What is JobKeeper?

The JobKeeper payment is here to help keep Australians in jobs and support businesses affected by COVID-19. Entitled businesses must ensure that each eligible employee receives at least $1,500 per fortnight (before tax):

For employees that have been stood down, your employer must pay you, at a minimum, $1,500 per fortnight, before tax.
For employees that have been receiving less than this amount, the employer will need to top up the payment to $1,500 per fortnight, before tax.
For employees that were already receiving this amount from the employer they will continue to receive their regular income according to their prevailing workplace arrangements.
For those employees earning more than this amount, the employer does not have to pay them more but is able to provide them with a top-up at their discretion.
The payments are a safety net to ensure that all employees that continue to be engaged by employers will receive a minimum payment of $1,500 per fortnight.

Key Dates

April

For the first two fortnights (30 March – 12 April, 13 April – 26 April), a minimum $1,500 payment for each fortnight has to be paid by employer, provided it is paid by the end of April. This means that employer can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April.

Payment Deadline APRIL 30.

April 20th

Enrol using the online form – We will be working with all our clients to complete their online forms.

JobKeeper Program Enrolment Deadline APRIL 30.

May 4th

Confirm eligible employees. The forms need to be provided to all the employees and they have to sign and return these forms to you.

How we will help

We will work with you to gather all requisite information and submit all the information to ATO via Tax Agent portal.
As your tax Agent, we will assist you throughout the process as well as for the continuing period of this Job Keeper compliance. All the accounts need to be updated as soon as possible.
We will be required to submit the Actual financial position as on 30th March 2020 as well as projected Cash Flow for next 6 months by 4th May 2020. From there on, ATO will require monthly updated Financial position along with updated forecast of cashflow position and this will need to be submitted by 7th of each month.

Scenarios & Examples

Scenario 1

The employee keeps working but works at reduced hours. Say the employee is working equivalent of $500 per week. But as per job keeper, they need to be now paid $750.00 per week. Both these amounts are pre-tax.

The super implication will be:

Super to be paid on $500
Employer discretion for the balance $250, whether to pay super or not. If super paid, it is additional cost to employer and cannot be adjusted from the $750.00 per week Job keeper payment.

Scenario 2

The employee keeps working but works at reduced hours. Say the employee is working equivalent of $800 per week. So, he has to be paid $800.00 and not $750.00.