JobKeeper Payment Update
The Federal Government’s JobKeeper payment scheme has now been enacted.
This update outlines a summary of what each eligible business needs to do now to become entitled to receive a payment.
The rules for this scheme are very detailed and everyone’s situation is different. Please contact us to discuss your own personal situation, and we will help you understand your entitlement. We are here to help.
Broad Details of the Scheme – revisited
The scheme aims to provide support to eligible businesses to maintain the employment of eligible employees by providing a payment of $1,500 per eligible employee per fortnight.
Payments will be made for fortnights beginning 30 March 2020 and will be made at the beginning of the month following the month the employee was paid. This means for example that payments made to employees in April 2020, will be reimbursed in early May 2020.
Eligible Businesses – all of the following apply
- On 1 March 2020, you carried on a business in Australia,
- You employed at least one eligible employee as at 1 March 2020,
- Your eligible employees are currently employed by your business for the fortnights you claim,
- Your business has faced a:
- 30% fall in turnover (if aggregated turnover is $1 billion or less)
- 50% fall in turnover (if aggregated turnover is > $1 billion)
- 15% fall in turnover for ACNC registered charities excluding schools and universities
Note – there is also a list of employers who will not be eligible, however importantly the vast majority of Small to Medium sized enterprises that satisfy the above criteria will be eligible.
- Permanent full-time or part-time employees at 1 March 2020,
- Long term casual employees (employed on a regular or systematic basis for at least 12 months) as at 1 March 2020,
- Were at lease 16 years of age on 1 March 2020,
- Were an Australian resident as at 1 March 2020,
- Did not receive government parental payments in the fortnight and
- Agree to be nominated by you to receive payment.
What you need to do now
- Register your interest in the system, if you have not already done so.
If you have not already done so, register your interest in the JobSeeker system at https://www.ato.gov.au/Job-keeper-payment/. This will ensure that once the registration portal is open you will receive a notification formally register and request payments.
- Determine if your business is eligible.
For the vast majority of businesses, you will need to demonstrate a drop in turnover of at least 30% when your compare either of the following periods:
- GST Turnover for March 2020 compared to March 2019,
- Projected GST Turnover for April 2020 compared to April 2019 or
- Projected GST Turnover for quarter starting April 2020 compared to quarter starting April 2019.
- Determine your eligible employees and have them complete the JobKeeper Employee Nomination Notice.
This needs to be completed by 30 April 2020 for each eligible employee for you to be entitled for reimbursements for April 2020.
The JobKeeper Employee Nomination Notice is attached for your convenience.
These forms do not need to be lodged but do need to be completed and held by you.
- Payments to employees
If your business is eligible, you will need to have paid each eligible employee $1,500 per fortnight for April 2020 commencing with the fortnight spanning 30 March 2020 to 12 April 2020.
Given this is the first month of the scheme, it will be OK to make sure that this is paid by 30 April 2020. From then on however payments at least fortnightly to employees are expected.
It is important to note that payments need to be made in April 2020 for you to be entitled for reimbursement. Also payments need to be made of at least $1,500 per fortnight to eligible employees for you to be eligible for reimbursement. This may require you to pay an employee more than their normal entitlements. If this is the case for any of your employees, please discuss it with us to determine a strategy for you to ensure your business gets value for these payments being made to the employees.
What you need to do later in April 2020 and early May 2020
- Formally enrol in the scheme – opens 20 April 2020
From 20 April 2020, you will be able to enroll in the scheme via Business Portal using your myGovID.
This must be done by 30 April 2020 to be entitled to reimbursement for payments in April 2020.
This process will include you confirming your businesses eligibility, providing bank details for the payment and an estimate of the number of employees that you believe will be entitled
- Confirm eligible employees and make first claim – opens 4 May 2020
Claims will be made via the Business Portal and will include you selecting eligible employees by either selecting data from pre filled details from Single Touch payroll data or manually entering your data if your business is not single touch payroll enabled.
What has been provided in this Alert is a summary of the important steps your business needs to take to be entitled to receive a payment under JobKeeper.
Now more than ever, being well planned and up to date with the financial aspects and reporting for your business is incredibly important if you are to receive the financial assistance your business needs.
We have a detailed knowledge of these new rules and can help you interpret them quickly. Please contact us to help you navigate this process, we are only a phone call away.