If you are self employed (or self employed and an employer), but not in the essential services the likelihood is that you should be making a claim for a subsidy.
Even businesses running essential services eg petrol stations may have a claim because their turnovers are likely to be down as a consequence of Covid precautions, the lockdown and reduced traffic flows. Kiwifruit growers could also be claimants if labour shortages mean that some of the crops don't get picked and processed.
There are two potential claims:
- for a wage subsidy (business has experienced or anticipates that for at least one month between January and June 2020 it will experience a downturn in sales compared with the prior year of more than 30% as the result of Covid 19),
- for a leave subsidy (for people having to self isolate that cannot work from home).
The detail of what the requirements are to qualify are given on the website. Where there is the prospect of claiming on either, the wage subsidy presently looks the more generous. It is for 12 weeks (one time only) as against 2 weeks for the leave subsidy (repeat claims can be made). The application forms were in place before the level 4 call so things could change.
Recipients of the employer subsidy are obliged to pay out a minimum of 80% of an employee's normal wage for the duration of the subsidy – this may be more or less than the subsidy amount but the expectation is that the whole subsidy should be paid out.
The forms are very simple to complete and the same form is used for either subsidy depending which of the reasons you select for making the claim.
Please note the employer form should be used for both employees and owners of the business, so for a company shareholder employees and wage employees are all listed on the one form and for a partnership the partners and employees are all on the same form.
The payments are $585.80 per week for full time $350 per week part time (20 hours per week classifies as full time for the subsidy). Payments are made in full up front so a single full time wage subsidy amounts to $7029.60.
Please contact us if you have any doubts or questions regarding claims - by email and we will call you back as we are working from home.