PKF - COVID-19 Resurgence Wage Subsidy

The Government has announced a new payment - the Resurgence Wage Subsidy. A small but welcomed support package for businesses who continue to experience cash-flow stress so they can keep paying their employees.

It’s a two-week payment for businesses who meet the criteria.

Applications can be made from 1pm on 21 August 2020 to 3 September 2020. It is open to employers throughout New Zealand.

 

Who can get it:
New Zealand employers who have had, or expect to have, a revenue drop of at least 40% because of COVID-19, for a 14 day period between 12 August to 10 September, compared to a similar period last year can get it.

 

Eligibility Criteria:

• You must be an eligible employer who is significantly impacted by COVID-19.
• Your business must be registered and operating in New Zealand.
• You must have had or expect to have a revenue drop of at least 40% for a 14 day period, between 12 August to 10 September 2020, compared to a similar period past year. The decline must also be related to COVID-19.
• Your business must have taken active steps to mitigate the financial impact of COVID-19.
  • This could include:
    • drawing from your cash reserves (as appropriate)
    • activating your business continuity plan
    • making an insurance claim
    • proactively engaging with your bank
    • seeking advice and support from:
      
      • the Chamber of Commerce
      • a relevant industry association
      • the Regional Business Partner programme 

 

• You must retain the employees named in your application for the period of the Resurgence Wage Subsidy.

• Employers are required to agree that, for the duration of the Resurgence Wage Subsidy, they will retain the employees the subsidy was paid for.

   

Payment rates and processing times:
The subsidy is for 2-weeks from the day you submit your application, and will be paid at a flat rate of:

• $585.80 for people working 20 hours or more per week.

• $350.00 for people working less than 20 hours per week

 

When to apply:

• You can apply for the Resurgence Wage Subsidy from 1pm on 21 August until 3 September 2020.
• You can't receive the Resurgence Wage Subsidy if you are already getting other COVID-19 payments like the Wage Subsidy, Wage Subsidy Extension or the Leave Support Scheme for an employee.
• The online application process and information will be similar to the Wage Subsidy and Wage Subsidy Extension applications.
• You'll be asked to declare you meet the criteria and agree to the obligations for the use of this payment. All payments will be subject to audits and reviews.

 

We understand it is tough and it will get tougher over the next few months. You are not alone, PKF can help with the following to mitigate the impact of COVID-19 on your business:

• Understanding cash flow is critical for business confidence – we can complete a cash flow forecast for you.
• Thrive in the ‘new normal’ – we are current facilitating with Business Focus Plans via Regional Business Partners.
• Make the hard calls – we can assist with restructuring your business.
• Being alone in business is hard. Just need a chat – give us a call.

 

The PKF office at 100 Moorhouse is open for business. The PKF team are here to help. You can call us on the office numbers or get in touch by email.

 

sonya.hazlett@pkfgf.co.nz

 

100 Moorhouse Avenue, Addington, Christchurch