Covid-19 Wage Subsidy

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 is $150,000 for any one employer. Subsidy based on 20 hours or more of work is $585.80 per week or a total of $7029.60 for the 12 weeks. For part-time workers this figure is $350 per week or a total of $4200. Employer must pay a minimum of 80% of the employee’s normal wages to qualify for a claim. Employers must also have taken active steps to mitigate the impact of Covid 19. For example “engaged with their bank/financial adviser”. A declaration has to be signed to that effect. The scheme is administered by the Ministry of Social Development. MSD will aim to make first payments no later than 5 working days from when the applications are received. Covid 19 leave From 17 March 2020, there is financial support to businesses that have workers unable to work because they are in self isolation, are sick with Covid 19 or are caring for others with Covid 19. The scheme applies to employees, contractors and the self-employed. Payment rates of the same as above and the employee must be in a situation where they are not able to work from home.
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Business Tax Update March 2020

Tax relief - COVID-19 Coronavirus, Key services unavailable over Easter, Employer and not-for-profit webinars, Employer seminars across the country, Tax technical beta site available in March, RWT exemption register, Research and Development Tax Incentive – website, Maintaining proper employment records is essential to your business (on behalf of MBIE), Avoid penalties or interest,
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Business Tax Update February 2020

No cheques from 1 March, Income equalisation schemes, Income equalisation schemes, New tax technical website coming, Prescribed interest rate decreases, Employer-provided travel from home to a distant workplace, Handy phone numbers
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Business Tax Update November 2019

November Issue
Investment income – what’s changing in April 2020 - From 1 April 2020, Inland Revenue is making changes that will affect investment income payers and recipients. Investment income includes interest, dividends, PIE income, taxable M?ori authority distributions and royalties paid to non-residents. Do you know about the bright-line property tax rule? GST beta content available to review The Accounting income method (AIM) The Accounting Income Method (AIM) is the provisional tax option that makes paying tax easier. With AIM you will only need to pay provisional tax when you make a profit. AIM is generally available to businesses with turnover of less than $5million who use AIM-capable accounting software Employer deduction payments -All payments of employer deductions should be coded with the account type ‘DED’ Payroll returns - Please ensure all payroll returns filed electronically or manually have start and cease dates for all new or departing staff. Customers incorrectly using secondary tax codes - Some employees are using a higher tax rate, such as a secondary tax rate (ST code), to help offset tax bills based on other income they get. Law changes from 1 April 2019 mean this is no longer allowed if the income being taxed at the higher tax rate is their only source of PAYE income.
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Business Tax Update October 2019

October Issue
Short-process rulings - We can now apply for short process rulings. Moving on from cheques - IRD will no longer accept cheques from 1 March 2020. Enrolling for the Research and Development tax incentive - This is available from the 2019/20 income year, features a 15% tax credit on up to $120 million of eligible expenditure. Use of Money interest rates (UOMI) - From 29 August 2019, the Use of Money Interest (UOMI) rates on underpayments and overpayments of tax changed.
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