New JobKeeper 1 July Test Date Means You Need to Reassess Your Employee Eligibility and Act NOW
Under the new 1 July employee eligibility test date for the JobKeeper Payment, employers MUST provide the employee eligibility notice form(s) NOW to all new eligible employees that are now entitled to receive JobKeeper.
Further to our announcement last week regarding changes to the JobKeeper Payment Scheme, the Government passed the legislation last Friday meaning for JobKeeper fortnights starting from 3 August onwards, any employee who met the JobKeeper criteria as at 1 July 2020 can now receive the JobKeeper Payment.
A number of new eligible employees will now be entitled to receive the JobKeeper Payment, including:
- Full time or part time employees who commenced employment after 1 March and were employed with you on 1 July;
- Casual employees who did not originally meet the set criteria for ‘long-term casual employee’ (12 months employment) as of 1 March, but have since met this criteria by 1 July;
- Employees who have since turned 16-18 years of age by 1 July and meet independence or study criteria;
- Employees who have obtained Australian residency and the required visa by 1 July 2020.
The “one in, all in” approach by the Government in relation to JobKeeper means that employers who are currently claiming JobKeeper must retest to ensure all NEW eligible employees as at the 1 July date are included in the JobKeeper scheme together with EXISTING eligible employees.
The new legislation requires the employee notice form to be provided to all new eligible employees by Monday 24 August, however the current ATO guidance simply advises this should be completed ASAP.
Please note, if you have no new eligible employees after applying the 1 July test date, there is no action required.
However under the “one in, all in” approach, employers are at risk of receiving penalties from the Fair Work Commission, should they not comply with the new eligibility criteria under the 1 July test date.
Wage Condition Due Date
The ATO have also set a date of 31 August for all employers to meet the wage condition (pay all eligible employees $1500 per fortnight before tax) for all employees that fall under the new 1 July eligibility test.
To claim JobKeeper payments for the August JobKeeper fortnights, you must ensure ALL eligible employees are enrolled for JobKeeper by 31 August, including any new eligible employees. Please note there are three JobKeeper fortnights in August which means you will need to pay $4500 gross to each eligible employee (new and existing) this month to satisfy the JobKeeper wage condition.
This is complex legislation and we have been assisting many businesses with their JobKeeper eligibility and enrolment enquiries and application processes. Our team at Allan Hall Business Advisors can assist you to navigate this process smoothly and efficiently. Please do not hesitate to contact us should you require assistance or have any further questions.