With Auckland is now in level 4 lockdown most our businesses will have to close, for those who can, will be able to work from home. It is our sincere prayer that you take good care of yourself and family.
Tomorrow will be the is the first day that businesses are able to apply for the Wages Subsidies August 2021 since the government announced raise of alert level for Auckland and rest of the country on Monday.
- The Wage Subsidy Scheme (WSS) allowseligible employers anywhere in the country can apply for the WSS if they expect a loss of 40% of revenue as a result of the Alert Level increase announced. The WSS rates have been increased to reflect the increase in wage costs since the scheme was first used in March 2020. Businesses will be eligible for $600 per week per full-time equivalent employee, and $359 per week per part-time employee. The Wage Subsidy will be paid as a two-week lump sum. Applications open on Friday 20 August with the first payments usually available after three days.
- A Resurgence Support Payment (RSP) is availableif firms incur a loss of 30% of revenue as a result of the Alert Level increase. The RSP is worth up to $1500 plus $400 per full-time equivalent employee, up to a maximum of 50 full-time employees (so up to a total of $21,500).
- The Leave Support Scheme (LSS) 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. More information is available here.
- The Short-Term Absence Payment (STAP)provides a one-off (once per 30 days) $350 payment for workers who must miss work due to a Covid-19 test and cannot work from home. Further information about this payment is available on the MSD website.
For Income tax purposes, the above amounts received are treated as exempt for income tax purposes, but the corresponding expenditure is non-deductible.
For GST purposes, the amounts received are exempt, except for the RSP which needs to be included in the GST return. This is due to that the funds are applied to business related expenditure, you would be able to claim back GST in the usual way.
We strongly advise that you consider your circumstances carefully and ensure you understand all of the terms and conditions under the eligibility section. Both MSD and IRD can review and/or audit the information provided and may take action in the event that the information provided is false or misleading.
Please feel free to get in touch with us if you wish to discuss or require assistance with any of the business support mechanisms mentioned above.
We hope you and family stay safe and keep business fit.
Your faithful team at HCCA Chartered Accountants
