The Australian Government has announced a wage subsidy scheme (JobKeeper) to help businesses affected by COVID-19. Under this scheme, eligible businesses will be able to access a subsidy from the government to retain and continue to pay employees. The JobKeeper Payment scheme will reimburse eligible employers $1500 per fortnight for each eligible employee.
The scheme will run for six months. From the first week in May, the ATO will reimburse participating employers monthly in arrears, $1,500 for each FULL fortnight per eligible employee paid by the employer. JobKeeper Payments will go to eligible employers who have registered for the scheme.
Eligible employers must pay their eligible employees at least $1,500 per fortnight for pay-days on or after 30 March. Employers must confirm eligible employees have been paid each month to trigger the ATO reimbursement process and provide some other supporting information.
Check if your business and employees are eligible for JobKeeper payments by visiting:
As an employer, to receive the JobKeeper Payment you must:
1. Enrol and apply for the JobKeeper payment on the ATO website and assess that you have or will experience the required turnover decline. (Make sure the ATO has your current banking details so they can pay your JobKeeper reimbursements.)
2. Provide information on eligible employees to the ATO. This includes information on the number of eligible employees engaged as at 1 March 2020 and those currently employed by the business (including those stood down or rehired). For most businesses, the ATO will use Single Touch Payroll data to pre-populate the employee details for the business.
3. Ensure that each eligible employee receives at least $1,500 per fortnight (before tax). For employees that were already receiving this amount from the employer, their income will not change. For employees that have been receiving less than this amount, the employer will need to top up the payment to the employee up to $1,500 before tax. And for those employees earning more than this amount, the employer is able to provide them with a topup.
4. Notify all eligible employees that they are receiving the JobKeeper Payment.
5. Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business.
Eligible employers can apply for the JobKeeper payment now via the ATO Business Portal. Employers can learn more from the JobKeeper payment from the ATO website.
Note: To be eligible to claim JobKeeper payments for the April period, employers must enrol before 30 April 2020.
What do employers need to do?
All details on the enrolment process can be found on the ATO website, but you must:
1. Fill in and submit the JobKeeper Payment - register your interest online form (if not done already).
2. Check your employer eligibility.
3. Pay employees at least $1500 per fortnight.
4. Notify employees of intent to claim.
5. Provide JobKeeper payment employee nomination notice to employee(s) for them to complete and return to you by the end of April.
6. Enrol with ATO by completing online form which includes:
Indicate if claiming entitlement based on business participation e.g. Sole Trader
Estimated number of employees eligible for the first and second JobKeeper fortnight
7. Ensure that Single Touch Payroll is setup
8. Enroll employees for JobKeeper Payments (through Business Portal or Payroll Software)
9. Pay employees at least $1500 per fortnight – potentially including some “topup” for payroll already processed during April.
10. Update your Jobkeeper pay items to report correctly to the ATO
11. File your Payruns with the ATO
ABC Business Solutions can assist with any of the processes above as a registered BAS Agent, or assist in the setting up of your Payroll Software.
Alternatively, if you require assistance with forecasting possible business scenarios to help you manage your resources and cash with “what if” scenarios, please contact us.
Please select a link below to go to the knowledge base to setup Exo Payroll and Xero Payroll.