JOBKEEPER PAYMENT IN A NUTSHELL
JobKeeper is a wage subsidy (Reimbursement) paid through the tax system to eligible business impacted by the Coronavirus.
Eligible Employers who are enrolled will be eligible to receive up to $1,500 per eligible employee or eligible business participant per JobKeeper Payment Fortnight between 30 March, 2020 and 27 September, 2020. The payment will be made to eligible businesses in the month following the payment of wages (so April wages will be reimbursed in May) and only after required reporting has been completed.
Sole traders and other businesses with self-employed individuals are eligible for the JobKeeper Payment which do not pay wages but have experienced a downturn in turnover for the testing periods.
Wage Subsidy Financial Examples:
1 eligible person x 13 fortnights = up to $19,500
4 eligible persons x 13 fortnights = up to 78,000
9 eligible persons x 13 fortnights = up to $175,500
As the subsidy if a self assessment program, the ATO will be applying integrity measures that permit reviews of documentation for a period of up to 5 years.
For more information on JobKeeper payments and eligibility criteria visit the ATO Website.
JOBKEEPER ENROLMENT AND STEPS
Enrolment can be done internally by your business if you have access to the ATO Business Portal or can be completed by Stubbs Wallace at your request. Monthly reporting obligations will also be required via the ATO Business Portal each month.
- Check if you, as an employer, and your nominated employees meet the eligibility requirement.
- Notify eligible employees that you (their employer) intend to participate in the JobKeeper Scheme.
- Send your eligible employees the JobKeeper Employee Nomination Notice to complete and return to you. Confirm with eligible employees that they agree to you being the primary employer to receive JobKeeper Payments.
- Keep the Employee Nomination Form on file for five years.
- Pay the minimum $1,500 to each eligible employee per JobKeeper fortnight. The first fortnight starts on 30 March and ends on 12 April. Alternatively, you can make one combined payment of $3,000 for the first two fortnight (Paid by the 8 May 2020).
- Enrol for JobKeeper from 20 April using the Business Portal and authenticate with myGovID.
- Once enrolled, you then apply after 4th May to claim on April JobKeeper payments.
- You will need to report to the ATO on a monthly basis your current and estimate turnover, and eligible employees.
ARE YOU ENROLLED?
Please make sure to check you have enrolled. Many have simply registered interest which does not get you the cash subsidy. On enrolment you receive a 13-digit ATO Receipt ID and A PDF titled “Business enrolment for JobKeeper wage subsidy”.
EXTENSION FOR ENROLMENT
The ATO has now announced an extension of time for employers who wish to enrol for the first two JobKeeper fortnight to 31 May, an extension from 30 April. Crucially, for the first two fortnights that run from 30 March to 12 April, and 13 April to 26 April, the ATO will now accept the late payments of the minimum $1,500 per fortnight as long as they are paid by 8 May.
“This means that you can make two fortnightly payments of at least $1,500 per fortnight by 8 May, or a combined payment of at least $3,000”, said the ATO in an update on Monday.
With the major banks now stepping up with dedicated JobKeeper hotlines to provide bridging finance to businesses ahead of the ATO’s reimbursement.
FULL TIME STUDENTS AGED 16 AND 17 YEARS OLD
Full time students aged 16 and 17 years old who satisfy the basic eligible criteria, will no longer be eligible for JobKeeper Payment unless they are financially independent. This change will apply prospectively, so employers who have made the minimum $1,500 to those students who will now be ineligible for the payment, are not financial disadvantaged. This change will have significant impact on the hospitality and retail industries but will no doubt be welcomed by small businesses struggling to find cash resources to fund up front payment of wages to eligible employees.
CASH FLOW BOOST PAYMENTS
Business eligible for the Cash Flow Boost Payment that have lodged their March Quarterly or Monthly BAS have started to see credits on their accounts. For more information on the Cash Flow Boost Payments visit the ATO Website or contact our office.
BUSINESS VICTORIA $10,000 GRANT
The Victorian Government has launched the $500 million Support Fund to help small business survive the impact of Covid-19 and keep people in work. Victorian Business may be able to apply for a $10,000 grant. For more information and to apply visit the Business Victoria website.
NSW GOVERNMENT SMALL BUSINESS COVID-19 SUPPORT GRANT
The NSW Government is providing financial support to ease the pressures on small business as a result of Covid-19.
If your small business or non-profit organisation has experienced a significate decline in revenue as a result of Covid-19, you may be eligible for the small business grant of up to $10,000.
For more information and to apply visit the NSW Government website.