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Financial support for businesses to pay people in situations where they cannot work from home and need to stay at home while waiting for a COVID-19 test result.
What is it?
The Payment is a one-off amount of $350 for each eligible worker (full or part time) that is unable to work from home while they are staying home waiting for Covid-19 test results.
Who is it for?
Criteria
Test must have been taken on or after 9 February 2021. The payment can be applied for up to 8 weeks after the test, but not retrospectively if the test was taken before 9 February 2021.
Payment cannot be paid for workers who:
Business can’t apply if receiving other Covid -19 wage subsidy or leave support scheme payment for the same worker.
Applications
Application must be completed by the business, not the worker. The self-employed or contractors can apply directly.
Payment can be applied for once in a 30 day period (for each eligible worker)
Apply online using MSD online form https://www.workandincome.govt.nz/covid-19/short-term-absence-payment/how-to-apply.html#null
Did you know Xero have recently made some big changes to their starter plan*?
No business is too small for this Xero Starter plan, whether you work alone or employ a whole team you can spend less time working in spreadsheets and more time working on projects.
What’s changed?
Xero has removed the limit on bank reconciliations so you can keep a close eye on money coming in and going out
Xero have increased the invoice limit to 20. That is roughly one invoice for each business day in a month
Online invoicing and quotes made easy
Paying bills is painless
Simple bank reconciliation
Capture bills and receipts with Hubdoc
If you are thinking about making the move to Xero, give us a call or email and we will be happy to assist ?
Contact Ellie Harris for software support and training, she can tell you about all the options you have.
*Note that all other starter plan inclusions and limits remain the same.
A few weeks ago Ursula Schwarzenbach asked me if I would like to visit them to taste their 2020 vintage wines, of course I said yes (who wouldn’t!) so last week I met Ursula and her husband Daniel at their winery to talk about the 2020 vintage and taste some wines.
Ursula and Daniel Schwarzenbach in their vineyard at Tasman – Photo Martin de Ruyter STUFF
Over the years I have been mightily impressed by this couple and the wines they craft, as Daniel said to me last week “to be honest 80% of the winemaking happens in the vineyard, I just have to finish the process in the winery.”
This understates just how much effort the couple and their young family put into creating their delightful wines. Located on the sloping hills at Tasman, up the road behind the Tasman Store, the vineyards are managed with intense detail to ensure the fruit is in the best condition possible to turn into wine.
The 2020 vintage was notable for the Covid-19 lockdown during which the wine industry was granted essential services status to be able to harvest their once-a-year export crop. At Blackenbrook Vineyards however the final pick happened on the day before lockdown started, “we were due to finish on the Friday so by working longer hours for a few days we were able to get all the fruit picked and into the winery before lockdown”.
Ursula told me their assistant winemaker headed back to Germany early to beat lockdown restrictions but as school was also locked down their son Thomas was able to step in and help. “He has always been around the winery and helped in every aspect from the vineyards to the bottling line so he knows his way around the winery, it was just full time as assistant to Daniel for a week or so.”
The couple are also delighted with the quality of the vintage this year, “it was exceptional” says Daniel and I must say that based on the wines I tried last week I agree. For me the wines at Blackenbrook have a certain purity of flavour to them, it’s a character I find difficult to describe but the wines tend to have a perfect expression of the varietal flavours and I’m certain this comes from the meticulous vineyard management that means less intervention in the winemaking process in the winery.
“Some of the wines pretty much make themselves” says Daniel. Beautiful clean fruit equals beautiful clean flavours, “for wines like Sauvignon Blanc and Pinot Blanc we didn’t do anything in the winery, we just need a good ferment to turn great, clean fruit into nice wine, we try and use very gentle processes so we don’t lose the flavours.”
I tasted seven new release wines in the hour and a half I spent at Blackenbrook and tasting notes for all of these are on my website www.toptastes.co.nz but one worth a special mention here is the 2020 Pinot Blanc (RRP$28 and Vegan certified). This is the second vintage for this variety at Blackenbrook and what a stunning wine it is!
The aromas are intense, bursting with rich cooked pear and stonefruit characters that are dusted with delightful floral notes in the background. The richness of the aromas is reflected in the weighty, delicious flavours, flavours that are balanced with a touch of freshness and deliver liquorice-like characters in the very long finish. This is a five star wine and one that will certainly find itself attached to my credit card and a place in our cellar.
Daylight saving starts on the 27th September so that means in just over a week we are going to be spending more time outside and for us that means more time cooking on the barbeque.
This week’s recipe is our favourite way to cook St Louis Babyback Pork Ribs, these are a long rack of small ribs that we buy from Raeward Fresh. To make it easier to fit on the barbeque we cut the long rack into two. For the sauce we just make enough to use fresh.
Barbeque, smoked St Louis Pork Ribs
Serves two to four people depending on whether or not you serve side dishes with it.
Ingredients
1 pack St Louis Pork Ribs
The dry rub lasts a long time when stored in a jar so we make a decent amount and use it as we need it. Just double or triple the recipe if you want to save some time next time.
Dry Rub
Mix all ingredients in a bowl. Use a fork to crush any clumps of sugar or seasonings. Store in an airtight container for up to a month.
Method
Rub the dry mix into the ribs the day before, put them on a plate, cover and leave in the fridge overnight.
We love these with an Italian coleslaw and the recipe for this is on my website www.toptastes.co.nz/recipes
ACC will start sending out annual invoices in October (usually these are sent in July but were delayed due to Covid-19 and lockdown).
If you think that the liable payroll for your business has been impacted by Covid-19 and your wages and salaries paid for the 20/21 year therefore will be less than for 19/20, then we are able to estimate the wages payable for the 20/21 year so that the ACC provisional levy invoice reflects this.
So that ACC can use the estimated payroll for the provisional levy invoice, it is recommended to provide them with an estimate before the end of September.
If the actual performance turns out to be different to the estimate, it will be reflected in next year’s invoice.
We can help estimate your payroll and provide the information to ACC. Alternatively, if you are an employer with staff and have an MyACC for Business account set up, you can log in to your account to provide ACC with a payroll estimate, if you receive an end of year shareholder salary, you need to email business@acc.co.nz .
Please note, this does not impact on self-employed as they are no longer required to pay provisional ACC levies.
Feel free to get in touch if you have any queries or if you would like some help to estimate your payroll.
Well it has certainly been an interesting seven weeks; dealing with level 4 lockdown conditions and then easing into level 3 before finally getting back to a level of normal activity under level 2 conditions. Obviously things will never go back to business-as-usual as it was before Covid-19 raised its ugly head but we are able to get back to business and work on rebuilding our businesses.
Then we had the 2020 Government Budget announcements, a budget designed to make sure as many businesses as possible survive and are able to rebuild in a new economic environment.
Some businesses will never be the same, some will close and others will adapt and grow, taking advantage of the opportunity to revisit how they do business.
While the office will be open please note Sari will still be working from home for a few more weeks. She is available for Zoom video conference meetings, on her mobile (021-548-489) or by email (sari@savage.co.nz)
Visiting our office
For us our focus will be on helping you as it always has been, the success of our clients is really important to us and to help you we need to make sure we have a workplace that is safe for you and our staff. This means if you do need to come to our office you will notice a few small changes that are designed to meet government requirements for operating under level 2 conditions.
We will have social distancing practices in place, there will be a table at reception for you to leave packages, there will be hand sanitiser readily available, there will be single-use facemasks available for you to use if you are meeting with a staff member and you will be required to register as a visitor to our office for contact tracing purposes whenever you visit, no matter how briefly.
Contact Tracing
We will be using the “I’m Here” contact tracing system, you will need to use your phone to scan a code when you arrive and depart. We have chosen this because it is a simple solution to use, however, our staff will be able to assist if you have any issues using it. There will also be a form to fill in if you don’t have a mobile phone. You can check out the system at www.imhere.nz so you know what to expect when you do visit us.
The Budget
The one Budget item that will have the most impact immediately for many businesses is the announcement of an extension to the Wage Subsidy Scheme.
If your business has suffered a 50% or greater decline in turnover for a two month period then you are able to apply for a subsidy to help you pay staff wages for another eight weeks.
Small Business Loans via IRD
Announced before the budget but included in the overall Covid-19 response package is a loan scheme for SMEs. The scheme (https://media.ird.govt.nz/articles/government-boosts-cashflow-support-for-small-businesses/) for SME’s is to be administered by IRD. This will be interest free for 12 months or low interest for up to five years with no repayments for the first two years if you take the low interest option. It will be administered through IRD and provides for loans of $10,000 per business plus $1800 per employee up to a maximum of $100,000.
While we can’t make the application for you we will give any of our clients up to an hour free time to help you with your application, just email Sari, Anna or Libby to arrange a time to talk.
We hope you are all staying safe and we’re looking forward to talking with you sometime soon.
It has been a couple of weeks since we sent you an update and a number of things have happened in that time, prime among the the announcement of the rules that will apply when we head into the Covid-19 Level 2 environment. All businesses will need to alter how they work and it’s important the changes are well thought through as these restrictions are likely to be with us in one form or another for many months to come.
Our offices will be open for business again when Level 2 restrictions come into place.
We are excited to be able to have everyone back at work, albeit with restrictions and changes to how we operate.
Because Sari has an autoimmune condition she won’t be back in the office for a few weeks yet but will still be working from home by email, mobile phone and Zoom video conferencing.
We are currently working on a Covid-19 plan for the office and the biggest impact on you will be when you visit our office, we will have social distancing rules in place you will need to observe. Because a lot of our communication with you is via phone and email our main focus is going to be on ensuring the safety of our staff when we do return.
Government announcements and support
The business environment for the foreseeable future is going to be quite different to what it was before Covid-19 raised its head, every business is going to face challenges and will have to review what it does and how it goes about its business.
The government has acknowledged there will be very challenging times ahead with much higher unemployment (especially from the hospitality and tourism sectors) and it appears to be offering assistance to SME’s (Small to Medium Enterprises) that make up a huge proportion of businesses in this country.
Small businesses that provide services and products to local regions are going to be vital to New Zealand’s economic recovery as we will be less reliant on tourism until our international borders reopen, this could be a number of years away.
Along with various tax changes and the significant wage subsidy the government recently announced a loan scheme (https://media.ird.govt.nz/articles/government-boosts-cashflow-support-for-small-businesses/) for SME’s. This will be interest free for 12 months or low interest for up to five years with no repayments for the first two years if you take the low interest option. It will be administered through IRD and provides for loans of $10,000 per business plus $1800 per employee up to a maximum of $100,000.
This is in addition to various loan guarantee schemes put in place earlier with the banks.
Looking ahead
While we may appear to be over the very worst of the Covid-19 outbreak there is every possibility it could re-emerge as a significant health threat during the winter months so it is important we all do our bit to avoid having to go back into a Level 4 lockdown situation again.
So for the next two years let’s have local and New Zealand holidays and visit places you haven’t been before, you may be surprised at what New Zealand has to offer. And of course shop local, support those businesses that have supported our community for many years and help them stay in business so they can be part of our future too.
In the next week we will be sending an update on what you will need to do if you visit our offices.
Take care and continue to do your bit to keep everyone in our community safe.
This is just a quick update to recap on a few things we have put in this update email over the past few weeks.
Closed
Our office will remain closed during Level 3 restrictions.
Our senior staff are working from home so we can still provide essential support and, for those of you have already dropped your annual accounts in to us, we have logged your accounts into our workflow records and will prepare your annual accounts on a first-in, first-out basis. Unless of course you have an urgent need for financial information to give to your bank, in that case we will give you accounts priority.
Contact numbers
You can contact us as follows:
Sari Hodgson 7 days. sari@savage.co.nz 021-548-489
Neil Hodgson 7 days. neil@savage.co.nz 021-445-142
Anna Patchett Monday to Friday 9am to 5pm anna@savage.co.nz 021-276-7393
Libby Gledhill Monday to Friday 9am to 5pm libby@savage.co.nz 027-313-4382
Zoom
We are available for Zoom meetings (via internet). Just email the person you want to talk with and we will make a time to meet and send you a zoom link so we can chat online
Monthly Invoicing
Also as per last month, because we won’t be back in the office our monthly invoices for the end of April will be sent without the usual detail. If you require a detailed invoice please just contact us and we will send you one when we are able to operate from the office again.
And don’t forget, you are able to contact Neil to make arrangements to pay your account over time if your business and cashflow has been impacted by the lockdown.
We do understand these are challenging times for many people and businesses and we will support you in any way we can.
Free help
A reminder we are offering free help to all clients who need help putting together cash flows and other planning documents you may need during the recovery stage as we move out of lockdown. We are here to help and will give you an hour free time towards preparing these documents, pointing you in the right direction or reviewing various plans you have been working on.
Tell us what is happening
Let us know if you’re open for business so we can share the good news, we want to encourage everyone to do as much business locally as possible. This is our community and to make sure it remains a great place to live, work and play we need to make sure we support every business in the region.
Tell us about your business – are you open again? What changes have you made to be able to operate in Level 3? We want to share the good news so tell us and we will tell others.
Buy local
As above, we urge you all to buy local and support local, small businesses are really suffering in these most unusual, unexpected and unplanned for times so they need as much help as they can get, every $10 you spend locally makes a big difference to local businesses.
You don’t need to buy everything online or make every meal a delivered meal but maybe treat yourself once a week to something tasty for a great local food business.
Personally we have made a point of having things we normally buy delivered by local producers and retailers and have already ordered some meals for delivery for later in the week.
Watch this space for an email about local restaurants doing home delivery for the next few weeks.
Stay safe
Finally, we trust you have managed to stay well and have been keeping safe, don’t drop the safety standards just yet because we don’t want Covid-19 to tighten its grip again meaning we have to go back to Level 4 lockdown for another four weeks.
As these unusual times continue there are a few things to remember – stay safe and shop local, shop local, shop local!
While we are in this lock down situation together we need to remember to help one another come out of it in as best shape as possible. The best way to do that is support every local business you can.
Various restrictions under Level 3 Lockdown may make it seem like Level 3.75 but at midnight on Monday 27th April some businesses will be able to start operating again, mainly without any public contact but with online or phone orders, contactless payment and similar things only.
Also if you are currently working from home you must continue to do so if it is at all possible. With that in mind we will NOT be reopening our office under Level 3 restrictions.
However Sari and our senior staff will continue to work from home. So far this has been a little frustrating at times but we are getting everything done you need us to do. We are also set up to use Zoom video conferencing so if you want to have some more personal contact then email us to make an appointment for a Zoom meeting. Anna and Libby are available Monday to Friday 9am ‘til 5pm while Neil and Sari are available seven days a week, including evenings if required.
Here’s a link from business.govt.nz for an explanation of various alert levels and operating guidelines for businesses
If you can’t find an answer to your questions here then just email or phone us, we are here to help our clients through the challenging times ahead of us as we work on re-establishing our businesses again.
Things to Remember
And of course remember to stay safe, don’t let your social distancing standards relax because we don’t want the community to be forced back into level 4 lockdown, and most of all be kind to each other.
Being kind includes supporting every local business we can so they are here for us to enjoy into the future, so look for local business offering deliveries from the 28th April, buy from them and use other local service providers – shop local!
Well it continues to be an interesting time we are working our way through. The great news is that the Covid-19 lockdown appears to be having a positive effect by controlling the spread of this illness.
While all the signs are good we still have a long way to go, firstly to get through the immediate crisis and then a very long road to economic recovery. We are expecting some of the lockdown restrictions to be eased but not expecting them to be lifted totally for a few months yet.
Today’s Government Announcement re Level 3
The Government has announced general conditions for operating under Level 3 restrictions when they do drop the Covid Threat Level from Level 4 to Level 3.
It appears there will still be strict restrictions on who can open for business and how those businesses operate. The key point is the social distancing 2 meter ‘bubble’ must be retained. We’re uncertain how this will effect Savage & Savage and whether or not we are able to operate from our offices. We are expecting to not be able to operate from the office however we do want to get back as soon as we can and will be seeing if the detail in Level 3 lockdown rules allow us to. Watch this space.
Planning
With that in mind business owners need to start thinking about what their business is going to look like post Covid-19. Some of the things to consider are when will your business be able to be up and running again? Will your business clients still be in business? How will your general customer base have changed? What will your cash flow look like for the next two years? How many staff will you need? What is your tax liability for the next two years? And many other things.
There are many things to consider and every business owner is going to have to do some serious thinking and planning. We can help you with your cashflow forecasting for the next few years so we are happy to offer our clients an hour of time from either Anna or Libby, at no charge, to discuss what you need to think about when preparing a cashflow. If you’d like us to prepare your cashflow for you we will give you an hours’ free time when preparing it.
Recent tax changes announced
The Government has announced some changes to various taxes and payments, in particular tax carry back changes (tax losses carried forward). When we get exact details about the implementation of these changes we will share those with you but in the meantime you will need to do some panning, both for your cashflow and future tax purposes.
So we can accurately estimate your future tax liabilities it’s important we have the most up-to-date information as possible so please don’t delay sending your annual accounts information to us. By having your tax position for 2020 established we can then look at forecasting 2021 for the loss carry back if you have one. The tax relief measures will be easier to use if books are up to date.
Attached is a factsheet from the Beehive – Supporting small and medium sized enterprises during the COVID-19 crisis. This is a summary of the latest support measures being rolled out by the government.
Annual Accounts
We operate on a first in – first out basis unless there are urgent business needs like refinancing business sale etc so the sooner you get your information to us the sooner we can get your annual accounts finished.
Tax payment relief
When it comes to IRD payment arrangements your tax position needs to be established first, this goes for all tax types. It’s better to get in contact with us to request an IRD payment arrangement rather than just not paying – even though IRD will be lenient and write off interest and penalties it is much better to have a formal arrangement in place.
Payment of our invoices
We understand these are difficult times financially for many businesses and we don’t want this to be a barrier to us doing work for you so if you would like to make an arrangement to pay your account with us over a period of time please contact Neil at neil@savage.co.nz . We want to make sure we help all of our clients as much as we can.
Please continue to think about your safety if you are out and about.
We’re working on how we will operate under Covid-19 Level 3 restrictions when they come into place, hopefully in the not too distant future.