covid 19 update

COVID Assistance Update 2

With today’s announcement of the lockdown continuing ..

here are the key points to note for the Wage Subsidy application.

1. here is the link to the website where you can apply
2. we cannot apply for you .. you need to do it
3. you will need a NZBN (NZ Business Number) .. if you are a company you already have one and you can access this via the Companies Office website. If you aren’t, then you need to apply for one by clicking here
4. employees must consent to be included in the wage subsidy application as the information you provide will be shared around other government agencies .. for transparency this should be in writing or other method that can be retained
5. employment law still prevails .. you still need to pay your employees and cannot force them to use any type of leave. If you are changing their employment arrangement the proper process must be followed
6. You must prepare and retain evidence that supports all of the declarations that you make as part of the application
7. Active steps must have been taken to mitigate the financial impact of COVID-19 .. again undefined this time around but such things as using cash reserves, securing additional funding from the bank, activating the business continuity plan etc etc are all noted as active steps. Key here is the (4) above – document and provide evidence of what you have done to mitigate. Here is a link to our Free Weekly Cashflow Template which should be used as part of the evidence
8. MSD will be checking employee numbers against IRD records, so make sure the employee records held at IRD are correct
9. Need to work out who is full time (20 hours or more per week) and who is part time (less than 20 hours per week)
10. Revenue decline .. basically now if you can work you will have a 40% decline. Remember if you are on a retainer or funded then that counts as revenue and obviously if you can work from home then need to do the calculations first. Again all needs to be documented fully how the calculations were compiled to establish that the criteria was met
11. the declaration is long and involved so make sure you understand what you are declaring to
12. this is not a free “lolly” scramble .. if you apply and receive the subsidy, and then don’t meet the criteria you will need to pay it back. Suggestions have been made that a blanket “please provide the documentation required under the declaration” will be made to all of those that get the subsidy

We are working on information relating to the Resurgence Support Payment so will get that out as soon as it is ready.

Again, if we can be any assistance please don’t hesitate to contact us.