Employers: Eligibility & Getting Ready for the JobKeeper Payment

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April 19, 2020

If you are an employer, below is a summary guide of steps to take for checking your eligibility, enrolling and registering for the JobKeeper payments.

 

1. DETERMINE IF YOU ARE ELIGIBLE

Identify your turnover test period and comparison period

This test is satisfied where your projected GST turnover for the turnover test period falls short of your current GST turnover for the relevant comparison period, by the specified percentage (generally 30%).

If you calculate GST on a Cash Basis then you can either calculate your turnover based on Cash or Accrual basis
If you calculate GST on an Accrual basis, then you must calculate your turnover based on Accrual Basis.

 

For example, you would test:
March-20 monthly revenue against March-19 month revenue
April-20 projected revenue against April-19 monthly revenue
March-20 quarterly revenue against March-19 quarter revenue
June-20 quarter revenue against June-19 quarter revenue

You only need to satisfy the fall in turnover test once – you don’t need to test your turnover in the following months or quarters.

For those who do not have a comparative period, you will need to apply the alternative test. The information is yet to be release by the ATO and how it will be tested.

 

More detail on the turnover test can be found here

  

2. DETERMINE YOUR ELIGIBLE EMPLOYEES

  • Are currently employed by the eligible employer (including if you are stood down or re-hired)
  • Were a permanent FT or PT employee at 1 March 2020
  • Long-term casual employee (employed for at least 12 months) as at 1 March 2020 and not a permanent employee of another employer
  • Aged 16 years or older at 1 March 2020
  • Australian resident, the holder of a permanent visa or a Special Category (Subclass 444) Visa Holder as at 1 March 2020
  • Not in receipt of parental leave pay from the government or in receipt of worker’s compensation payments in respect of a total incapacity for work

Our previous posts is all about eligible employees, click here to read in detail.

 

3. NOTIFY YOUR EMPLOYEES – this is extremely important

You will need to complete the JobKeeper Employee Nomination Form. You and your employee will need to sign the form.
No need to send to ATO. You will need to retain this document for a period of 5 years.

The JobKeeper Employee Nomination form can be downloaded here, JobKeeper Nomination Form.

 

4.ENROL YOURSELF FOR THE JOBKEEPEER PAYMENTS WITH ATO

From April 20th, you can enrol for JobKeeper payment using the Business Portal via your with myGovID credentials*

*You need myGovID set up to be able to receive payment, otherwise your payments will be delayed. If you haven’t registered, you can register by accessing the link here.

Don’t forget to also register your employees via your accounting software.

 

5. PAY YOUR EMPOYEES

If you plan on claiming the JobKeeper payment from the period of 30th March to 14th you must:

– Pay the minimum $1,500 to each eligible employee per JOB Keeper fortnight. (First fortnight starts 30 march – 12th April.) Or
– you can make one combined payment of $3,000 for the first two fortnights by 26th April.

More information can be found here.

 

6.REPORT MONTHLY TURNOVER TO ATO

As a JobKeeper recipient, you will need to report your eligible employee details,payments and turnover to the ATO on monthly basis.You can do this via your accounting software such as Xero or JobKeeper Declaration Report(yet to be released) to the ATO.
 

A couple of items to mention:

– Section C of the JobKeeper Employee Nomination Notice is a declaration both by the Employee and Employer, it’s important to keep the lines of communication open during this difficult time.

– If you are in receipt of the Apprentice Wage Subsidy, you will not be eligible for the JobKeeper payment

– The ATO have released some integrity measures concerning the JobKeeper applications. At this stage, the ATO have taken the applications at faith at time of application. Just because have started to receive the payments it does not mean the ATO is not working behind the scenes and completing checks and eligibility.

In these challenging times, it is important that you seek advice if needed and should you have queries about the new tax measures and how they impact you, we can be reached here.

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