As part of its Financial Support Package for businesses affected by COVID-19 the New Zealand government has allocated $5.1 Billion to a Wage Subsidy. This subsidy is available to all employers, sole traders and the self-employed.
Other Requirements
To qualify for the Wage Subsidy:
- your business must be registered and operating in New Zealand
This means that a business is:
- registered with the New Zealand Companies Office, and
- physically located in New Zealand, and
- their employees legally work in New Zealand
Sole traders are not required to be registered with the New Zealand Companies Office, but must have:
- a personal IRD number for paying income tax and GST, and
- government licences and permits for their business needs, and
- qualifications or registrations for their trade or profession
Sole traders must still meet the requirements to be physically located and legally working in New Zealand.
- your employees must be legally working in New Zealand
- the business must have experienced a minimum 30% decline in actual or predicted revenue over the period of a month when compared with the same month last year, and that decline is related to COVID-19
- your business must have taken active steps to mitigate the impact of COVID-19
- you must make best efforts to retain employees and pay them a minimum of 80% of their normal income for the subsidised period
Application Process
Small Businesses, Sole Traders, the self-employed and employers can apply for this subsidy through an online portal on the Work and Income website or using the below links.
Employer Application
https://services.workandincome.govt.nz/ess/employer_applications/new
Self-Employed (no employees) Application
https://services.workandincome.govt.nz/ess/trader_applications/new
What you need to fill in the application form
- your IRD number
- your business name
- business address
- the names of your employees
- your employee IRD numbers
- contact details for your business and your employees
The Ministry of Social Development will assess the application and email and text you to let you know if you application has been approved or declined.
If approved payments will be made within 5 working days however this might change due to the volume of applications.
How we can help
If you are still not sure if you qualify for the subsidy or how to apply contact us and we will be happy to assist. Contact us
If you have not yet been affected by COVID-19 but think you will in the coming months, we can help you plan for this.
