Is your business still being significantly impacted by COVID-19? Applications for the wage subsidy extension remain open until 1st September 2020. However, there are some conditions you should be aware of before applying.
- If you applied for the original 12-week wage subsidy then you must wait 12 calendar weeks from the date of receiving that before you apply for the wage subsidy extension, i.e. until the original subsidy period has ended. You cannot receive more than one COVID-19 payment for the same employee at the same time.
- You can still apply for the extension for employees even if you did not apply for the original wage subsidy for them.
- Your business must have experienced a minimum 40% decline in revenue for a continuous 30-day period due to COVID-19 in order to be eligible for the extension. The continuous 30-day period must have occurred in the 40 days immediately preceding the date you apply, but be no earlier than 10 May 2020. The 40% decline in revenue is compared to the closest period last year.
- As with the original 12-week wage subsidy, you must have taken appropriate steps to mitigate the financial impact of COVID-19, such as contacting your bank, claiming insurance, implementing your business continuity plan or seeking advice or support through official channels such as the Regional Business Partners Network.
- You should also be aware that the declaration for the wage subsidy extension is substantially different and more comprehensive than the declaration for the original subsidy: https://www.workandincome.govt.nz/online-services/covid-19/declaration-wage-subsidy-extension.html.
Please contact us if you have questions regarding how the wage subsidy extension applies to you, or if you need help in determining a comparable decline in revenue.
Visit Work And Income to fill out the online application form.