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The Value of JobKeeper to Your Business

tax time

If you are eligible to receive the JobKeeper payment for all your eligible employees for the entire 6 month period, we have estimated that you would receive the total JobKeeper payment amount below:

This equates to $ 19,500 per employee or eligible business participant for over 6 months.

This is a great help to business cashflows during these difficult times, but as with anything involving regulation and the ATO, there is a risk…

OBLIGATIONS AND RISKS TO YOUR BUSINESS

If an incorrect claim is made or if the ATO in the future decides that you were ineligible to receive the JobKeeper payment, the ATO will require you to repay them any JobKeeper payments that you have received plus penalties and interest.

The key risks to you as the employer include:

  1. The employer certifies the facts provided to the ATO and the JobKeeper claim made.
  2. The employer receives significant JobKeeper payments for over 6 months. For example, an employer with 5 employees would receive $97,500, and an employer with 10 employees would receive $195 000.
  3. If the employer makes a mistake and is found to be ineligible by the ATO (for example, its turnover is not down by 30%), then they may have to repay all amounts received back to the ATO. This is not recoverable from employees (unless they confirmed they were eligible but were not)
  4. An employee ceases to be eligible if they cease employment during the life of this JobKeeper scheme.

Also, the ATO requires you to keep all records concerning your JobKeeper claim for 5 years.

TIMELINE OF ACTIONS YOU NEED TO TAKE

The ATO has specific actions that must take place within tight timeframes for an employer to receive the JobKeeper payment.

Employer Eligibility Assessment – NOW

  • Review ATO requirements for the business
  • Review ATO requirements for employees
  • Review ATO requirements for Business Participation Entitlement – Sole Trader, Partnership, Company or Trust
  • Document the fall in turnover % in case of future ATO audit

Identify Eligible Employees – NOW

  • Prepare a list of eligible employees
  • Prepare JobKeeper employee nomination notice for all eligible employees and ensure all notices are signed

Make Correct Wage Payments to Eligible Employees – NOW

  • Ensure your payroll software is correctly set up to record JobKeeper “top-up” payments
  • Pay the minimum $1,500 before tax to each eligible employee each fortnight (starting with the fortnight 30 March to 12 April) to be able to claim the JobKeeper payment for that fortnight
  • Continue to pay the minimum $1,500 to employees in every subsequent fortnight until 27 September 2020

Enrolment for JobKeeper – FROM 20 APRIL 2020 TO BE DONE BY 30 APRIL

Enrol for JobKeeper using ATO online services from 20 April 202

  • Provide employer bank account details for receipt of JobKeeper payment
  • Confirm if the applicant is entitled to a “Business Participation Payment
  • Specify the number of employees who will be eligible for one period and the number eligible for two periods
  • Get a confirmation that all employees the employer plans to nominate are eligible and the employer has notified them and has their agreement

Apply for JobKeeper Payments – FROM 4 MAY 2020

  • Apply to claim the JobKeeper payment using ATO online services between 4 May 2020 and 31 May 2020
  • Ensure all eligible employees have been paid $1,500 per fortnight
  • Identify the eligible employees from an STP prefill or by manually entering into ATO online services
  • Update your accounting system Chart of Accounts to ensure JobKeeper payments are coded correctly

Monthly JobKeeper Declaration Report – DUE BY 7TH OF EACH MONTH

Using ATO online services, report to the ATO using their Monthly JobKeeper Declaration Report on the following:

  • Reconfirm that your reported eligible employees have not changed
  • Input current GST Turnover for the reporting month
  • Input projected GST Turnover for the following month
  • Notify if any eligible employees have changed or left your employment
  • Getting this correct and done on a timely basis is essential. We can offer assistance for each of the steps above, including the monthly reporting.

Please reach out to our team for more information on (07) 3359 5244 or get in touch with us here.

What can business owners do to prepare for JobKeeper

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