JobKeeper Payment Webinar FAQs

Jobkeeper Webinar Faqs

The Australian Government and the ATO continue to update JobKeeper Payment FAQs on a daily basis to assist you with the latest information regarding the JobKeeper Scheme and what you need to know as an employer.

Click here to access the JobKeeper Payment FAQs from Treasury.

Click here to access the JobKeeper Payment FAQs from the ATO.

We have also created a JobKeeper Webinar FAQs that directly reflects the most common questions we received during our webinar. Here are our FAQs for your reference:

Casual employees:

Demonstration of decline in revenue:

If your business has a turnover of less than $1 billion and you can show or project a reduction in turnover of 30% or more you are eligible (if your business has a turnover of $1 billion or more you are eligible if you can show or project a reduction in turnover of 50% or more). Turnover is measured according to the current calculation for GST purposes and is reported on your Business Activity Statement (BAS). You may use an accruals basis of accounting to calculate both the current GST turnover and projected GST turnover as both calculations require you to include sales that you have made or are likely to make without any reference to when you are paid. However, if you prepare your activity statements on a cash basis, the ATO will allow you to calculate both the current and projected GST turnovers on a cash basis. The basis used must be the same for calculating your projected and current GST turnover. Typically, current turnover will equal your GST exclusive sales less your input taxed supplies. It is possible to use an accruals basis of accounting to calculate both the current GST turnover and projected GST turnover. If BAS is prepared on a cash basis, the current and projected GST turnover can be calculated on a cash basis. Once your business has qualified under the JobKeeper scheme there is no need to demonstrate an ongoing drop in revenue.

Businesses that have been in operation for less than a year will be assessed on a case by case basis by the Tax Commissioner. The Commissioner will have discretion to consider additional information that you can provide for your business in order to establish that your business has been impacted by the Coronavirus. The Tax Commissioner may also set out alternative eligibility tests in certain circumstances.

Conditions:

Leave:

Payment:

You will be required to report employee payments to the ATO on a monthly basis and the subsidy will then be reimbursed to the employer. The ATO will make payments to employers on a monthly basis and payments will be made no later than 14 days after the calendar month in which the fortnight ends.

If you have already run your payroll for March/April and any otherwise eligible employee has been paid less than $1,500 per fortnight, you are required to make “top up” payments to these employees (to ensure that they receive $1500 per fortnight) no later than 8 May to be eligible for the reimbursement for the first two fortnightly periods of the JobKeeper Scheme. Moving forward the ATO requires that payments are made fortnightly or monthly.

Qualification:

Certain eligible business participants (who are not employees), such as sole traders and partners in a partnership, may be eligible to participate in the scheme. However, only one individual from each entity can receive the JobKeeper payment. To be eligible, the individual must be actively engaged in the business carried on by the entity and must also meet all other eligibility criteria.

An eligible business operated through a company that pays director fees to non-executive directors, may nominate only one such individual to receive JobKeeper payments. However, a Director who receives a salary or wage as an employee, and who satisfies the other eligibility criteria, will be eligible to receive JobKeeper payments.

If you have severed the employment relationship with all employees by way of redundancy due to the COVID-19 pandemic post 1 March 2020, you can re-engage these employees and apply for the JobKeeper subsidy. Alternatively, if you have stood your employees down without pay due to the COVID-19 pandemic you can also apply for the JobKeeper subsidy. If your business has ceased operations and you have cancelled your ABN entirely, please reach out to one of our consultants for further assistance.

Clarification re Payment of Superannuation

An example was provided in the webinar regarding payment of superannuation to an employee receiving the $1,500 JobKeeper payment only, for work performed. Please be aware that in this circumstance the employee would receive $1,500 gross, less taxation.

The employer would be required to pay a 9.5% superannuation payment on top of the $1,500 amount as it would be ‘ordinary time earnings’.

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