Newsletter
Lay Dodd Partners - August 2020 Update
20 August 2020
COVID-19 SUPPORT FOR EMPLOYERS
In response to the recent lockdown restrictions, the Government has announced a new round of Wage Subsidy.
Work and Income have two payments currently available to support employers affected by COVID-19; a Wage Subsidy Extension and the Leave Support Scheme.
A new Resurgence Wage Subsidy payment will also be available from 1.00 pm on 21 August 2020.
You can only receive one COVID-19 subsidy at any one time per employee
What to apply for:
NEW RESURGENCE WAGE SUBSIDY - from 1.00 pm on 21 August 2020
The Resurgence Wage Subsidy Extension is a 2 week payment. It is available nationally for qualifying businesses who have had, or expect to have, a revenue drop of at least 40% because of COVID-19 for a continuous 14 day period between 12 August and 10 September compared to a similar period last year.
Applications can be made from 1.00pm on 21 August 2020 until 11.59pm on 3 September 2020.
You can apply for this if you meet the criteria and have not received a wage subsidy, or when any wage subsidy you have received has finished
Find out more about the Resurgence Wage Subsidy
https://www.workandincome.govt.nz/covid-19/resurgence-wagesubsidy/index.html
PROVISIONAL TAX THRESHOLD
In case you have you have not received a tax notice from us in recent days, the Government has recently passed legislation to increase the provisional tax threshold from $2,500 to $5,000. This applies for the 2021 tax year (April 2020 to March 2021).
This means any current provisional taxpayers with provisional tax payments of less than $5,000 will not have to make three installments during the financial year and terminal tax will only apply on the due date typically 7 April 2022. This is intended to lower compliance costs for smaller taxpayers and allow them to retain cash for longer.
The increased provisional tax threshold for 2021 and future tax years may mean that some taxpayers no longer have to pay provisional tax.
This is a permanent change that will take effect from 2020-2021 income year. For most taxpayers, this will mean 1 April 2020.
If you would like to continue paying in installments throughout the year, you can make a voluntary payment to the IRD or put aside money in a bank account until your tax payment is due.
Find out more about the Provisional Tax Threshold
https://www.ird.govt.nz/covid-19/business-and-organisations/provisionaltax#:~:text=The%20increased%20provisional%20tax%20threshold%20from%
20%242%2C500%20to%20%245%2C000%20for,taxpayer%20for%20that% 20tax%20year.
If you have any questions about the update or other matters, please contact us, we are here to help.
