSP multiple times if there are multiple alert level increases from level 1 – but that is not guaranteed
- For detailed information go to COVID-19 Resurgence Support Payment (RSP) (ird.govt.nz)
The Leave Support scheme (LSS)
- Two-week lump sum of either $585.80 per week for full time or $350 per week for part time employees who must self-isolate and cannot work from home
- Rates will increase to $600 for full time employees and $359 for part time employees from Tuesday 24 August 2021
- For detailed information go to COVID-19 Leave Support Scheme – Work and Income
The Short-Term Absence Payment (STAP)
- One off payment of $350 ($359 from Tuesday 24 August 2021) for workers who miss work due to a COVID-19 test and cannot work from home
- Can apply only once every 30 days
- For detailed information go to COVID-19 Short-Term Absence Payment – Work and Income
The Small Business Cashflow Scheme (SBCS)
- Applications are open until 31 December 2023
- Eligibility:
- 50 or fewer FTE employees
- In business for more than 6 months, the business must be viable
- At least 30% decline in revenue due to Covid-19 over 14-day period in the 6 months before applying, compared to the same 14 day period one year ago
- Loan must be used for business purposes, not for personal drawings or payment of a dividend
- Loan amount $10,000 + $1,800 per FTE, maximum loan is $100,000
- 5 years to repay the loan, interest rate is 3% pa
- Loan is interest free if repaid in full within 2 years
- For detailed information go to COVID-19 Small Business Cashflow Scheme (SBCS) (ird.govt.nz)
If in doubt about what Government assistance your business may be eligible for contact Q2 Ltd. We are here to help.