Covid-19 Update – 19 August 2021

Yesterday we watched the 1pm Press Conference hoping there would be further clarification regarding this round of Wage Subsidies given the wider repercussions for New Zealand than the last lockdown in February which predominantly affected the Auckland Region. This was not the case, so at this point, we are using the eligibility period from February for this newsletter
With applications for the wage subsidy opening at 9am tomorrow (20 August), here is a summary of what you need to know to see if you and your business qualify for the latest round of Business Support –

 

Wage Subsidy Scheme
The Wage Subsidy Scheme will be opening for eligible business from 9am Friday 20th August and will be open for 2 weeks, at this stage. To be eligible for the Wage Subsidy, a business must have, or anticipate, a 40 percent drop in revenue. The period to review this drop in revenue against has not yet been defined but, if we look back to the February lockdown, this was over a 14-day period for the proceeding 6 weeks.
Businesses will be eligible for $600 per week per full-time equivalent employee, and $359 per week per part-time employee. The Wage Subsidy will be paid as a two-week lump sum. Payments may be made within three days.
To apply, you will need to follow the link below, and you can also sign up for updates about support services and when the applications have opened –
https://www.workandincome.govt.nz/covid-19/wage-subsidy/

 

Resurgence Support Payment
To be eligible for the Resurgence Support Payment, business must experience a 30% reduction in revenue OR capital raising ability over a 7-day period as a result of the change in Alert Levels. This will pay businesses the lessor of –

• $1,500 plus $400 per full-time equivalent (FTE) employee, up to a maximum of 50 FTEs ($21,500) or

• four times (4x) the actual revenue decline experienced by the applicant.

These will open for application from 24 August 2022 and you can apply by following this link from Inland Revenue –
https://www.ird.govt.nz/covid-19/business-and-organisations/resurgence-support-payment

 

Provisional Tax
For those entities with a standard March balance date, the first instalment of 2022 provisional tax is due for payment on 28 August 2021. We have sent out most tax slips, and will send out the balance in the next few days. Tax Slips, if not posted or emailed from your client manager, have been sent from Tax at Gilmore Taylor (tax@gilmoretaylor.co.nz).
If you have not received a tax slip and are expecting one, please contact either the director you normally deal with or your client manager.

For those worried about making the payment, we can look at either setting up a payment plan with Inland Revenue or financing the payment through Tax Traders. This will need to be organized before 28 August to reduce interest and avoid penalties.

Please contact us if you’d like to discuss the options available.

You can contact our team via email or on the numbers below:
Chantal Gilmore – 0274 855 223
Phillipa Taylor – 0274 887 570
Danny Douglas – 027 680 4139
Karen Bell – 021 971 111

Recent Blogs

COVID-19 Update | Level 4 NZ

Sick leave changes

Recent Client Stories

Arco Group Ltd

Unichem Buchanans Pharmacy

    Newsletter Signup

    Chartered AccountantsXero Gold PartnerMYOB BankLinkFarm FocusFiguredNorthland New ZealandMYOBWorkflowMax Certified AdvisorTax Traders Advantage PartnerNZ Chambers of CommerceSpotlight Reporting