Question :
HelloI was due to open another location for my salon on 28 March and had a new team of 8 starting the week prior for training (the first week of lockdown). I’ve been declined the wage subsidy because the new employees I applied for don’t technically look like they work for me because no tax has been filed with ird yet.has anyone had a similar situation? I’ve had no luck getting responses from MSD on this despite multiple avenues. Really hoping I can retain these staff but need subsidy to do so!thank you 

Question submitted 16/04/20 @ 09:39pm
Industry: COVID-19 Funding & Support
  • Hi there

    I do know that MSD have a little bit of grace with applications in regards to making sure you update the IRD at the same time as going through the application process. The only thing I could suggest at the outset would be to submit the new employees contracts as confirmation that they were a) on board with you as a business and b) it confirms their payroll timeline and start date.
    I know waiting on the phone with them is painful, the wait can be very long, but it would be worth hanging on to be able to send that information through.

    Ngā mihi

    Morena – another idea is that each of your team of 8 apply themselves for the wage subsidy as contractors, would that be a work-around? Andy

    Hi there. I’d suggest filing your IR348 for March now (due by Monday anyway) and paying associated PAYE promptly to get the records synchronised ASAP. Not an ideal scenario to be paying before receiving, but it should be a one-off with the lump sum received covering some of the coming two months also. Regards.

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