Institute of Certified Bookkeepers

ATO advises and confirms on JobKeeper

14 April 2.20pm

The first set of guidance information from the ATO about the administration of the JobKeeper system.
Some of the information is confirming what was in the Law and the Rules.

There is new information (extracted below)

Refer the recent NEW webpages from the ATO
https://www.ato.gov.au/general/jobkeeper-payment/tax-professionals/

https://www.ato.gov.au/general/jobkeeper-payment/employers/

Timeline

Employers will be able to enrol in JobKeeper from 20th 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 (refer ICB how to pay / how to notify resources)

-       Alternative system – not yet available

 

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

More to follow

 

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 employer

Remember:  Employee can only receive JK payments or support through ONE employer.

Employee must agree to be nominated by you.

Nomination form is now available and is to be retained by the employer. It is not provided to the ATO.

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

Payment date

Amount per employee

May

$3,000 (for fortnights starting 30 March and 13 April)

June 

$3,000 (for fortnights starting 27 April and 11 May)

July

$3,000 (for fortnights starting 25 May and 8 June)

August

$3,000 (for fortnights starting 22 June and 6 July)

September

$4,500 (for fortnights starting 20 July, 3 August and 17 August)

October

$3,000 (for fortnights starting 31 August and 14 September)

When do I have to pay?

For the first two fortnights (30 March – 12 April, 13 April – 26 April), we 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.

Not yet available

Alternative tests for Decline in GST turnover

Sole Traders – ATO information not yet available

Notification of eligible employees – not yet available

GST Grouping – still to be advised

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 for, 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
  • ask them to complete the JobKeeper employee nomination notice and return it to you. You are required to keep this form as part of your records keeping obligations under the law.
  • 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.

 

  • 14 April 2020
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