JOBKEEPER 2.0

To claim payments under JobKeeper Extension (also known as JobKeeper 2.0), you will need to:

• Check that you satisfy the new decline in turnover test;
• Identify which tier each eligible employee will qualify for;
• Continue meeting the wage condition;
• Notify the ATO for which tier each eligible employee qualifies;
• Continue lodging monthly declarations by the appropriate date.

JOBKEEPER 1.0

Check that you as an employer meet the eligibility criteria, including:

• Calculate the reduction in turnover.
  • For the first JobKeeper fortnight starting 30 March, you can compare:
    • GST turnover for March 2020 with GST turnover for March 2019
    • projected GST turnover for April 2020 with GST turnover for April 2019
    • projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter starting April 2019.
  • ATO on how to determine a fall in turnover
  • Once you meet the test, you don't have to test again. If you don't qualify based on the above time periods, keep testing in the following months until you satisfy the test.
  • When: any time up to the JobKeeper enrollments opening on 20 April and no later than 30 April if you want to claim JobKeeper for April (update: the final enrollment date for April and May fortnights has been extended to 31 May)
• Identify eligible employees as soon as possible
  • Check that none of them are claiming the JobKeeper Payment through another employer or their own/family's business.
  • Complete the JobKeeper Employee Nomination Notice Form for each eligible employee and get them to complete their section of the form. Keep the completed forms in your records, they do not have to be lodged with the ATO. This needs to be done before you can enroll for the JobKeeper Payment.
  • When: any time up to the JobKeeper enrollments opening on 20 April and no later than 30 April if you want to claim JobKeeper for April (update: the final enrollment date for April and May fortnights has been extended to 31 May). For subsequent periods, employee eligibility will have to be reviewed in respect of each JobKeeper fortnight and any changes reported to the ATO.
• Pay the eligible employees at least $1,500 before tax during the relevant fortnight
  • You should pay your employees for each JobKeeper fortnight you plan to claim for. The first fortnight is from 30 March – 12 April and each JobKeeper fortnight follows after that.
    
  • You don't need to change your usual pay periods, only ensure that at least $1,500 before tax is paid during each relevant fortnight to each eligible employee.
  • When: for the first two fortnights only (30 March – 12 April, 13 April – 26 April), the ATO will accept the minimum $1,500 payment for each fortnight as having been paid even if it has been paid late, provided it is paid by 30 April (update: the final payment date for April fortnights has been extended to 8 May)

Enrol for the JobKeeper Payment

• Enrolment opened on 20 April
• You can do it yourself via the ATO Business Portal or we can do it for you as your tax agent. You will need to have MyGovID in order to access the Business Portal.
• For the first two fortnights (30 March – 12 April, 13 April – 26 April), you will need to provide an estimated number of eligible employees. These numbers will be confirmed later (from 4 May - see below).
• When: from 20 April and no later than 30 April if you want to claim JobKeeper for April (update: the final enrolment date for April and May fortnights has been extended to 31 May). If enrolling in a later period, you will need to do so by the end of the relevant fortnight (update: enrolments in relation to June and later fortnights have to occur by the end of the month in relation to which you are claiming JobKeeper).

Confirm eligible employees

• This can be done by you via the ATO Business Portal or we can do it for you as your tax agent.
  
• You will need to enter the employees details, whether from pre-filled Single Touch Payroll reports and/or by making manual entries. The ATO will pay the JobKeeper Payments once they have received this confirmation.
• Notify your eligible employees of having nominated them within 7 days.
• When: from 4 May and no later than 31 May. You will need to re-confirm eligible employees every month, by the end of the month for which you are claiming.

Receive payments

The ATO will pay you for each eligible employee monthly in arrears beginning in May 2020. Payments will be made from the first week of May. An employer will usually get $3,000 a month per eligible employee for the two fortnightly periods in that month. The ATO is required make payments within 14 days of the end of each calendar month or within 14 days of being satisfied that the business is entitled to the JobKeeper Payment, whichever is later.

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Liability limited by a scheme approved under Professional Standards Legislation.

The content of this newsletter is general in nature. It does not constitute specific advice and readers are encouraged to consult their Ruddicks adviser on any matters of interest. Ruddicks accepts no liability for errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. This information is current as at 16 April 2020, and was published around that time. Ruddicks particularly accepts no obligation or responsibility for updating this publication for events, including changes to the law, the Australian Taxation Office’s interpretation of the law, or Government announcements arising after that time.

Any advice provided is not ‘financial product advice’ as defined by the Corporations Act. Ruddicks is not licensed to provide financial product advice and taxation is only one of the matters that you need to consider when making a decision on a financial product. You should consider seeking advice from an Australian Financial Services licensee before making any decisions in relation to a financial product. © Ruddicks 2020