Eligibility for the CSP was based on whether the applicant carrying on a business or organisation that met the criteria to apply. Eligibility was not based on employee numbers.
However, the number of employees did matter when working out the CSP amount. The number of employees a business or organisation had was measured at the time the business applied for the CSP.
A person was an employee if, at the time of application, both of the following were met.
- The person was the applicant's employee and not, for example, an independent contractor.
- They 'regularly worked' for the business. In other words, they were actively involved in the business day-to-day.
The number of hours an employee regularly worked helped work out whether to claim them as either a:
- full-time equivalent worker (20+ hours a week)
- part-time equivalent worker (up to 20 hours a week).
Employees on leave
An employee could be claimed even if that employee was on leave at the time the business applied (for example, on sick leave, annual leave, or parental leave). In such circumstances, the claim for the employee was based on the number of hours each week that the employee regularly worked when they were not on leave. For example, if the employee regularly worked 20+ hours per week (when they were not on leave) they could be claimed as a full-time equivalent worker even if they may be on leave at the time of application.
Employees on ACC
If the employee was on ACC at the time of application, they could still be claimed. In such circumstances, the claim for the employee was based on the number of hours each week that the employee regularly worked when they were not on ACC. For example, if the employee regularly worked 20+ hours per week (when they were not on ACC) they could be claimed as a full-time equivalent worker.
If a person was self-employed (that is, an applicant working as a sole trader for yourself) they could claim for themselves as an employee.
A company that applied could claim for the shareholder-employees that regularly worked for the company (that is, those shareholder-employees that were actively involved in the day-to-day business) as being employees for CSP calculation purposes, whether or not the company had paid the shareholder-employee a salary in a particular year. For example, the applicant may have been in a growth stage and they may not have yet paid the shareholder-employee a salary if they were retaining capital within the company.
Not-for-profits will often have volunteers, as opposed to employees. In this instance, the not-for-profit could apply for the base payment only if they had no employees. If they had employees, they could claim the base payment and the number of employees.
Commonly owned groups
A member of a commonly owned group could claim those persons that regularly worked for them as being employees (for CSP calculation purposes). This is the case even if the person was legally employed by another member of the group at the time. Please see the guidance on our commonly owned groups' page for the circumstances when a member of a commonly owned group could claim a person as an employee for the purposes of the CSP calculation.
Scott has 8 full-time and 4 part-time employees. To work out his total FTE, Scott does the following calculations.
- 8 full-time employees × 1 FTE = 8
- 4 part-time employees × 0.6 FTE = 2.4. This is rounded up to the nearest whole number, in this case 3
- 8 + 3 = 11 FTEs, Scott can apply for the RSP based on 11 FTEs.
Elena is the shareholder and director of Dolphin Entertainment Tours - which is not a registered employer and has no employees. However, Elena receives a shareholder salary from the company and shows this in the company’s income tax return. Dolphin Entertainment Tours can apply for the CSP with Elena as 1 FTE.
Go Play Charitable Trust has 2 employees and over 100 volunteers working for them. Volunteers are not considered to be employees for the purposes for the CSP. Therefore, in this instance Go Play Charitable Trust can only claim for the 2 FTEs that are actively involved in the day-to-day activities of the Charitable Trust.