For individuals & families: As a Job Support Scheme participant
Job Support Scheme participants
Introduction
The Government has introduced a Job Support Scheme (formerly referred to as the 9-day fortnight) which is aimed at helping businesses keep workers.
The scheme provides an allowance administered by Work and Income to supplement the income of workers who have accepted reduced hours to keep their jobs in the current economic climate. To be eligible, an employer must currently employ more than 100 staff.
The scheme has been extended from 27 April 2009 to include employers with 50 to 100 employees.
How it works
The scheme:
- helps workers by encouraging businesses to retain workers on reduced hours rather than make them redundant
- gives workers job security during this time
- assists businesses by allowing them to temporarily reduce their costs.
Employers will be paid an allowance of $12.50 per hour (the adult minimum wage) for each employee who agrees to participate in the scheme, up to five hours per fortnight. This allowance is then on paid in full, less any tax deductions to their employees.
Receiving the allowance
Employees should talk to their employer or union for more information.
For information on employment relations matters please see the Department of Labour website.
You tax obligations for the Job Support Scheme payments
These payments are treated as income and are subject to tax. Your employer will pay them to you as part of your usual salary and wages . Tax is deducted from your total income, including these payments, using your current tax code.
| If ... | then ... |
|---|---|
| you are making Kiwisaver contributions | your payments will be included as gross income when calculating both your and your employer’s contributions. |
|
you are entitled to working for families tax credits you receive working for families tax credits weekly or fortnightly |
these payments will be included as income for your family’s working for families tax credits entitlement.
Remember: if you have any further changes to your income or family circumstances it is important to update your details again so you receive your correct entitlement. |
| you have a student loan | these payments will be included as income for your student loan obligations, during and at the end of the year. |
| you have child support obligations |
these payments will be included as income for your child support payments. Your current assessment will be unchanged if the reduction in hours does not reduce your income by more than 15%. |
Date published: 30 Apr 2009
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