COVID Special Update - 3 March 2021

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In this special edition of Business Update we take a look at the different support options available to businesses due to COVID-19 restrictions. From Resurgence Support Payments through to Leave Support Scheme, there are a variety of financial support options to help your staff and business through lockdown.

Short-Term Absence Payment

We want all our employees to do the right thing if they are symptomatic - stay home and get a test, don't risk bringing the virus to work. The Short-Term Absence Payment is a brand new scheme that has been designed to help you keep paying the employees wages should they need to take a Covid test and then stay home and wait for the results. The payment is a flat rate of $350 per worker, and can be applied for once in a 30-day period. For more information and to apply head to:
Short-Term Absence Payment - Work & Income

COVID-19 Leave Support Scheme

Some employees may need to stay at home longer, for example if they have the virus or are taking care of people who have been asked to self-isolate. The COVID-19 Leave Support Scheme is available for employers to help pay their employees who need to self-isolate and can't work from home. This is paid out as a two-week lump sum at a flat rate of $585.50 per week for full time employees or $350 per week for part time staff. To check eligibility rules and to apply visit:
Leave Support Scheme - Work & Income

Resurgence Support Payment

The Resurgence Support Payment (RSP) is available to businesses who's revenue has been down 30% as a result of being in Level 2 or above. You can apply for the lesser of $1,500 plus $400 per full time employee; or 4 times the actual revenue drop experienced.

Currently two RSP's are on offer, one for the 14 February lockdown and one for the current period, and the criteria must be reached for each lockdown. The 30% drop is calculated compared to a similar 7-day time frame in the previous 6 weeks. Applications for the 14 February level increase are now open and will close on 22 March. Applications for the present period open 8 March.

For more information, to check eligibility and to apply please head to the IRD's website:
Resurgence Support Payment - Inland Revenue

Wage Subsidy Scheme

The Wage Subsidy Scheme will be available nationwide if any part of the country moves to Alert Level 3 or above for seven days or more. Exact details of the announced Wage Subsidy Scheme will be made available soon. To register to receive the alert head to the following link:
Wage Subsidy Scheme - Work & Income

Small Business Cashflow Loan Scheme

This loan scheme has been extended since last year, and could be a good option to secure a potentially loan for your small business. Up to $10,000 and $1,800 per full time employee can be borrowed, and for the first two years the loan is interest free and no repayments are required. Again, your business needs to have suffered a 30% drop in revenue to qualify for this support. To check eligibility head to:
Small Business Cashflow Loan Scheme - Inland Revenue

More Financial Help

Inland Revenue and ACC have come up with a number of ways to defer tax and ACC payment obligations if your business has suffered financial hardship. Speak to your accountant for more information or take a look at the hyperlinks above. Business Debt Hibernation helps you defer business debts so that you can stay solvent until business picks up again. Meanwhile if you need to borrow more to help fund change your business to deal with Covid could apply for the Business Finance Guarantee Scheme - maybe you could change the layout of your shop floor so that you can operate efficiently at each alert level, or build an e-commerce website so that you can trade online.

Finally, take a look at the Covid-19 Financial Support Tool - a questionnaire designed to help you see what forms of financial assistance are available to you and your business

We're here to help. For any queries regarding doing business during COVID-19 in Manurewa or Clendon please call (09) 269 5252 or email admin@manurewabusiness.co.nz