JobKeeper Recap and Update

Applications are now open for The JobKeeper payment. Those hoping to access payments for the month of April will have to:

  • complete their online enrolment application by 30 April (including meeting the eligibility for the decline in turnover test), and
  • then confirm their eligible employees in a second stage from 4 May

The payments for the month of April will then be made to employers in the first week of May.

Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee.

Employers will need to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment for the fortnights they are claiming.  If claiming from the first fortnight, ie the fortnight commencing 30 March, any back payments or top up payments to employees up to the $1,500 per fortnight will need to be made by 30 April (i.e. a minimum of $3,000 per employee for the month of April).

Send the Employee Nomination Notices to all your eligible employees to complete and return to you by the end of April if you plan to claim JobKeeper payments for April 2020. Keep it on file and you may also provide a copy to your registered tax or BAS agent if you are using one.

The JobKeeper payments will be paid to the employer in arrears each month by the ATO and will be assessable income to the employer (as opposed to the cash boost on PAYGW which is tax free).

If employers do not continue to pay their employees a minimum of $1,500 per fortnight for each pay period, they will cease to qualify for the JobKeeper payment.

To be eligible for the JobKeeper payment, employers and their employees must meet a range of criteria – see https://business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/JobKeeper-Payment-for-employers-and-employees

Business owners who are not on the payroll but pass the business participation test can apply for the payment for one nominated individual (sole trader, partner on partnership, adult beneficiary of a trust, shareholder, or director of a company). A business owner is required to complete an Eligible Business Participant Nomination Notice

 

JobKeeper Key Dates

  • From 20 April: enrol for JobKeeper payment (see below).
  • By 30 April: enrol and pay your employees a minimum of $1,500 per fortnight to be able to claim JobKeeper payments for April.
  • 4 May onwards: identify your employees via your Payroll Software (by 30 April) or the ATO Business Portal from 4 May.
  • Each month: reconfirm eligibility (via Monthly Business Declaration).
  • If you need more time, you have until the end of May to enrol and identify your employees

 

How Do I Enrol?

If STA Accountants lodges your BAS, then we will enrol on your behalf (assuming you meet the eligibility criteria) and we will require you to complete a JobKeeper Checklist.

If you lodge your BAS, you will need to enrol via the Business Portal using your myGovID to login (Note – sole traders with no employees can apply through myGov).

See the following ATO guides for more information:

JobKeeper guide – sole traders

JobKeeper guide – employers reporting through STP

JobKeeper guide – employers not reporting through STP

 

Turnover Test                                                                                                                                                    

The test is satisfied where your GST turnover falls by at least 30% when compared with the relevant period in the prior year (either actual March 2020, projected April 2020, or the projected April to June 2020 quarter). Once you have satisfied this initial test, you will not have to re-qualify for subsequent months. However, there are monthly turnover reporting requirements. See https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/Applying-the-turnover-test/ for more details.

There is an alternative test available at the Commissioner’s discretion for new businesses or start-ups or in special circumstances where the prior year period may not be a reasonable comparison to the current year turnover.

For Xero users – there is now a turnover test calculator built in to the Activity Statement report where you can check your eligibility.

 

Monthly Business Declaration                                                                                                                                                             

Each month, you must confirm the eligibility of your business and your reported eligible employees. You must also provide information as to your current & projected GST turnover. This is not a re-test of your eligibility but rather an indication of how your business is progressing, to be used for information only (you only have to pass the turnover test once as per the initial application).

 

Tax Payments

If you’re having difficulty paying your tax, be it income tax or an existing payment arrangement, we encourage you to contact us as soon as possible so we can liaise with the ATO on your behalf, as they have a range of options to support clients through the COVID-19 period including deferral of tax payments and payment plans.