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Job Keeper Reminder

If your business is affected by the coronavirus, you may be eligible to access the JobKeeper payment to assist you to be able to continue paying your employees.

For a detailed explanation of the Job Keeper payment, please read our previous blog or contact us to discuss further. We have also put together a summary of frequently asked questions in relation to the Job Keeper payment, which sets out some of the details that were released after the initial announcement.

More information continues to be made available in relation to this stimulus measure and how business must register their interest, enrol with the ATO and report information on turnover and eligible employees.

To recap, Employers will need to pay eligible employees a minimum of $1,500 (before tax) per fortnight to claim the JobKeeper payment. This will be paid to the employer in arrears each month by the ATO. The first payments to eligible employers will commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020. If employers do not continue to pay their employees for each pay period, they will cease to qualify for the JobKeeper payment. To be eligible for the JobKeeper payment, employers and their employees must meet a range of criteria (see our previous blog post).

You will be able to enrol in the JobKeeper scheme from 20 April 2020 using an online form on the ATO website (the forms are not yet available on the ATO site).

We recommend that you register with the ATO if you have not done so already. After you register, 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, click here to register – JobKeeper payment updates.

Enrol for the JobKeeper payment (from 20 April onwards)

If your business satisfies the eligibility criteria (including the decline in turnover test and employee conditions), you can enrol for the JobKeeper payment with the ATO (or we can attend to this on your behalf). The steps involved to initially register with the ATO are as follows:

Step 1 – Register your interest and subscribe for JobKeeper payment updates.

Step 2 – Check you and your employees meet the eligibility requirements.

Step 3 – Continue to pay at least $1,500 to each eligible employee per JobKeeper fortnight (the first JobKeeper fortnight is the period from 30 March to 12 April).

Step 4 – Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf and check they aren’t claiming JobKeeper payment through another employer or have nominated through another business.

Step 5 – Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April. Keep it on file and provide a copy to your registered tax agent if you are using one.

Step 6 – From 20 April 2020, you can enrol with the ATO for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of April to claim JobKeeper payments for April.

Step 7 – In the online form, provide your bank details and indicate if you are claiming an entitlement based on business participation, for example if you are a sole trader.

Step 8 – Specify the estimated number of employees who will be eligible for the first JobKeeper fortnight (30 March – 12 April) and the second JobKeeper fortnight (13 April – 26 April).

Confirmation of eligible employees you will claim JobKeeper Payment for (available from 4 May 2020 onwards)

After the initial registration is complete, you can then apply for the JobKeeper payment for your eligible employees. This is a separate process to the initial registration and the ATO will request details of each eligible employee. The steps on how to report this information is set out below:

Step 1 – Apply to claim the JobKeeper payment by logging in to the ATO Business Portal

Step 2 – Ensure you have paid each eligible employee a minimum of $1,500 per JobKeeper fortnight before tax.

Step 3 – Identify your eligible employees in the application form by selecting employee details that are prefilled from your STP pay reports if you report payroll information through an STP enabled payroll solution, or manually entering employee details in ATO online services or the Business Portal if you do not use an STP enabled payroll solution. We can also assist with this by submitting a report on your behalf via the ATO’s online portal for tax agents.

Step 4 – Submit the confirmation of your eligible employees online and wait for the confirmation screen.

Step 5 – Notify your eligible employees you have nominated them.

Step 6 – The ATO will pay you the JobKeeper payment for all eligible employees after receiving your application.

Step 7 – Each month, you will need to reconfirm that your reported eligible employees have not changed through ATO online services, the Business Portal or via your registered tax agent. This will ensure you will continue to receive the JobKeeper payments from the ATO. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.

Step 8 – If your eligible employees change or leave your employment, you will need to notify the ATO through your monthly JobKeeper Declaration report.

If you use the ATO Business Portal, you will need a myGovID linked to your ABN in relationship Authorisation Manager (RAM). You can find out how to set this up at ato.gov.au/mygovid

What do you need to do for your employees

You need to identify which employees you intend to claim the JobKeeper payment for and tell them you intend to claim the JobKeeper payment for them.

You need to provide these employees with the JobKeeper employee nomination notice and ask them to return it to you by the end of April if you want to claim JobKeeper payment for April.

If your employees have multiple employers, they can usually choose which employer they want to nominate through. However, if your employees are long-term casuals and have other permanent employment, they cannot nominate you. They cannot receive the JobKeeper payment from more than one employer.

If an employee is currently receiving an income support payment, they must notify Services Australia of their new income to avoid incurring a debt that they will have to repay.

How we can help

We can assist you with accessing the job keeper payment and working through the ongoing compliance and reporting requirements associated with the payment.

Initial Assessment
  • Assessment of decline in Turnover
  • Employee eligibility
  • Employee payment plan
  • Start date fortnight advice
Registration & Notification
  • ATO registration
  • Employer and employee details notification
  • Employee Notification
Payroll System Set up advice
  • How to handle the above in your payroll system
Ongoing requirements
  • ATO monthly reporting including Employee information, current and projected turnover.
  • Ongoing Assessment including review of payments made to for continued eligibility

 

Please contact us should you wish to discuss the Job Keeper Payment in detail or if you require any assistance.