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Accumulus Newsletter - June 2020                                                                                                                                                                                             

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.

https://www.workandincome.govt.nz/covid-19/wage-subsidy-extension/index.html

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.

 

https://www.workandincome.govt.nz/covid-19/wage-subsidy/repayments.html#null

 

As ever if you have any questions please don't hesitate to give us a call, but to avoid a flood of calls as to where all the money is coming from:


-       the Treasury have found and cloned the chicken that laid the golden egg. The chickens are laying flat out (in a happy and stress free environment) at a secret free range organic farm in the Wairarapa. This is wonderful news for NZ, but for those of you that have a large stash of gold hidden, the prospects for an ever increasing gold price have now dimmed considerably.

 

Regards

 

The Team at Accumulus