A practical guide to Wage Subsidy support for New Zealand businesses
Available to New Zealand employers (including limited liability companies, registered charities, incorporated societies etc.), contractors / sole traders / the self-employed / partnerships etc.
Your business must be registered and operating in New Zealand.
Where claiming for employees, they must be legally working in New Zealand.
Due to COVID-19, your business must have experienced, or predict to experience, a minimum 30% decline in revenue.
Your business must have taken active steps to mitigate the impact of COVID-19.
You must commit to making your best efforts to both retain employees and pay them a minimum of 80% of their normal income for the subsidised period.
Wage Subsidy support was introduced rapidly in response to the Covid-19 Alert Levels 3 and 4. With no legislative framework underpinning the scheme it is important that employers understand the core principles to guide their decision making.
Those guiding principles are that claimants:
Apply their “best efforts” to ensure employees retain their employment.
Provide accurate information to support a valid claim.
Ensure that if circumstances change and they cease to be eligible in full or in part, that this is communicated with MSD
Apply their "best efforts" to pay employees at least 80% of their normal salary and wages where possible.
Act in good faith with their employees.
The key rationale for this initiative is that the Government wants to support businesses and provide job security to employees through this unprecedented time.
We can assist with:
Your wage subsidy application
Employee communication protocols
Providing an independent sign-off for your claim
Planning for the future