Detailed information regarding the application for the JobKeeper Payment Scheme has now been made available by the ATO. If your business has been largely impact by the COVID-19 Pandemic, we encourage you to apply, should you meet eligibility criteria.
The ATO has created specific JobKeeper guides to provide you with a high-level summary of the JobKeeper Payment Scheme to suit your unique business structure. These include key dates, how to prepare and the steps to enrol for the payment, identify and maintain your eligible employees and make your monthly business declaration.
We encourage you to select the appropriate guide for your business structure and follow the step-by-step instructions from the ATO to complete your application.
ATO JobKeeper Guides:
- JobKeeper Guide: Sole Traders
- JobKeeper Guide: Employers reporting through STP
- JobKeeper Guide: Employers not reporting through STP
To summarise, every eligible business, regardless of the business structure, is required to complete the following steps to apply for the JobKeeper Payment Scheme:
1. Determine Your Eligibility as an Employer
Eligibility for the JobKeeper Payment scheme is primarily based on a reduction in turnover. To calculate your eligibility:
- Identify turnover test period (monthly or quarterly);
- A comparable turnover period must then be analysed against the turnover test period (comparison from 2019);
- Calculate applicable JobKeeper GST turnover;
- Determine the turnover reduction that applies to your business (e.g. SMEs require reduction in turner of 30% or more);
- Calculate if your GST turnover from the test period (2020) meets turnover reduction percentage appropriate for your business.
If there is not an appropriate comparison period, your business may be required to pass an alternative test to determine eligibility.
The ATO has outlined the details of the alternative test here.
2. If You Are an Eligible Employer – Complete a JobKeeper Enrolment Form
Eligible employers or their accountant, can access the JobKeeper enrolment forms by logging into the ATO’s Business Portal. You will need to log into the portal using your MyGovID, which is linked to your ABN in Relationship Authorisation Manager (RAM). If you haven’t created your MyGovID, here are step-by-step instructions detailing the process.
Please ensure that your entities are linked by MyGovID. If you have any issues linking your entities, please contact your Allan Hall Accountant.
Applications will close at the end of May, however we encourage you to submit your application as soon as possible (before the end of April) to receive the first wave of reimbursements.
Please note, Allan Hall is able to complete the JobKeeper Enrolment form on your behalf. If you would like assistance, please contact your Advisor.
3. Nominating Your Eligible Employees
You are required to notify each eligible employee that you intend to nominate them for the JobKeeper Payment Scheme. You are also required to communicate your nomination to the eligible employee. The eligible employee must agree to this nomination. By agreeing, they must fill out the JobKeeper employee nomination notice and return it to you, the employer, for your records, before the end of April (if wanting to claim JobKeeper payments for April). You are not required to submit this notice form to the ATO and you must keep a copy of this notice form as part of your record keeping.
The ATO has provided a template if you wish to create your own notice form. Click here for the ATO’s template guide.
The process for nominating eligible business participants (such as a partner in a partnership, an adult beneficiary of a trust, or a shareholder or director of a company) or sole traders differs. Click here to find out the application process for eligible business participants.
4. Reconfirm Business Eligibility Monthly
The ATO requires you as an employer to reconfirm the eligibility of your business and your eligible employees every month.
You will also be required to provide information on your current and projected GST turnover, indicating the progression of your business under the JobKeeper Payment Scheme.
Each month you are required to:
- Pay each eligible employee at least $1500 per fortnight;
- Log into the ATO’s Business Portal to: review the number of eligible employees for each JobKeeper fortnight, update eligible employee details and eligibility where needed, calculate your current and projected GST turnover, re-confirm your contact details and payment details.
Processing JobKeeper Payments in Your Payroll Software
Xero, MYOB and Quickbooks have now released guidance on how to set up the JobKeeper Allowance in their respective software packages.
We have included links to the Xero, MYOB AccountRight, MYOB Essentials and Quickbooks support pages to assist with setting up the payments.
If your business uses another software not outlined above, or if you have any further questions regarding the processing of JobKeeper Payments, please contact your Allan Hall Advisor.
Also as a reminder, Single Touch Payroll (STP) will be mandatory for all payroll reporting from 1 July 2020. If you have not yet moved to an STP platform, we recommend Xero’s Payroll Only plan (for 1-4 employees) as a simple, easy to use, STP compliant, payroll product. This payroll only plan is offered at $10 per month and as a preferred partner we can access a 50% discount for the first 6 months which we can pass on to you. Please contact us if you would like assistance with setting this up for your business.
For further information regarding your businesses application to the JobKeeper Payment Scheme, please visit the ATO JobKeeper Payment information page found here. Alternatively, please do not hesitate to contact your Allan Hall Advisors should you have any specific questions regarding the application process for the JobKeeper Payment Scheme.