If you’re experiencing a downturn in profit as a result of coronavirus, we’ve put together this blog outlining what employers need to know about the Jobkeeper Payment Scheme.
The scheme is a lifeline for many businesses and employees, allowing eligible employers to keep paying eligible staff through the crisis.
The payment is a fixed amount of $1,500 a fortnight for each eligible employee, which will be reimbursed to eligible employers.
Jobkeeper Payment Scheme: Are you an eligible employer?
Employers and employees have to meet a range of criteria to be eligible.
- On March 1 2020 you had at least one eligible employee employed
- On March 1 2020 you were a not-for-profit organisaton which pursued objectives predominantly in Australia, or you carried on a business in Australia
- The eligible employees are employed by your business for the fortnights claimed
- A business with an aggregated turnover of $1billion or less has had or is likely to have a 30 % fall in turnover
- A business with an aggregated turnover of more than $1 billion has had or is likely to have a 50% drop in turnover
- ACNC-registered charities, other than schools or universities, has had or is likely to have a 15% decline in turnover
- Your business must not be in one of the ineligible groups
Employers must be paying their eligible employees at least $1,500 to qualify for the payment.
More information can be found on the ATO website here.
Frequently Asked Questions About the Jobkeeper Payment
Can the Jobkeeper payment be claimed in advance?
No, it can’t be paid in advance, it is a reimbursement from the ATO.
Those employers who are eligible will receive the first payments in the first week of May.
Are employees who’ve been stood down without pay still eligible?
They may be eligible if they were in your employment on March 1 2020 and met the eligibility criteria. Employers must have paid them at least $1,500 for each fortnight they claim for.
Businesses can also re-engage employees who stopped working for them after March 1 and will be eligible to claim for the fortnights after they were re-engaged.
Can you pay your employees less than $1500 a fortnight and keep the difference?
No. Your nominated employee must be paid at least $1500 per fortnight before tax to be eligible to claim payment for that fortnight.
What if my eligible employees earn less than $1,500 a fortnight before tax?
They must be paid at least $1,500 before tax for each fortnight for you to claim the JobKeeper payment. Any additional amount is considered is a ‘top up’ of their salary or wages and will allow them to remain eligible.
What if my eligible employees earn more than $1,500 a fortnight?
Employers should keep paying their normal wage, but only $1,500 a fortnight will be received per eligible employee.
What if I pay my employees monthly?
The jobkeeper payment can be allocated between fortnights even if you usually pay staff monthly. For example, if your pay cycle is every four weeks, the employee must have received at least $3,000 for that time.
When Can Employers Enrol for the Jobkeeper Payment Scheme?
Employers can then enrol for the scheme via the ATO website from April 20, 2020.
But, before enrolling employers must complete an employee nomination notice, so their employees are aware they intend to participate in the scheme and can agree to receive payments that way.
Once they have agreed, the nominated employee must also complete the form and return it to you by the end of April.
How Stellar Accounts can help with Jobkeeper Payments
We can help you throughout this process:
- Determine eligibility – $99
- Make initial application – $155
- Manage process and lodge monthly financial information to ATO – $99/mth
*The above fees do not include any bookkeeping or preparation of financial information and can be quoted separately.
What employers need to know about the Jobkeeper Payment Scheme
If you’re a business owner who needs help with the scheme, reach out to the friendly team at Stellar Accounts today on 0428 887 104. It doesn’t matter where you are in Australia – we can help.
Stellar Accounts is Brisbane’s leading small and new business accounting firm. We have a reputation for simplifying your accounting, tax and bookkeeping needs so you don’t need to stress or worry.
With more than 20 years’ experience across a wide array of industries – our clients (typically small and medium sized businesses) – gain a distinct advantage over their competitors because we keep them in the loop of the latest information and regulatory requirements. Call us on 0428 887 104.
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