Institute of Certified Bookkeepers
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JobKeeper Payment for Director who is not an employee

  • Member in Practice
  • Practice Certificate
  • 20 posts
  • # 118568

My client has employees and a director who is not on the payroll. To enable the director to receive JK payment, do I have to setup the director on payroll and start paying the $3000 JK amount before 30/4/2020? If this is not the way, what's the process for JK to business participants?

 

Thank you for your help.

Mattie

  • Fellow in Practice
  • Practice Certificate
  • 49 posts
  • # 118583

Hi Mattie,

Director needs to complete an ATO Eligibile Business Participant form, then be nominated when completing the JobKeeper online enrolment form.

No need to pay the Director not on payroll the $3000.

Regards,

Vija

  • Member in Practice
  • Practice Certificate
  • 1 post
  • # 118642

Hello, Thanks for your question MattieP, I'm just having a same problem now... So if the director isn't set-up in Payroll, will the JK top-up still be paid?  

We have 2 business, 2 eligiblie directors, both about to receive JK payments via each eligiblie business, but physically being paid from only one business.  In XERO, how do I a process the JK payment not being "paid"?  Is it JK Top-up .01 then do a deduction of -0.01?  I'm not sure how STP will pick it up.

Thank-you,

SuzanneR


  • Fellow in Practice
  • Practice Certificate
  • 49 posts
  • # 118649

Hi Suzanne,

if the business is eligibile for JK, they enrol and nominate the Director (not on payroll) as the Eligible Business Partipant (they need to complete ATO EBP form).

contact the relevant software company for how to process the transactions.

Regards,

Vija

  • Member in Practice
  • Practice Certificate
  • 2 posts
  • # 118711

Hi I would like to clarify. Once you have enrolled the Business Participant for Jobkeeper via the portal and you receive the payment from the ATO do you pay the Business Participant via payroll? 

Thanks

Pip

Edited at 21 May 2020 05:05 AM GMT



Edited at 21 May 2020 05:05 AM GMT

  • Fellow in Practice
  • Practice Certificate
  • 49 posts
  • # 118720

Hi Pip,

An eligiible business participant is by definition someone active in the business but not on payroll. They personally don't receive the JobKeeper subsidy, the entity does:

https://www.business.gov.au/Risk-management/Emergency-management/Coronavirus-information-and-support-for-business/JobKeeper-Payment-for-sole-traders

Regards,

Vija

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