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

You can’t scale time. Oh really?

A while back I read a statement from some wise business guru saying “you can’t scale time. Everyone has only 24 hours a day to do what they do.” My view is that of course, you can scale time. You can have a 30 hour day, a 100 hour day or a 300 hour day. Time is infinite and yes, it can be scaled. It’s called employment and delegation. If…  Read more

Get off Your Bum! How to Avoid “Sitting-itis”

The New Taboo – ‘Sitting-itis’ We continue to sit too much, despite many health warnings on the negative effects of sitting. What are the issues associated with sitting too much? Sitting can increase the risk of obesity, diabetes, heart diseases. It can also lead to poor mental health and even certain cancers. 78 percent of office workers feel they sit too much. Only 41 percent of office workers actually stand…  Read more

Now We Have Cheap Money

But Should We Use It? We’ve now got cheap money so let’s borrow more so we can spend more and save our country. Well that’s the message from the Reserve Bank. It’s a message I support but with one big fat caveat: It’s a message for business owners not households. If you’re a business owner only borrow to buy assets, technology or IP that will drive your revenue upwards, increase…  Read more

Is it better to buy or lease a company vehicle?

If you need a car to operate your business, you may wonder whether it makes more sense to buy or lease a company vehicle. On the one hand, if your business owns the car you’ll have a long-term asset and may qualify for more tax deductions. On the other hand, buying a car is a huge expense and monthly lease payments tend to be lower than car loan payments; they…  Read more

Great reasons to shorten your workweek

Okay, there probably aren’t a lot of people who need to be convinced that a shorter workweek is a great idea. Small business owners, however, might be on the list of people who need a little encouraging. After all, every day they take off could mean a longer day to make up for the missed hours. There are some very real benefits to working a shorter week and those benefits…  Read more

10 Productivity Tools to Help You Do More at Work

In today’s fast-paced world, everyone wants to be more productive. Fortunately, there is an ever-increasing number of tools, many of them available online and across multiple devices, that promise to help us achieve our goals. The challenge then becomes how to know not just which tools will live up to their promise but which tools are right for our business. Choosing the best productivity tools depends on a number of factors,…  Read more

Encouraging word of mouth

If you have any doubt that word-of-mouth referrals are important, consider these recent stats: According to Neilson, 92% of shoppers trust recommendations from friends and family more than traditional advertising 20% to 50% of consumer purchases are made because of a word of mouth recommendation 81% of buyers are influenced by their friends’ social media posts. So how can you encourage positive word of mouth for your small business? Try…  Read more

Paying employees for leave

Working out what you need to remember when you are paying employees leave can be complicated — but with the right systems and processes in place, it doesn’t have to be difficult. Everyone wins when leave is done right Paid leave — your employees’ entitlements All employees are entitled to paid days off for: annual leave public holidays sick leave bereavement leave. You can decide whether or not to pay…  Read more