COVID 19 HR Support for Employers:
Use this calculator to help calculate how much you will receive from the COVID-19 Wage Subsidy
Frequently asked questions on the wage subsidy, eligibility and applications.
Use this worksheet to help you forecast and track requirements for the COVID-19 wage subsidy.
What support is available?
The government have initiated two forms of support for employers to provide immediate relief to those affected by COVID-19:
A wage subsidy to support employers to continue to pay staff while times are uncertain and income is affected.
A wage subsidy to support contractors or self-employed people while times are uncertain and income is affected.
This page is dedicated to the application for a wage subsidy for employers (see links below if you are a contractor).Employer Support
Who can get it?
If you're an employer (including employing just yourself under a limited liability company) and:
Your business is registered and operating in New Zealand for at least six months
Your employees all legally work in New Zealand
You have, or predict that you will, experience a minimum 30% decline in revenue and that decline is related to a specific change in alert levels
You have taken steps to mitigate the impact of COVID-19
You will use your best efforts to retain your employees and pay them at least 80% of their normal income for the subsidy period (12 weeks)
Charities, Not-for-Profit organisations, self-employed and pre-revenue businesses.
How much can your receive?
From the 20th of August, 2021 businesses can receive
$600 for the full-time employees per week; OR
$359 for the part-time employees per week.
The subsidy is paid as a lump sum and covers the entire 12 weeks per employee.
CALCULATE HOW MUCH YOU WILL RECEIVE HERE: WAGE SUBSIDY CALCULATOR
KEY THINGS TO CONSIDER
You can apply for the subsidy even if you have yet to evidence a drop in revenue but you are anticipating a drop.
However, you must experience a minimum 30% decline in revenue or you may be required to repay any amounts you receive.
At this stage, the subsidy is being provided on a HIGH TRUST basis. This means you will not need to evidence anything but WILL need to keep records for a future review.
The Ministry of Social Development will have the ability to check applications and verify the information at a later date. Any applications filed under false or misleading information can be subject to a fraud investigation.
You must use your best efforts to retain your employees and pay them at least 80% of their normal income for the subsidy period (12 weeks) or at least the amount of the wage subsidy you receive.
SEE OUR EMPLOYER FREQUENTLY ASKED QUESTIONS FOR MORE INFORMATION
Wage Subsidy Processes:
EMPLOYER PROCESS TO FOLLOW
Communicate to your employees
As the wage subsidy is being administered by Work and Income NZ, you must advise your employees you will be providing their personal details (Name, DOB, IRD Number and Employment Status.
You can reword the below communication to suit your business and send it to any employee you list on your wage subsidy application:
“Hi Team
I know this is such an uncertain time for everyone and in particular with the economic impacts of COVID19. I am sure many people will have concerns and I wanted to let you know the steps we are taking at BUSINESS NAME.
We do anticipate that our revenue will be impacted by COVID19 but hope this will be a temporary situation. We have taken the proactive step to pursue the recently announced government wage subsidy so we can lessen the impact on the business and give you all some comfort around your employment.
If we are successful in receiving the subsidy (which we believe we will), then we will use our best efforts to make no major changes to business operations for the next 12 weeks and will be in contact with you individually to consult with you on how this wage subsidy application impacts you.
To apply for this, we will need to include your name, DOB, employment status and IRD number on the government application. Please contact me immediately if you do not give permission for us to provide this information.
Whilst I know this is an uncertain time for many, we are doing all we can to mitigate the impact on you and the business. I encourage you to reach out to me if you have any questions or concerns.
Warm regards,
NAME”
Gather the required information
To complete the application form you will need the following information:
> IRD Number
> New Zealand Business Number (NZBN)
> Business contact details
> Employee details - Name, DOB, IRD number and status (i.e. more or less than 20 hours of work per week)
HINT: USE OUR WORKSHEET TO ENSURE YOU HAVE ALL THE REQUIRED INFORMATION: WAGE SUBSIDY WORKSHEET
Submit your application
Submit your Employer application here: EMPLOYER APPLICATION FORM
Receive subsidy
You should receive your subsidy payment within five (5) days but the processing time is currently within 24 hours.
HINT: CALCULATE HOW MUCH YOU WILL RECEIVE HERE: WAGE SUBSIDY CALCULATOR
Track your results
Make sure you continue to track your revenue and the wages you made to your employees so if you are audited in the future you have a record.
HINT: USE OUR WORKSHEET TO ENSURE YOU HAVE ALL THE REQUIRED INFORMATION: WAGE SUBSIDY WORKSHEET
KEY LINKS
NEED HELP?
Please contact us at info@corehr.co.nz if you need any assistance.