Jobkeeper Keep the Team

JobKeeper Update

The jobkeeper payment is intended to assist businesses affected by the Coronavirus to cover the costs of wages of their employees

For the full legislation and what is offered with examples, please go to www.treasury.gov.au and click on the Support for Businesses and Employers then click on JobKeeper payment

Fact sheet – Supporting businesses to retain jobs.

Full legislation and all the Rules is found here: https://www.legislation.gov.au/Details/F2020L00419

JobKeeper Payment Fact Sheet: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_supporting_businesses_1.pdf

Employer Obligations: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_Info_for_Employers_1.pdf

Employee Obligations: https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_Info_for_Employees_1.pdf

Some of The Rules:

  • Must have had ABN prior 12th March 2020
  • Amount included or made a taxable supply 1/9/19-12/3/2020 – (Reported thru lodgement of BAS) showing the entity is actively engaged in business
  • Business annual turnover is less than $1 billion and they estimate their turnover has fallen or will likely fall by 30 per cent or more; or
  • Business annual turnover of $1 billion or more (or is part of a consolidated group for income tax purposes with turnover of $1 billion or more) and they estimate their turnover has fallen or will likely fall by 50 per cent or more; and
  • Their business is not subject to the Major Bank Levy
  • Must keep paying staff
  • Report employees’ wages using Single Touch Payroll so ATO can conduct compliance checks that JobKeeper payments are being passed on to employees
  • Must report monthly to the ATO your turnover figures. The ATO is allowing businesses to move their GST/PAYG reporting from quarterly to monthly to make this reporting tool easier to comply with. Contact our office if you require assistance from our BAS team to help you with this
  • You must cash roll your wages until the first payment in early May is released (backdated to 30th March and paid in arrears) this should help cash roll your staff moving forward
  • Staff must have been on the books from the 1/3/2020 as permanent employees ie; full-time, part-time or long-term casuals (longer than 12 months) and still employed even if stood down or on paid / unpaid leave
  • Jobkeeper is for any wages paid from 30/3/2020
  • The payment is only for 6 months – ending 27/9/2020
  • The full amount is paid to your business and must be paid to your employees (less PAYGW)
  • You must tell your staff your are applying for JobKeeper for them
  • Does not accrue Superannuation
  • If your business is still operating and paying wages, you are not entitled to claim and the ATO / Government thank you very much for keeping the Australian Economy going (as do we!)

How do I Apply?

Via to ATO online application process which should be rolling out over the next week.  Information to be provided will include: AGN, TFN, declaration of business activity (lodged via BAS).

Employers must elect to participate in the scheme via the ATO online application process which should be available around the 20th April 2020.  You will need to provide supporting information such as ABN, TFN, declaration of business activity (lodged via BAS).

But I have already Registered

All that happens by registering was ensuring your details were lodged with the ATO to keep up to date with the changes as they rolled out of Parliament.  It doesn’t do anything else.

Partnership Rules

First and foremost, you can apply.  However similar criteria to Trusts, Company with a Director Fee, such only 1 partner of the partnership can be nominated with their employees.

Trust, Company with a Director Fee

They can register even if they aren’t on the PAYG system. But only one Director, one Shareholder.  Nominate the Director who would benefit most ie still working in the business

Some Employer FAQs:

  • If an employee commenced after 1/3/20 as full-time, part-time but was stood down they would be eligible
  • Casual Employees unless more than 12 months from 1/3/20 is not eligible to claim
  • Fixed term contractors are eligible as per the contract
  • If my casual employee has multiple jobs – the employers elect, are they part of our program or already in the program with another employer – The ATO will determine who would be the primary employer. They don’t have to sacrifice other work and will also get the JobKeeper allowance.
  • My staff are on Paid or unpaid leave – they still receive the payments
  • My employee is on Paid Parental Leave – is not eligible UNLESS employer is paying the paid parental leave
  • My employee is on workers compensation – if doing alternative work then yes they are entitled but if they are not working and being fully supported thru workers compensation they are NOT eligible for JobKeeper
  • I have let my staff go and they are on Jobseeker – re-employ them, stand them down and put them on JobKeeper
  • I pay my staff less than $1500 gross a fortnight – top up their wages to meet the $1500
  • I pay my staff more than $1500 gross a fortnight – Fantastic!! Keep paying them and the Government will chip in $1500 each fortnight towards their payment to give you some cash relief
  • I can’t afford to pay my staff during April – there are State Government grants and incentives to assist with payment of employees and other costs. Check out your local State or Territory website and see what you are eligible for
  • My Employee resigned – they are not eligible
  • Do I have to pay tax on the $1500? Yes it is classified as ordinary wages but does not accrue Superannuation. However SGC is still payable on any normal hours worked as per normal award.  Example: Employee is paid a normal wage of $1000 per fortnight. You will now pay the employee $1500 (less PAYGW) per fortnight. $1000 will incur SGC, the $500 wont.   The full $1500 will be reimbursed to your business as you have already paid your employees the $1500 minimum.
  • My employee is seeking JobSeeker payment – they need to let Centrelink know that you as their employer is applying for Jobkeeper on their behalf. The ATO will data match this anyway so will know if any employee is receiving both and will cancel one.

OMG My Head Hurts!!!

We know you are really good at what you do, but so are we.  We can’t make coffee to save ourselves but we are really good at keeping you compliant so your business can trade again and make those coffees you are awesome at with your team right by your side! #weareallinthistogether #wewilltradeagain #doorswillopen

  • Now more than ever is the time to engage the services of a registered BAS Agent who can help you with this payment.
  • We can set you up for Single Touch Payroll
  • We can set you up on a simple to use cloud-based accounting system such as Xero or Quickbooks Online to make your reporting compliance with the ATO easier than ever to manage
  • We have offices in Perth and Victoria and can assist you remotely using Zoom
  • Our fees are really affordable and fully tax deductible
  • We are fully registered, insured and up to date with all the Government Stimulus’ affecting Businesses during the Coronavirus
  • Don’t ask Dr Facebook! Ask us – those in the know –

We are OPEN for business so call us today on 0401694393 or check our website: www.basandbalances.com.au and see how one of our friendly BAS agents can help you with your compliance to ensure you meet the ATO requirements and receive any stimulus your business may be entitled too.

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