The JobKeeper Payment Program is a Federal Government Wage Subsidy program to assist Businesses that have been economically affected by the Coronavirus to retain staff. It was announced Monday 30 March 2020 and legislation was passed on 8 April 2020.
Summary of Program
Government will provide $1,500 per fortnight per employee for up to 6 months
Employers must elect to participate through an application with the ATO and provide supporting documentation demonstrating a downturn in their business.
Employers need to report the number of eligible employees employed by the business on a monthly basis.
Eligible Employers will receive the payment for each eligible employee that was on their books on 1 March 2020 and continues to be engaged by that employer, including full time, part time, and long term casuals (that have been with the employer regularly for at least 12 months as at 1 March 2020). It also applies to employees who have been stood down since 1 March.
If an employee ordinarily receives less than $1,500 in income per fortnight before tax, their employer must pay their employee, at a minimum, $1,500 per fortnight, before tax.
If an employee ordinarily receives $1,500 or more in income per fortnight before tax, they will continue to receive their regular income according to their prevailing workplace arrangements.
Payments will be made to the employer monthly in arrears by the ATO.
More information is available in this summary Fact Sheet or via the Treasury website here. A series of Frequently Asked Questions has also been addressed and can be accessed here
Eligibility for Employers
their business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and
the business is not subject to the Major Bank Levy.
Eligible employees
An employee must be an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder.
Self-employed Individuals
Self-employed individuals will be eligible to receive the JobKeeper Payment where they have suffered, or expect to suffer, a 30 per cent decline in turnover relative to a comparable prior period (of at least a month).
Timing
The subsidy will start on 30 March 2020, with the first payments expected to be received by employers from 4 May onwards. Businesses can register their interest in participating in the Payment on the ATO website via this link and from 20 April 2020, will be able to formally Enrol and Apply via this page.
Importantly, you will need to enrol by the end of April to be eligible for April payments.
There will then be ongoing reporting from 4 May to confirm eligible employees. More information is included below from the ATO website.
Should you need advice or need to discuss your particular requirements, please contact us, Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au
DETAILED INFORMATION COURTESY OF THE ATO JOBKEEPER PAYMENT PAGES IS AS FOLLOWS AND IS ALSO ACCESSIBLE VIA THIS LINK
Enrol for the JobKeeper payment (from 20 April onwards)
You or a registered tax professional can enrol for the JobKeeper payment:
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 us 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)
You or a registered tax agent can apply for the JobKeeper payment for your eligible employees:
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, or
using a registered tax agent who will submit a report on your behalf through Online services for 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 – We 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 us. 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 us 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.