The $1,500 JobKeeper Subsidy
Valued clients , JobKeeper Subsidy is here and the time frame to claim for April 2020 is very short and requires your immediate attention.
Following is a basic summary of the Government's new JobKeeper scheme. We urge you to consider carefully if this is applicable to your business.
Both the employer and each employee are responsible for assessing their eligibility before applying, with written supporting evidence. It is vital that each employee understands they can only claim from one employer as the ATO will not treat double-dipping lightly. If any overclaim occurs, repayment plus interest and penalties may apply.
The scheme extends to persons actively engaged in a business through a sole trader, partnership, company or trust – but not employed. This claim is limited to only one working owner in a partnership, company or trust. The same business revenue reduction test (down 30%) applies. This area is still being finalised.
As always we are here to assist you, so please contact us should you wish to discuss your individual situation, including the 30% decline in turnover required to qualify.
1. Set up a MyGovID to access your ATO Business Portal (if you have not already done so) – this will allow you to electronically register and report. ATO Setting up your MyGovID and Business Portal
1. Establish your eligibility as an employer. You MUST calculate a 30% downturn in your GST reportable turnover for one of the following periods:
- March 2020 compared to March 2019
- April 2020 compared to April 2019
- Apr-Jun 2020 quarter compared to Apr-Jun 2019 quarter (projected turnover based on current circumstances)
This is a once-off test, once eligibility is established you will not need to calculate again. WARNING – you must get this right or risk repaying the ATO plus penalties. ATO Employer Eligibility
3. Determine eligible employees - ATO Eligible Employees
4. Provide Nomination Forms to ALL eligible employees and have them signed and returned ASAP – you cannot claim without these. JobKeeper Employee Nomination Form JobKeeper Employee Nomination Form
5. REGISTER electronically for JobKeeper via the Business Portal (from 20 April 2020). This is different to the registration of interest you may have already completed.
6. Ensure all eligible employees (who have accepted nomination) have been paid at least $1,500 for the fortnights ended 12 April 2020 and 26 April 2020. These payments must have been made NO LATER than 26 April 2020 to qualify for the subsidy. These payments need to be recorded in your normal payroll system and reported to the ATO via Single Touch Payroll (where applicable).
7. Apply for the JobKeeper payment on the ATO Business Portal (from 4 May 2020).
8. Employers MUST then advise all eligible employees IN WRITING that they have been nominated under the JobKeeper scheme.
9. Ongoing monthly reporting will be required via the Business Portal.
IMPORTANT NOTE: This is a basic summary only. Each step has rules and regulations, and you are required to keep full documentation and supporting evidence. Links are provided as a reference only and we strongly advise to complete your own review of your individual requirements.
A full overview is available here: ATO JobKeeper Payment
If you require any assistance with any of the above steps, please contact our office. It is our intention to assist all our clients as much as possible, so please contact us to discuss your individual situation on 02 65432766.