Wage Subsidy Scheme (WSS)

The Wage Subsidy Schemes (WSS) ensure employers can keep paying their employees, and workers continue to receive income, and stay connected to their employer, even if unable to work their normal hours.

Eligible employers and self-employed anywhere in New Zealand may apply for the WSS if they expect a loss of 40% of revenue because of the alert level increase announced on 17 August.

The WSS rates have increased. Businesses will be eligible for:

• $600 per week per full-time equivalent employee and
• $359 per week per part-time employee, paid as a 2-week lump sum.

Applications opened on Friday, 20 August 2021.

Tax implications

The wage subsidy is considered excluded income to businesses and is also GST exempt.

When passed on as wages, businesses don’t get a deduction for income tax purposes.

Keep comprehensive records of wage subsidies received and passed on to employees, as well as any subsidies your business subsequently repaid, to be prepared for any adjustments required in your tax return.

How to Apply

Click here for the employer application.

Click here for the self-employed application.