Because everyone is at home during the Level 4 lockdown, financial help is made available to businesses based on their circumstances. Check out the financial assistance schemes, including resurgence support payment and wage subsidy schemes.
All kinds of financial help can be paid during the highest alert level in response to COVID-19 except at alert levels 1 and 2.
“We have over $1 billion left over from the money set aside for wage subsidy scheme and resurgence support payments and if needed, the Covid-19 Relief and Recovery Fund has around $5 billion in it,” Finance Minister Grant Robertson said.
Let's look at the differences between a Wage Subsidy and Resurgence Support Payment (RSP) for businesses and employees.
|Wage Subsidy||Resurgence Support Payment|
Supports employers to pay employees and protect jobs for affected businesses
Supports viable and ongoing businesses or organisations due to an alert level increase to Level 2 or higher
Business is facing a decrease in revenue because of the alert level increase
|Who can apply||Employers, sole traders, self-employed||
Business or organisation who experienced a 30% drop in revenue over a 7-day period after an alert level increase and meet other eligibility criteria
Seasonal businesses had a 30% decline in income when compared to a similar week the prior year
|Where to apply||Ministry of Social Development||Inland Revenue|
|Frequency||Weekly payment||One-off payment|
No, provided that you don’t fall under the following:
Full-time employee retained 20 hours a week or more: $600 a week
Part-time employee retained less than 20 hours a week: $359 a week
Payments are given as a two-week lump sum that started last August 20 and is still ongoing until NZ remains to be in Alert Level 4.
Factors in determining RSP amount:
The RSP is calculated as $1,500 plus $400 per full-time equivalent employee or FTE (up to 50 FTE).
Maximum payment: $21,500.
Sole traders: up to $1,900.
Payments to businesses with low revenue will be capped at four times the amount by which their revenue has decreased during the past 7 days.
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