Update On The Wage Subsidy
Jun 10, 2020
Our friends at Sidekick Accounts have pulled together some important information that is vital for businesses during COVID recovery.
Update to Wage Subsidy
On 5th June, the Government announced a change in criteria from a 50% revenue drop to a 40% revenue drop.
This means you must have had a revenue loss of at least 40% for a continuous 30 day period. This period needs to be in the 40 days before you apply (but no earlier than 10 May 2020) and must be compared to the closest period last year.
Other key points
- If you're applying for an employee you've already applied for the Wage Subsidy for, you can't apply for them until their 12 week Wage Subsidy has finished.
- It will cover 8 weeks per employee from the date you submit your application.
- It will be paid to you as a lump sum at the same weekly rate as the Wage Subsidy.
- If you've given an employee notice of redundancy before you apply, you can't apply for those employees unless the redundancy notice is withdrawn.
You'll need to agree to certain obligations, such as to:
- Pass the subsidy on to your employees
- Retain your employees for the duration of the subsidy
- Do your best to pay your employees at least 80% of their normal pay
- Take active steps to mitigate the impact of COVID-19 on your business.
Note: applications are open from 9am 10 June
For more information click here
Extension to Small Business Loans
The Small Business Cashflow (loan) Scheme has been extended for a further six weeks. Applications opened on 12 May 2020 and can now be submitted up to and including 24 July 2020.
Organisations and small to medium businesses, including sole traders and the self-employed, may be eligible for a one-off loan with a term of 5 years if they have been adversely affected by COVID-19.
Note: applications are only available in myIR and are open until 24 July 2020.
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