Question :
If I have to reduce my trade hours, how does that affect the wage subsidy. Do I have to refund it?

Question submitted 23/04/20 @ 11:27am
Industry: COVID-19 Funding & Support
  • If you no longer meet the criteria for the subsidy (where you have estimated your turnover will be down by 30% but this has not occurred), and or no longer using the subsidy to retain and pay your employees then you will need to repay the unused portion of the wage subsidy. This would be a change in circumstance impacting on the eligibility for the subsidy and therefore need to repay.

    If reducing your trade hours means the employees will not be working for the full 12 weeks period at the time of approving the declaration, then employers should make their best estimate of the period the wage subsidy is actually required for.

    You can email COVID19subsidy_overpayment@msd.govt.nz to disclose any mistake or overpayment.

    You will need to include the following information in your email:

    Business name
    IRD number
    New Zealand Business Number (NZBN), if you have one
    Phone number
    Email address
    Postal address.
    And advise the amount overpaid and the reason

    Kia Kaha

    Hi, if the amount of wage subsidy you have received is less than total amount of wages paid to qualifying employees over the 12 week period the subsidy has been paid for, you will have no obligation to pay any amount back. However, if your reduction in hours means the total wages you end up paying over the 12 week subsidy period is less than the subsidy amount you received then, yes, the difference will be repayable to MSD. All the best.

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