Paul Davies Paul Davies

Wage subsidy: Good chance agents will qualify, says OneTeam

An accountant who specialises in the travel and tourism industries is urging agents and others in the trade to gain a good understanding of the recently announced Wages Subsidy and Resurgence Support Payment (RSP) even if at first glance they feel they may not qualify.

Paul Davies, director of OneTeam Chartered Accountants says if an agent’s actual or expected revenue is down by 40% or more due to the move to Alert Level 4 they can claim the wages subsidy for the two weeks commencing 17 August. 

‘The comparison is either with a typical 14-day period in the six weeks prior to 17 August. It is important to note that if your business is seasonal (which most travel businesses are) you can compare with 17-30 August in 2020 or 2019,’ says Davies.

This payment needs to be passed onto staff.

The Wages Subsidy August 2021 will cover the two-week period at the rate of:
• $600 a week for each full-time employee retained (20 hours a week or more);
• $359 a week for each part-time employee retained (less than 20 hours a week).

To claim, CLICK HERE.

‘In addition to the Wages Subsidy you can claim the Resurgence Support Payment (RSP) if your decline in revenue is greater than 30%. The decline is measured over a seven-day period from 17 August,’ Davies adds

‘The RSP is for your business. The revenue must be actual revenue (not predicted). To determine whether you are 30% down you must compare with a previous period. The comparison is either with a typical seven-day period in the six weeks prior to 17 August.

‘Again if your business is seasonal (which most travel businesses are) you can compare with a similar period a year ago. ie August 2020.

‘Applications for the RSP will open at 8am on 24 August. You apply in MY IR, or your tax agent can apply for you.’

To check details and eligibility, CLICK HERE.

Email: paul@oneteamca.co.nz

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