How would you like to be paid to employ staff?
Depending on your circumstances, you could qualify for subsidies from Work and Income (WINZ) to employ staff:
1. Skills Investment Subsidies help employees develop the skills they need to do their job. WINZ may also be able to help with their training costs.
2. Community Max supports the completion of projects that benefit the community or the environment and that would not otherwise be done, while creating jobs for young people.
3. Modification Grants help people with disabilities pay for workplace changes or equipment that makes it easier for them to stay in or get work.
4. Taskforce Green is a subsidy that allows people to participate in project-based work where they can develop work habits and general on the job skills. This experience will help people progress towards unsubsidised, sustainable employment.
Who can get the Skills Investment subsidy?
Your business may qualify for the Skills Investment Subsidy if:
- the person you are employing meets the eligibility criteria
- the position is on-going and continues after the subsidy has finished
- the job involves at least 30 hours a week of work (although you may still qualify for the subsidy if the position is part time)
- you pay the market wages for the job
- you have not dismissed anyone else to employ the person.
What is involved if you qualify for a Skills Investment subsidy?
If you qualify:
- you sign a formal agreement that outlines the terms and conditions and sets out the level of subsidy
- you hire the person and pay their wages, just like you normally would, and keep wage records in case we need to refer to them
- every 4 weeks, you send WINZ a completed claim form and wage records and they will direct-credit the subsidy into your business bank account
- the subsidy is paid for an agreed period for up to 52 weeks
- you will need to pay the balance of the wages, PAYE, GST, ACC levies, holiday pay as well as take care of health and safety requirements.
What is Community Max?
Community Max provides a wage subsidy for six months for young people to help complete community-based projects. It was introduced on 3 August 2009 with the initial 3,000 places being quickly taken up in 500 community based projects throughout the country.
On 1 July 2010 Community Max was increased by an additional 1,500 places to address high unemployment amongst young people. The expansion involved four regions where Māori youth unemployment is highest – Northland, Bay of Plenty, Waikato and East Coast.
Community Max projects include projects such as renovating public buildings, marae or public spaces, or improving access to local environment such as parks and reserves. It provides an opportunity for young people to build skills and work experience while contributing to the community.
Community Max subsidies are paid for up to six months, and are targeted to help prepare young people for further opportunities in the workforce.
How would you qualify for Community Max?
To qualify for Community Max funding, your project must:
- be of benefit to the community or the environment
- not displace existing staff or contractors
- be additional to the normal work of the organisation (e.g. a teacher aide position is generally not additional to the normal work of a school)
- be non-commercial
- be at least 26 weeks in duration and
- provide 30 hours work per week.
How do I register a Community Max project?
You will need to contact the Work and Income Employer Line on 0800 778 008. WINZ will need to confirm that your project meets the Community Max criteria.
How much could I receive employing someone who qualifies for Community Max?
Community Max provides a wage subsidy for young people for 30 hours a week. The wage subsidy will be equivalent to the minimum hourly wage, and will cover a total of 26 weeks.
Community Max also includes a training component, which will be funded for up to $1,250 (GST incl) for each young person.
Funding to cover supervision expenses will also be provided where there are six or more Community Max workers employed within your project. This will be paid at $12.75 per hour (GST incl).
Supervision expenses may include (but are not limited to):
- financial costs to the employer for taking on an additional staff member to provide supervision (this can be a Work and Income client or another person chosen by the employer)
- the cost to the employer for using existing staff to supervise Community Max workers.
What is a Modification Grant used for?
The Modification Grant pays for things like:
- ramps and handrails
- visual aids
- computer equipment
- other changes in your workplace.
Who can get a Modification Grant?
You may get a Modification Grant if:
- you have a disability that’s likely to last at least six months
- the modification will help you stay in work or get work
- you don’t get weekly payments from ACC
- you are a New Zealand citizen or permanent resident.
You should also normally live in New Zealand and intend to stay here.
How much could you get from a Modification Grant?
This depends on what you need. The maximum amount of a Modification Grant available to a participant in a 52 week period is $10,000 (including GST).
Before granting financial assistance for disabled people or people with ill health make sure they cannot receive help from another source, for example, through the Ministry of Health. Other forms of assistance should be sought first.
What is Taskforce Green?
Taskforce Green benefits the community by providing workers for community or environmental projects that would not otherwise be done.
The expected outcome for Taskforce Green is moving subsidised employees into unsubsidised work within eight weeks of completing the subsidised job or a significant increase in the employee’s willingness and capacity to work.
WINZ subsidises wages and/or training for people involved in the projects.
Who can qualify for a Taskforce Green subsidy?
The main points for employers to note are:
- your project must be a fixed term community or environmental project that would otherwise not be done, must not displace existing employees, and must provide full-time work for one or more people.
- any person can only work on a project for up to six months.
- all employers can take part, including community organisations, service groups, education/ local authorities, government departments, farmers or other private sector employers, so long as the criteria are met.
What do you have to do to receive a Taskforce Green subsidy?
All you have to do is:
- organise the project
- provide the materials
- pay any difference between the subsidy and the wage for the job
- pay GST, PAYE, ACC and holiday pay
- provide a safe and healthy work environment.
Brydon Davidson
June 2011 (last updated August 2011)