Recent JobKeeper Updates
JobKeeper Scheme
We have recently received updates on the JobKeeper Scheme where the ATO have released new operational guidelines. We are here to help you understand and navigate the tasks required over the coming weeks and have also included a more comprehensive overview of information on our new JobKeeper Resources Page.
Here is a summary of what we currently know (as at 16th April 2020) –
Timeline
Employers will be able to enrol in JobKeeper from 20th April 2020, via:
- an online form on the ATO website
- This must be lodged by the end of April
Then, after the 4th May 2020, the employer will notify the ATO of the eligible employees:
- Via STP
- Alternative system is not yet available
Decline in Turnover
Each individual entity must test if their individual entity turnover did decline. If so, they then apply either the 30% or 50% test (that was determined by the Group Aggregated Turnover).
Aggregated turnover of all entities that are connected or affiliated with you is used for the purpose of determining if the decline in turnover percentage of 30%, if the turnover of the group is below $1 billion or 50% if over.
NFPs registered with ACNC are only 15%.
Comparing Turnover: Compare one of:
> GST turnover for March 2020 with March 2019
> Projected GST turnover for April 2020 with April 2019
> Projected GST turnover for quarter starting April 2020 with same quarter in 2019
> Other (yet to be advised by the ATO)
Eligible Employees
You cannot claim for employees who
> Were first employed by you after 1 March 2020
> Left your employment before 1 March 2020
> Have been, or have agreed to be, nominated by another employer
Remember: An employee can only receive JK payments or support through ONE employer. The employee must agree to be nominated by you.
If you meet the eligibility criteria and want to start claiming the JobKeeper payment on behalf of your employees, you need to start paying them at least $1,500 per fortnight (before tax) and continue to pay them for as long as you keep claiming.
How much to pay?
An employer will usually get $3,000 a month per eligible employee for the two fortnightly periods in that month.
When do I have to pay?
For the first two fortnights (30th March – 12th April, 13th April – 26th April), the ATO will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by the end of April.
This means that you can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April.
You cannot claim the JobKeeper payment on behalf of employees who were not paid at least $1,500 before tax during each JobKeeper payment period.
You cannot claim the JobKeeper payment in advance. The JobKeeper payment is a reimbursementto an employer in arrears and cannot be paid in advance in any circumstances.
You as an Employee or Business Participant for JobKeeper
If you are an employee of your business, then you will follow all the guidance as an employee and complete all paperwork necessary for eligibility and continue to pay yourself at least the $1500 (before tax) per fortnight.
If you are a self-employed, sole trader, partner in a partnership or trustee in a trust then it is not necessary that you pay yourself $1500 per fortnight.
We are still waiting for the ATO to provide instructions on how you will nominate the individual to receive JobKeeper and how to provide bank details for the payment.
We are able to assist you with all steps and processes involved in the JobKeeper scheme which includes the setup in your payroll system and the respective reporting to the ATO. We will also be in communication with you and your accountants to ensure a consistent provision of service.
If you would like assistance, please visit our JobKeeper Resources Page or get in touch with one of our bookkeepers below.
The BookSitters Team
Resources
Our Bookkeepers
Justine Day: Southern Highlands / Bowral Bookkeeper
Amanda Graham: Southern Highlands / Bowral Bookkeeper
Petra Austing: Southern Highlands / Bowral Bookkeeper
Karin Evans: Gold Coast Bookkeeper
Pru Hall: Wollongong Bookkeeper
Jackie Short: Canberra Bookkeeper