The Federal Government announced Friday that the employment test under stage 2 of the JobKeeper stimulus have come into effect early. This means that you may have employees that are now eligible for JobKeeper and the following needs to be done quickly:
- JobKeeper nomination form to be completed by the employee by Friday the 21st of August.
- Catch-up pay (if required) any newly eligible employee from 3 August to now by Monday the 31st of August.
- Include the newly eligible employees on the August JobKeeper declaration by Monday 14th of September to ensure your business receives payment from the ATO for those now eligible.
Below is an example from the legislation that makes it reasonably clear:
New employees engaged since 1 March 2020 and existing casual employee becomes a long-term casual employee on 1 July 2020
The ABG Café has qualified for the JobKeeper Scheme for the JobKeeper fortnight commencing on 30 March 2020 and later JobKeeper fortnights in respect of five employees that it employed prior to 1 March 2020 from the start of the JobKeeper scheme. However, ABG Café did not qualify for JobKeeper payments in respect of one of its employees, Tilly, who was employed on a casual basis and did not meet the definition of long-term casual employee on 1 March 2020.
Two of the other employees have since left, and ABG Café employed Bonnie, a new permanent ongoing employee in June 2020.
For JobKeeper fortnights beginning on or after 3 August 2020, ABG Café determines whether Bonnie is an eligible employee for which it can qualify for JobKeeper payments. Although Bonnie was not an eligible employee for the JobKeeper fortnights ending on or before 2 August 2020 (as she was not employed by ABG Café on 1 March 2020), Bonnie is an eligible employee because she meets the 1 July 2020 requirements. In addition to meeting other eligibility requirements, Bonnie had an ongoing employment relationship with ABG Café on 1 July 2020.
By 1 July 2020, Tilly has been employed on a regular and systematic basis for over 12 months and accordingly, ABG Café can now qualify for the JobKeeper payment in respect of Tilly for the JobKeeper fortnight starting on 3 August 2020 and later fortnights.
As always, contact us for any clarification or advice required.