Wage Subsidy Extension
Day 2 of level 1
For businesses that qualified for a Covid 19 wage subsidy there is now a further 8 weeks of subsidy available, but the criteria are different.
The extension is aimed principally at businesses that continued to be hard hit through level 3 and subsequently eg especially hospitality and tourism.
The business is required to have had a reduction in turnover of 40% in at least a continuous 30 day period within the 40 days before the date of the application compared with the same period last year.
Application should not be made until 12 weeks have passed after the day the initial wage subsidy was received.
Repayments are expected where:
1. For the self-employed if your normal drawings are less than the subsidy then the difference "can be" repaid.
Mostly drawings are not consistent like wages so we suggest that you use the average weekly drawings over the last year or two years as the basis for this calculation.
2. Similarly if the subsidy is more than the wages of an employee for whom a subsidy is received then the excess must be used to subsidise the wages of other employees whose wages are higher than the subsidy or if this is not possible then any excess "should be" repaid.