Applications For The Wage Subsidy August 2021
Applications for the wage subsidy opened this morning – Friday 20 August 2021.
To meet the criteria, your business must meet the revenue decline test, which effectively determines that:
- Your business is being or will be affected by the move to Alert Level 4 on 17 August 2021 and;
- Your business has had, or you are predicting will have, a decline in revenue that is attributable to the effect the move to Alert Level 4 on 17 August 2021;
- To qualify, a business must have had a reduction of at least 40% over the period 17 August 2021 to 30 August 2021 inclusive (This is known as the revenue test period ), when compared to a typical 14 day consecutive period of revenue in the 6 weeks immediately prior to the move to Alert Level 4 on 17 August 2021 (this is known as he default comparator period);
- You must prepare and retain evidence to support any application, such as records that demonstrate how the decline in your revenue was attributable to the move to Alert Level 4;
- Be careful in your analysis of how you determine a reduction in revenue. Businesses that operate with direct debit facilities and or cash are easier to measure potential reductions than businesses that operate via an invoice system and can effectively determine when an invoice in raised. However, special concessions are needed in determining whether work in progress can be invoiced or not because staff cannot work on a product or customers won’t respond to queries;
- Special needs to be considered if an invoice has been raise but a customer cannot commit to pay within your agreed credit terms and your income will reduce within the 17 August 2021 to 30 August 2021.
Payment rates:
The Wage Subsidy August 2021 will cover a two week period at the rate of:
- $600 a week for each full-time employee retained (20 hours a week or more);
- $359 a week for each part-time employee retained (less than 20 hours a week).
The above represents a generalised summary of the terms and conditions and if you have a specific query to the wage subsidy, them please contact us directly.
https://www.workandincome.govt.nz/covid-19/wage-subsidy/how-to-apply.html