We wanted to update you with the most current information for the JobKeeper Scheme as of 14 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. There are some awesome documents to download below.
We are here to help you
If you are reading this blog and you would like help from our team, please contact us as soon as possible. Even if you are not a client of Supervision right now we will do our best to help out. Our team have been tirelessly reaching out to as many of our clients as possible and providing help to all sorts of businesses & individuals, but we are always looking to help even more people.
Here is what we currently know and if you want us to take action on your behalf 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
- An Online form on the ATO website
- Must be lodged by end of April
Then after the 4th May the employer will notify the ATO of the eligible employees
- Via STP
- Manual Reporting System
Decline in Turnover
Each individual entity has to 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 % of 30% if turnover of the group is below $1b 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
We have attached a link to our worksheet below to calculate the decline in turnover for your business, please complete this and return to our office via email. This will assist in the application process for Job Keeper for your business and employees.
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 employee
Remember: Employee can only receive JK payments or support through ONE employer. And the employee must agree to be nominated by you.
We have attached the Job Keeper Nomination Form and an excel document to be completed by yourself to indicate the employees whom you will be claiming for under the Job Keeper stimulus. Please ensure each employee completes the attached employee nomination form and you fill in the attached excel document to indicate the eligible employees for your business.
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 $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.
Example of amounts paid to employers
[table id=25 /]
When do I have to 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.
Registering as Sole Trader, Partner, Trustee or Director for Company
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.
You will however need to register for the Job Keeper payments with the ATO.
Sole Trader – No forms necessary. You can register using your MyGov log in, Business Portal or engage your Tax/BAS agent to register on your behalf. You will still need meet the eligibility requirements as per entities with employees
Partnership – Please complete the attached JobKeeper Nomination Notice for Eligible Business Participants. You will need to meet the decline in turnover requirements. You will also need to register through the Business Portal or through your Tax/BAS agent. This form is only to be completed by the partner being nominated for the JobKeeper payment.
Trustee – Please complete the attached JobKeeper Nomination Notice for Eligible Business Participants. You will need to meet the decline in turnover requirements. You will also need to register through the Business Portal or through your Tax/BAS agent. This form is only be completed by the individual beneficiary of the trust being nominated for the JobKeeper payment.
Company Director or Shareholder – Please complete the attached JobKeeper Nomination Notice for Eligible Business Participants. You will need to meet the decline in turnover requirements. You will also need to register through the Business Portal or through your Tax/BAS agent. This form is only be completed by a director/share holder in a company being nominated for the JobKeeper payment.
Next Steps
- Complete Decline in Turnover Spreadsheet – see below
- Identify and send all eligible employees Job Keeper Employee Nomination form. For Sole Traders, Partnership, Trustees or Company Director complete Eligible Business Participant form
- Complete Authorisation for Supervision Group to apply and attend to monthly administration of Job Keeper with the ATO
- Complete Eligible Employee Spreadsheet
- Forward to Supervision Group Authorisation to Act, Employee Nomination Form, Eligible Business Participant (only for Partnership, Trustee and Director/Shareholder) and eligible employee spreadsheet
- Supervision Group will register your business for Job Keeper upon receipt of the above documentation
- Supervision Group will maintain monthly reporting with ATO.
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 to ensure a consistent and appropriate interactions and provision of service.
Please send us an acknowledgement of this information and consent for us to continue to keep you informed and to perform the steps needed to properly apply the government’s economic stimulus initiatives to you and your business.
Jobkeeper Employer Nomination Form
Jobkeeper Nomination notice for eligible business participants
