The Government and the ATO have just updated their process for applying for the JobKeeper payment. Below is what you need to do to claim this payment, and how we can assist you to claim the maximum amount.
JOBKEEPER PAYMENT OVERVIEW
JobKeeper is a Federal Government subsidy paid to eligible businesses effected by COVID-19 to cover the costs of their employee’s wages.
Affected employers will be able to claim a fortnightly subsidy payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months. This full amount of $1,500 must then be paid to all eligible employees, whether they are full time, part time or long-term casuals.
Here is a brief summary of how the JobKeeper payments are made:
- They are paid by the ATO within 14 days of month end.
- The first payment will be starting in the first week of May 2020.
- The eligible payroll periods are every 14 days, commencing 30 March 2020.
- Monthly employer payroll reporting is required to trigger the payment by the ATO – using Single Touch Payroll (STP)
The employer will continue to receive the subsidy payments for eligible employees while they are eligible for the payments. While the program is expected to run for 6 months, payments will stop if the employee is no longer employed by the business.
Business Participation Entitlement
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. A limit applies of one $1,500 JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.
OBLIGATIONS + RISKS FOR YOU
If a wrong claim is made or if the ATO in the future decides that you were ineligible to receive the JobKeeper payment, the ATO will require you to repay them any JobKeeper payments that you have received plus penalties and interest.
The key risks to you as the employer include:
- The employer certifies the facts provided to the ATO and the JobKeeper claim made.
- The employer receives significant JobKeeper payments over a 6 month period. For example, an employer with 10 employees would receive $195,000, and an employer with 20 employees would receive $390,000.
- If the employer makes a mistake and is found to be ineligible by the ATO (for example, its turnover is not down by 30%), then they may have to repay all amounts received back to the ATO.
- An employee ceases to be eligible if they cease employment during the life of this JobKeeper scheme.
Also, the ATO requires you to keep all records in relation to your JobKeeper claim for a 5 year period.
OUR WORK PLAN TO ASSIST YOU
The ATO has specific actions that must take place within tight timeframes for an employer to receive the JobKeeper payment.
These are the actions that you may undertake yourself and/or we can assist you with:
Employer Eligibility Assessment – NOW
- Review ATO requirements for the business
- Review ATO requirements for employees
- Review ATO requirements for Business Participation Entitlement – Sole Trader, Partnership, Company or Trust
- Document the fall in turnover % in case of future ATO audit
Identify Eligible Employees – NOW
- Prepare list of eligible employees
- Prepare JobKeeper employee nomination notice for all eligible employees and ensure all notices are signed
Make Correct Wage Payments to Eligible Employees – NOW
- Ensure your payroll software is correctly set up to record JobKeeper “top up” payments
- Pay the minimum $1,500 before tax to each eligible employee each fortnight (starting with the fortnight 30 March to 12 April) to be able to claim the JobKeeper payment for that fortnight
- Continue to pay the minimum $1,500 to employees in every subsequent fortnight until 27 September 2020
Enrolment for JobKeeper – FROM 20 APRIL 2020
- Enrol for JobKeeper using ATO online services from 20 April 2020
- Provide employer bank account details for receipt of JobKeeper payment
- Confirm if applicant is entitled to a “Business Participation Payment”
- Specify the number of employees who will be eligible for one period and the number eligible for two periods
- Get confirmation that all employees the employer plans to nominate are eligible and the employer has notified them and has their agreement
Apply for JobKeeper Payments – FROM 4 MAY 2020
- Apply to claim the JobKeeper payment using ATO online services between 4 May 2020 and 31 May 2020
- Ensure all eligible employees have been paid $1,500 per fortnight
- Identify the eligible employees from a STP prefill or by manually entering into ATO online services
- Update your accounting system Chart of Accounts to ensure JobKeeper payments are coded correctly
Monthly JobKeeper Declaration Report – DUE BY 7TH OF EACH MONTH
- Using ATO online services, report to the ATO using their Monthly JobKeeper Declaration Report on the following:
- Reconfirm that your reported eligible employees have not changed
- Input current GST Turnover for the reporting month
- Input projected GST Turnover for the following month
- Notify if any eligible employees have changed or left your employment
We fully understand that times are tough at the moment, and like for your business, our team’s wages need to be paid as well as other operating costs. There is a lot of work we need to do for you so that you can potentially receive the maximum JobKeeper benefit. Because of this, fees will apply. For further information on our fees please contact our office.
We have limited time to enrol you for JobKeeper (starting on 20 April 2020) and then making your first Application for JobKeeper Payments (starting on 4 May 2020).
Please let us know ASAP if you would like us to immediately start the above work for you.