Timeline
Employers will be able to enroll in JobKeeper from 20th April 2020
· An Online Form on the Australian Taxation Office (ATO) Website will soon be available
· Should be lodged by the 26th April 2020
After 4th May 2020, Employers will notify the ATO of their eligible Employees using one of the following methods:
· Via STP
· Alternative System (to be advised)
Decline in Turnover
Each individual entity has to test that their turnover did decline. Aggregated turnover of all entities that are connected with you for the purpose of determining the decline in turnover as follows:
· Turnover less that $1Billion 30%
· Turnover more than $1Billion 50%
· ACNC Registered Charity 15%
For the purpose of comparing turnover, use one of the following methods:
· GST turnover for March 2020 with March 2019
· Projected turnover for April 2020 with April 2019
· Projected GST turnover for quarter starting April 2020 compared with quarter starting April 2019
· Other (to be advised by ATO)
Eligible Employees
You can not claim for employees who
· Were first employed by you after 1st March 2020
· Left your employment before 1st March 2020
· Have been, or have agreed to be, nominated by another Employer
· Casuals who were employed for less than 12 months as at 1st March, 2020
· Certain Visa holders
Remember – Employees can only receive JobKeeper payments or support through ONE Employer. The employee must agree to be nominated by you.
Employers can not choose which staff can be paid for JobKeeper - one in, all in for eligible employees
After you have worked out you and your employees are eligible
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 $1500 gross per fortnight and continue to pay them for as long as you keep claiming.
How to Pay
An employee will usually get $3000 per month per eligible employee for the two fortnightly periods in that month.
Example of payments paid to employers:
PAYMENT DATE
AMOUNT PER EMPLOYEE
May 2020
$3000 (for fortnights starting 30/3/2020 and 13/4/2020)
June 2020
$3000 (for fortnights starting 27/4/2020 and 11/5/2020)
July 2020
$3000 (for fortnights starting 25/5/2020 and 8/6/2020)
August 2020
$3000 (for fortnights starting 22/6/2020 and 6/7/2020)
September 2020
$4500 (for fortnights starting 20/7/2020, 3/8/2020 & 17/8/2020)
October 2020
$3000 (for fortnights starting 31/8/2020 and 14/9/2020)
When do I pay?
For the first two fortnights (30 March – 12 April, 13 April – 26 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 reimbursement from us 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 you terminated an employee after 1 March 2020, you can re-engage them, and they will be eligible if they met 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.
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.
The ATO are yet to provide the instructions on how you will nominate the individual to receive Jobkeeper and how to provide bank details for the payment.
Processing Payroll through your software package
Each software pack requires a specific set up for paying employees on JobKeeper. Please call me to discuss or set up for you. The software set up is important for STP reporting purposes.
This is a summary of information relating to JobKeeper as at the date of this post. Call or email me with details of your specific situation and I will try to assist.