We know everyone is very keen to keep on top of the JobKeeper stimulus. The ATO have just released the update we needed with some specifics. The link to read in detail is: https://www.ato.gov.au/general/jobkeeper-payment/employers/
The JobKeeper stimulus is designed to keep employees attached to an employer rather than forced onto the Centrelink line and will provide $1,500 gross to an eligible employer for all their eligible empolyees. Make sure you check the employment status of your individual people as the rules do vary for say casuals and visa holders. https://www.ato.gov.au/general/jobkeeper-payment/employers/your-eligible-employees/
Payments will cover an initial date range starting in the first week of March and ending at the end of September.
A couple of key points confirmed (these are direct from the ATO) that we have been receiving questions on:
You will be able to enrol in the JobKeeper scheme from 20 April 2020 using an online form on the ATO website. After you enrol, you will later identify your specific eligible employees and submit the information to the ATO.
If you have registered with the ATO for an update on the JobKeeper Payment, you will soon receive a notification from the ATO when the online enrolment is available.
If you have not yet registered for information updates, see JobKeeper payment updates (https://www.ato.gov.au/Job-keeper-payment/) .
Some business participants are also entitled to the JobKeeper payment. This may include self-employed and sole traders.
Calculating your 30% fall in turnover you can compare either:
- GST turnover for March 2020 with GST turnover for March 2019
- projected GST turnover for April 2020 with GST turnover for April 2019
- projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter starting April 2019.
The first payments to eligible employers will commence in the first week of May 2020.
Before you enrol to receive JobKeeper payments, you need to notify each eligible employee that you intend to nominate them as eligible employees under the JobKeeper scheme.
You must tell those employees that you have nominated them as an eligible employee to claim the JobKeeper payment. They must agree to be nominated by you by completing the JobKeeper employee nomination notice (https://www.ato.gov.au/assets/0/104/300/387/d1aab7f2-fbe8-44b8-9ec1-4885ded1088e.pdf) and returning it to you for your records.
The nomination form does not need to be provided to the ATO however employers are required to keep a copy of the completed form as part of their record keeping obligations under the law.
If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment.
Employers should pay the minimum $1,500 before tax to each eligible employee each fortnight (starting with the fortnight 30 March – 12 April) to claim the JobKeeper payment for that fortnight.
Employers need to continue to pay employees they are claiming for either every subsequent fortnight until 27 September 2020 until their employees stop being eligible or your client opts out.
For the first two fortnights (30 March – 12 April and 13 April – 26 April), we (ATO) will accept the minimum $1,500 payment before tax has been paid for each fortnight even if it has been paid late, provided it is paid by the end of April. This means that they 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.
If your eligible employees earn less than $1,500 per fortnight before tax, the business must pay them $1,500 per for each fortnight to claim the JobKeeper payment. This ‘top up’ of their salary or wages will ensure they remain eligible.
Employers cannot pay their employees less than $1,500 before tax per fortnight and keep the difference.
We can assist with all Government Stimulus matters, please contact us if you need help.