JobKeeper Scheme – Businesses with Employees

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Following on from our JobKeeper Q&A Call, we wanted to update you with the most current information for the JobKeeper Scheme as of 16 April 2020.  The ATO has released the following operational guidelines. We are here to help you understand and navigate the tasks required over the coming weeks.

Here is what we currently know and for all these steps we will be providing you with authorities to enrol you in the system and templates to meet all your eligibility and record keeping requirements and help you determine your business eligibility.

Timeline

Employers will be able to enrol in JobKeeper from 20 April 2020 onwards.

  • An Online form via the Business Portal (or via your BAS/Tax professional)
  • Must be lodged by end of April

Then after the 4th May the employer will notify the ATO of the eligible employees.

  • Via STP (Single Touch Payroll)
  • Alternative system – not yet available

The exact steps to apply can be found HERE.

Decline in Turnover

Each individual entity has to test if their turnover has or will decline. If so, they then apply the 30% decline in turnover test.

Not For Profit’s registered with ACNC only have to show a 15% decline.

Comparing Turnover – compare one of the following:

  • GST turnover for March 2020 compared to March 2019
  • Projected GST turnover for April 2020 compared to April 2019
  • Projected GST turnover for quarter starting April 2020 compared to the same quarter in 2019
  • If none of the above is possible for your business then other options may be available


Eligible Employees

You claim for employees who:

  • Were first employed by you before 1 March 2020
  • Are still employed and active (still applies with stand down)
  • Have not been nominated by another employer
  • Is a casual employee for 12 months or more as at 1 March 2020

Remember:  Employees can only receive JK payments or support through ONE employer. And the employee must agree to be nominated by you.

Once eligibility is assessed for both employee and employer

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.

This also applies to employees that work and are paid less than the $1,500 per fortnight. The employer will need to top up the wage to $1,500 per fortnight.

How much to Pay

The minimum payment is $1,500 per fortnight to be eligible for the JobKeeper reimbursement.

That said, if employees are working ordinary hours that total above the $1,500 per fortnight, the whole amount of pay needs to continue to be paid in full. The employer will be reimbursed $1,500 per fortnight by the ATO.

For employees who are earning less than $1,500 per fortnight for their ordinary hours, the employer must top up the payment to meet the $1,500 minimum per fortnight to qualify for the reimbursement.

When do I have to pay?

The employer 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. Going forward, the $1,500 must be paid fortnightly, it can only be paid as a lump sum for the month of April.

For employees who are being paid above the $1,500 per fortnight, no change is needed.

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 reimbursement from the ATO to an employer in arrears and cannot be paid in advance in any circumstances.

Employees who were stood down or on long term leave

Employees who have been stood down from work under the Fair Work Act without pay may still be eligible employees as long as they were in your employment and met the eligibility criteria on 1 March 2020.

You will need to have paid them at least the minimum amount of $1,500 for each fortnight you claim in order to receive the JobKeeper payment.

Employees who have been terminated

If the employer terminated an employee after 1 March 2020, the employer may re-engage them, and they will be eligible if they meet the eligibility criteria on 1 March 2020.

If you want to claim the JobKeeper payment for employees you have re-engaged, you will need to:

  • confirm they want to be re-hired and participate in the JobKeeper scheme with you
  • re-engage the employees you want to claim for
  • start paying them a minimum of $1,500 (before tax) for each fortnight they are employed, and you claim for.

You will only be paid a JobKeeper payment for employees from the fortnight they were re-engaged. You cannot claim retrospectively for employees you re-engage.

Employee nomination form

Once you have assessed the above for your business and employees, you must complete the Employee Nomination Notice from the ATO available HERE and provide it to your employees.

Need more help?

We hope that the above information is helpful and has given you the confidence to approach the JobKeeper enrolment process. We are here to assist and can do the registration and all other necessary requirements or steps on your behalf if you would prefer.

To get our assistance with your JobKeeper application, setup and reporting, please do the following ASAP:

Step 1: Read these post in detail to check and confirm your eligibility.

Step 2: Fill in THIS AUTHORISATION FORM.

Step 3: We will contact you with the next steps you need to action depending on your business.

Please note: Costs may apply for us to do this work on your behalf. Please submit the form above to register your interest and we will contact you with information about costs that may apply to your circumstances.

Contact Us with any Questions you have about the JobKeeper Scheme.

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