COVID-19 Business Update – 19 August 2020

Hello again – welcome to the latest edition of our Weekly Digest. Read on for this week’s update. COVID-19 Outbreak After 102 days without community transmission, we’ve all been a little shaken by the return of the coronavirus. According to health officials, COVID-19 may have been circulating in Auckland for weeks, as 13 new community cases were confirmed. All these are linked to the initial four cases announced last week.…  Read more

COVID-19 Business Update 24 June 2020

Welcome back to our Weekly Digest. Read on for this week’s update. Level 1 As you know, New Zealand moved to Alert Level on 10th June, which means restrictions to work, school, sports, and domestic travel are lifted. Our border remains closed to most travelers and strict controls are in place. All arrivals are tested for COVID-19 and a 14-day managed quarantine or isolation is mandatory. (been some lapses! –…  Read more

COVID-19: Wage Subsidy and Leave Payments Explained

We have found that there is some confusion for business owners around the the tax treatment of the wage subsidy. Tax treatment of the wage subsidy (the technical stuff): It is not subject to GST. An order in Council is currently being drafted to treat it as exempt (Section 5(6E)(B) (iii GST Act) The wage subsidy paid to the employer is not taxable. It is excluded income under Section CX…  Read more

Surviving COVID-19: Business Owner Checklist

We have received an excellent checklist by our friend Matt James from North Canterbury Business Services. This checklist provides business owners with key points and is helpful and concise. Please note: these topics have many parts that are constantly changing. For example, the wage subsidy and reducing pay to 80%: This needs to be negotiated and not unilaterally imposed by employers.  We will be updating this checklist as changes occur.…  Read more

COVID-19 and Redundancies: Advice from an HR Lawyer

For this newsletter, we have a special contribution from specialist HR lawyer Kirsten Maclean with five key bullet points that employers need to be aware of when considering redundancies and restructuring in the current environment. Kirsten advises that these are five key things you need to know when considering a restructure, including redundancies and how to deal with the wage subsidy, in light of the government’s COVID-19 wage subsidy scheme:…  Read more

COVID-19: Wage Subsidy Scheme

For full details of the scheme – click here. The scheme is open to Sole traders and self employed as well as employers. You will have to declare: 30% or more decline in revenue compared with last year for any month between January 2020 and the end of June 2020. Applications can also be made on the basis of forecast revenue loss within the period of the scheme. Maximum claim…  Read more

COVID-19: Economic Response Package

The Government has released an economic response package to help cushion the impact of COVID-19 and support the economy during the COVID-19 crisis. The package includes: wage subsidy scheme leave and self-isolation support business cash flow and tax measures wider $12.1 billion package For full details on the package please read THIS ARTICLE. Our initial thoughts The tax measures in the overall fiscal package, although limited, are not cheap. The…  Read more