You made it! Level 1 is up and running.
So today’s post is to update you on:
- Wage Subsidy Revisited
- Small Business Cash Flow Loan Scheme reminder
- Wage Subsidy Extension
- Support for Commercial Rent disputes
Wage Subsidy Revisited
With the 12 week period now coming to an end, we recommend that you revisit the basis on which you applied for the subsidy in the first place .. particularly if you were able to trade through OR you had your employees remotely working. Remember that part of the criteria was that anticipated turnover was going to be down by 30% or more so you will need to check and confirm that in fact that is the case.
Audits are starting to occur more regularly now so you need to ensure that you are prepared if they come knocking. Check out this blog for more.
Small Business Cash Flow Loan Scheme (SBCS)
This scheme was to expire on 12 June but that has now been extended to 24 July.
For more details, click here to go to the SBCS website.
To setup a myIR account, click here to go to the IRD website and then click register in the top right hand corner.
Wage Subsidy Extension
This scheme is now open and allows for a further wage subsidy to be applied for to get an extra 8 week extension to the already paid out 12 weeks. It is intended to assist those businesses that have been impacted most by COVID-19; for example, the tourism and hospitality sectors but this does not limit other businesses applying.
However some points to note:
– You cannot apply until the period of 12 weeks is up from when you first applied for the subsidy. If you can’t remember when you first applied then it will be 12 weeks from when you received the subsidy. Now it gets confusing when (1) the wrong subsidy was applied for and/or (2) multiple applications were done so you will need to talk to us if any of these apply.
– To qualify you must have experienced a minimum 40% decline in actual revenue in the 30 days before you apply, when compared to a similar period last year and the decline must be related to COVID-19. The definition of revenue is outlined and is technical depending on your business so you need to be extra careful to ensure you meet this.
– You will need your employees consent in writing to apply for the extension as their information will be shared amongst government departments. If they don’t consent you cannot apply for them. Here is a link to the Privacy statement that should be shared with employees.
– Remember none of your employment conditions have changed unless you have already agreed in writing with your employees so you need to pay them as normal.
– Self-employed and shareholder employees are able to apply.
– Here is the link to the declarations that will be made as part of the application which are more extensive than the initial wage subsidy. We suggest that you read these before starting the application process.
For more details and to apply, click here to go to the COVID-19 Wage Subsidy Extension website.
Support for Commercial Rent Disputes
Maybe a little too late as arrangements may have already been done but the Government introduced temporary measures to assist in dispute resolution between landlords and tenants over commercial leases effected due to COVID-19. If you are in this position, click here to read about the options and then you will need to seek legal advice if not done so already.
So that is all to cover off for now .. remember to check out our blog .. Click here to check out previous blog posts