income and employment
what happens when young people who receive payments from msd also have income
what counts as income
Income is defined as:
- any money received (before income tax) which is not a one-off capital payment
- payments, capital payments or the value of credits or services received periodically that are made and used for an income-related purpose
- the value of any interest (before income tax) acquired which is not a one-off capital payment
- the value of goods, services, transport, or accommodation supplied on a regular basis.
For more information and examples visit Introduction - Map (workandincome.govt.nz)
earning income
A young person must let you know if they have any income.
You will need to send a task to YSSU to let them know about the young person’s income. Make sure you include:
- name of their employer (or other source of income)
- gross amount earned
- frequency of payment (for example, fortnightly), and
- pay period (for example, a three month contract).
YSSU will review their payments and action any benefit payment changes as required.
It’s important that the young person’s payments are reviewed as soon as possible to avoid any overpayment.
You will receive a notification from YSSU if the young person's payments are effected.
treatment of income
When a young person (or their partner) is receiving a payment and declares any income, you'll need to give information to YSSU so that they can:
- determine the source and the amount of income
- check the young person still qualifies for their payment and can meet their youth activity obligations
- check the young person's income is below the cut-out point
- check the period over which the young person will receive income
- review the rate of payment.
For information on how to charge specific types of income for example, Accident Compensation Payments and employment related income see types of income | MAP.
Benefit payment stopped or suspended
When a benefit payment stops, and the young person has declared income for a period without receiving any benefit payment, submit an income task to YSSU. They will assess the young person's entitlement to benefits during that period.
income from employment
Young people must tell you about any change in their circumstances that affects their entitlement or rate of benefit payment, like starting a job.
Full-time employment
If the young person starts in full-time employment, their benefit payment must be stopped from the date the young person begins working. They will no longer be entitled to receive the benefit payment because they will not be able to meet their youth activity obligations.
Part-time employment
A young person can receive a benefit payment while they are working part-time as long as they can meet the qualification of being in or available for, full-time education, training, or work-based learning.
MSD will need to know the amount the young person earns each week. This can be submitted in the My MSD app or via ART by you. If the earnings from the part-time or casual employment are higher than the cut-out point, then the benefit must be suspended.
Summer employment
If the young person starts full-time employment over the summer, their benefit payment must be stopped. The young person's benefit payment will remain suspended for up to 8 weeks.
If the young person intends to return to a benefit payment after their summer job, and if the period is longer than 8 weeks, contact YSSU to extend the suspension period before the 8-week suspension date.