After a year and a half since it all began, COVID-19 is making rounds a second? third? fourth time? We just can’t keep track! The Government is yet again offering help to businesses facing a drop in revenue due to recent alert level increases. The Resurgence Support Payment (RSP) is a government initiative that helps businesses stay afloat amidst escalating alert levels throughout the country.
The RSP may be activated whenever an increased alert level lasts for seven days or longer, but there is no guarantee! Each time the Government decides to implement the RSP, eligible businesses throughout New Zealand will receive a one-off payment to be used for business expenses, such as fixed costs and wages.
You can claim the RSP if your business has incurred at least a 30% decline in revenue or capital raising ability. Your revenue in a span of seven days will be compared to a typical week of trading - six weeks before the change in alert level (provided there was no escalation during this period –otherwise, six weeks prior the initial increase may apply).
Note that the revenue drop must be directly due to the alert level increase and not the general impacts of the pandemic. The business must also be viable and ongoing for six months, with no more than 50 full-time employees. If you have any questions about eligibility, give us a buzz and we’ll help you suss it out!
If eligible, your business can receive $1,500 plus $400 per full-time employee OR four times your actual revenue decline, whichever is lesser. Your business can apply for the RSP each time it is activated, as long as it meets the eligibility requirements. Note that employees working more than20 hours per week are considered full-time.
We’re all in this together and we’re here to help your business get through. So, should you need help with any application or if you have any concerns about your business staying afloat during these unpredictable times, please don’t hesitate to get in touch with the team. Want to hear it straight from the ‘tax mans’ mouth? Check out what IRD has to say on the COVID-19 RSP here.
Your Outside team, Ruby and Rocket
Mail: PO Box 24-457, Wellington 6142
Phone: 04 889 2975