Institute of Certified Bookkeepers

Treasury have released "JobKeeper Payment - Frequently Asked Questions", dated 5th April 2020.

In advance of the legislation (due on Wednesday 8th April)

Updated Treasury Factsheets

Summary of new information - JobKeeper

  • "Businesses must have paid their employees before they are entitled to receive the JobKeeper payment"  But see below
  • Agents do not need to register each client seperately for the information, unless information is to go to the client.
  • JobKeeper payments (because they are part of the employees pay) are to be paid through software and reported through STP.
  • If you are NOT using STP (ie closely helds) then there will be a manual claim process (online form but to be entered)
  • It is for the Full pay period starting on or after 30 March.
  • Drop in turnover can be proven by "other" evidence (not just compared to last year)
  • If drop in Turnover will be in April or later

"You can apply if you reasonably expect that your turnover will fall by 30 per cent or more (50%) relative to... a year earlier"

"...the business can start receiving JobKeeper Payment at a later time once the turnover test has been met"

  • JobKeeper payment will generally be paid to the employer and not used to offset tax liabilities
  • If on full workers compensation then no JobKeeper
  • If employee is partly paid wages by the employer while on workers compensation - jobkeeper applies
  • If an employee is on paid leave more than $1500, the employees pay doesnt change the employer will receive JK
  • If an employee is on paid leave less than $1500 then the employees pay must be topped up to the $1500
  • An employee on unpaid leave is eligble to receive JK payments
  • If being paid Parental Leave or Dad and Partner Pay (through Centrelink) then not eligibile for JK
  • Casual employement 12 month rule continues even if a change of owner of the business
  • Treasury said:  JK can be received for Apprentices and Trainees who also receive the 50% wage subsidy for March Quarter but cannot receive the wage subsidy for June quarter if on JK.  But:  JK doesnt apply to the March Quarter.

The Cash Gap

WHAT HAPPENS IF I DON’T HAVE THE MONEY TO CONTINUE PAYING MY ELIGIBLE EMPLOYEES UNTIL THE PAYMENTS ARE MADE?

The JobKeeper Payment is a reimbursement scheme that will be paid by the ATO monthly in arrears.

In cases where this may present cash flow difficulties, those businesses may want to speak to their bank to discuss their options. The banks have said businesses may be able to use the upcoming JobKeeper payment as a basis to seek credit in order to pay their employees until the scheme is making its first payments.

 

 An interesting answer that we require more detail

"IF I HAVE STOOD DOWN MY EMPLOYEES WITHOUT PAY AFTER 1 MARCH 2020 CAN I ‘BACK PAY’ THEM TO 30 MARCH 2020?

Yes. If you want to claim the JobKeeper Payment for your employees you will need to confirm your eligible employees want to be part of the scheme and arrange for them to be paid a minimum of $1,500 per fortnight before tax from 30 March 2020."

 

Trusts / Partnerships / Company Directors

Only ONE partner in a partnership can receive JK.  Partners cannot be employees of the partership.

Only ONE beneficiary of a trust, where the beneficiaries only receive distributions as the reward for service) can receive JK.  Noting Beneficiaries who are also employees willl receive JK as employee.

Only one Director can receive JK payments for "Directors Fees",  Directors who are employees will recceive JK due to being an Employee

**Recommend wait for the legislation on this**

Confirmed Noteworthy Details

  • Employee must have an employment relationship as of 1 March 2020
  • Employer must have a decrease in turnover of 30% (50% for over $1b turnover)
  • Turnover is defined by the GST Law and is only Australian based sales.
  • Self Employed will be eligible
  • First JobKeeper Subsidy will be recceived by employers after 1st May
  • Payments will be made monthly in arrears
  • Employees stood down are eligible
  • $1500 per fortnight flat rate subsidy for all eligible employees
  • JobSeeker recipients must tell Centrelink if they are receiving JobKeeper through the employer

Compliance

There will be a positive obligation on employers to establish their eligibility and that of their employees.  The ATO will cross-check payments and undertake activities to identify multiple or ineligble payments to individuals.

ICB Explains - Webinars

ICB will be running Webinars to further explain Government Initiatives

Wednesday 8th & Thursday 9th April - 12.30pm AEST  These will be update sessions

Previous Webinars explaining the announcement of JobKeeper and also other Stimulus Measures are available in our members webinar library

 

Resources

All things COVID-19

All things JobKeeper

  • 6th April 2020
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