Under the JobKeeper payment, businesses impacted by the coronavirus will be able to access a subsidy from the Australian Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.
You can now enrol for the JobKeeper payment by logging into the ATO Business Portal. You should select ‘Manage employees’ then the link for the JobKeeper payment.
Prior to enrolling you should follow the below steps to ensure your business and employees meet the eligibility requirements:
Step one: Confirm your business meets the eligibility requirements, including the turnover test.
Broadly speaking, your business will be eligible for the subsidy if:
- the business has a turnover of less than $1 billion and their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago (of at least a month); or
- their business has a turnover of $1 billion or more and their turnover will be reduced by more than 50 per cent relative to a comparable period a year ago (of at least a month); and
- the business is not subject to the Major Bank Levy.
Further info is available at https://www.ato.gov.au/general/jobkeeper-payment/employers/eligible-employers/
Step two: Check your employees meet the eligibility requirements.
Broadly speaking, eligible employees are employees who:
- are currently employed by the eligible employer (including those stood down or re-hired);
- were employed by the employer at 1 March 2020;
- are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
- are at least 16 years of age;
- are an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder; and
- are not in receipt of a JobKeeper Payment from another employer.
Further info is available at https://www.ato.gov.au/general/jobkeeper-payment/employers/your-eligible-employees/
Step three: If you meet the eligibility requirements, ensure all eligible employees are paid $1500 per fortnight (the first fortnight for JobKeeper is 30 March to 12 April)
Step four: Notify eligible employees you intend to claim JobKeeper on their behalf.
Send them the JobKeeper employee nomination notice to sign and return by the end of April available at https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/
Step five: Identify and maintain your eligible employees
You or your registered tax or BAS agent need to identify each eligible employee that you will claim the JobKeeper Payment for and maintain their details each month.
How you do this will depend on if you have STP enabled software. See the below link for further information.
Step six: Make a business monthly declaration
Every month, you must reconfirm your reported eligible employees via the Business Portal.
Liquid HR has developed a number of JobKeeper resources to help support our clients navigate the new payment including:
- JobKeeper – intent to apply notification letter to issue with the employee nomination notice
- JobKeeper FAQ – covers questions related to eligibility, employees already stood down, payment, timeframes and application and JobKeeper enabling directions
- JobKeeper application steps – summary of steps to apply to JobKeeper
- Template letter – change to hours or work and/or salary
- JobKeeper – letter to end stand down of employees and reengage with the JobKeeper payment
For more information on the topic, please contact us on 1300 887 458 and speak with one of our HR Consultants. If you are interested in learning more about our HR services, including HR Outsourcing, HR Consulting, HR Advisory Services, contact us at firstname.lastname@example.org.