Question :
I have a number of analysts who work as part-time contracts.   Mostly work my part of their life and they study and might do some other paid work as well.  They might earn up to $450a week with me. Are they entitled to take the wage subsidy, if they suddenly resign from my work? It’s been a shock for at least one person to suddenly quit. It could be an unintended outcome of the wage subsidy.          

Question submitted 05/05/20 @ 09:26am
Industry: Digital and Technology
  • There’s plenty of information about the wage subsidy on the Employment NZ website.

    Stay safe.

    HI there – so the wage subsidy is not a ‘right’ to an employee of your business, it is a subsidy that is paid to the employer as support to you to keep your team employed through the covid-19. First question, are these people ’employees’ or ‘independent contractors’ of your business. Do you pay their tax for them, or do they pay it themselves? Do they charge you GST (probably not), do you have employment contracts with them?

    If they are an employee, even if part-time – then you are entitled to make a claim (as long as you meet all of the criteria) for wage subsidy support – then you pay them for the period. However, if they leave during that time, then you will be required to pay the portion of the subsidy back to MSD.

    If they are not an employee, and are more like an independent contractor of a business in their own right, then they mabye able to apply for the wage subsidy in their own right.

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