The COVID-19 wages subsidy is now available for applications

Application for the wages subsidy for the current level four COVID-19 lockdown is now open and can be made here. You need to decide who your application is for in determining the category of application as between “if you have people working for you” or if you don’t. As before, in applying, you need the name, date of birth and IRD number for each person for whom you’re applying, as well as whether they work more than or less than 20 hours per week.

To qualify for the subsidy, your business must have been affected by the move to alert level four AND your business has had, or you predict will have, a decline in revenue that can be attributed to the effect the move to alert level four on 17 August 2021 has had on your business.

The decline in revenue must be at least a 40% decline over the period between 17 August 2021 and 30 August 2021 inclusive (this is the revenue test period), compared to a typical 14-day consecutive period of revenue in the six weeks immediately before the move to alert level four on 17 August 2021 (this is the default comparator period).

The application requires you to prepare and retain evidence to support this declaration, such as records that demonstrate how the decline in your revenue was attributable to the move to alert level four on 17 August 2021. Emphasis is placed on the requirement that the decline in revenue be attributable to the move to alert level four and no other reason, including seasonality, end of contract or any other cause.

Another requirement in applying is that before making an application, you must have taken active steps to mitigate the impact of the move to alert level four on 17 August 2021 on your business activities. This includes (but is not limited to) engaging with your bank, drawing on your cash reserves as appropriate, or making an insurance claim (emphasis added). These requirements are included in the declaration you agree to when making application.

Assuming you meet these requirements and are comfortable being able to demonstrate them, the application made will provide payment of $600 a week for each full-time employee retained (20 hours a week or more) and $359 a week for each part-time employee retained (less than 20 hours a week).

If you’re not sure about whether you qualify or should apply, please contact us. Remember, too, that the resurgence subsidy will also be available to apply for from Wednesday next week. This may be especially relevant to businesses that don’t feel they qualify for the wages subsidy.