UPDATE JOBKEEPER SUBSIDY PROGRAM
Some of you would have received a text message on your phones yesterday about 5:48 pm directly with the ATO with some updated information regarding the Jobkeeper subsidy.
So, we thought it would be good if we summarise and give you an updated view of how this program is likely to work.
The actual document is presented by the ATO on the following link: https://www.ato.gov.au/General/JobKeeper-Payment
The operation in broad details is as follows:
- The scheme requires an initial registration with the ATO. The application for the scheme will start on the 20th April 2020 via online application.
Cant’ give you a link until that date, however would be important to receive updates directly from the ATO. You can subscribe to the updates here: https://www.ato.gov.au/Job-keeper-payment/
As soon as the registrations open we will notify you. You will be able to enrol or we will be able to do it for you.
- You must check your eligibility as employer.Here is where the ATO has provided some additional information:
- Determine if you as employer are eligible – AKA the 30% drop in turnover test. / 15% drop in Turnover for ACNC registered Charities
There are three ways to determine the turnover test:
- Compare your turnover in March 2020 to March 2019
- Compare your projected turnover in April 2020 to April 2020
- Compare your Projected turnover April to June 2020 to April to June 2019
- An alternative test as approved by the ATO .
Few things to mention here:
- The turnover is based on your GST Turnover. (regardless of your reporting cycle, monthly or quarterly)
- You only need to meet the test ONCE, however you will have ongoing reporting requirements (not yet defined by the ATO)
- If you do not qualify as at 30 March 2020, you can apply the tests above for any month or quarter, and once met you will be eligible for the subsidy from that fortnight onwards.
- Determine eligibility of the employees.
- Permanent / part time employed by you at 01 March 2020
- Casual employees employed systematically for at least 12 months prior to 01 March 2020
- At least 16 years of age
- Australian permanent residents / Citizens
- Special visa holders
- Your employees must be Nominated for the jobkeeper program
- Notify your employee that you are nominating them
- Employee must agree to the nomination by signing the JOBKEEPER EMPLOYEE NOMINATION NOTICE (form can be downloaded from this link: https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/
- This form is only for your records.
- This form is to be returned to the employer before the end of April 2020.
- Payment must be made:
- Once you have determined the eligible employees and your eligibility as employer for the program, you NEED TO PAY the employees at least $1,500 per fortnight.
- Continue to pay them for as long as you continue claiming the subsidy or until the end of the program.
- Tax must be withheld as appropriate.
- The employer will be required to process a Claim for the Jobkeeper Payment at the end of the month :
- Process claim via ATO portal , likely performed by us, tax agents.
- Report No. of eligible employees
- report to the ATO on an ongoing basis the number of employees, terminated employees etc.
There seems to be some new rules being introduced by the government to not require super guarantee on the additional payments as a consequence of the Jobkeeper. However this is not finalised.
So, for the moment the position seems to be as follows:
– If your employee earns over $1500 per Fortnight, full super applies as normal.
– If your employee is receiving the payment but not performing any work, there is no requirement for super to be calculating on the amount to $1500.
– If your employee’s wages are less than the Jobkeeper, you only pay super on the actual portion related to the hours worked, any extra payment to reach $1500 is not subject to superannuation
– All Jobkeeper payments are assessable income for the EMPLOYER
– No GST is applicable in this income
– The final details of the program are not yet released in full, the ATO is still fine-tuning the final details, so we will continue providing updates as they get released.
If you have any questions regarding the above, please call us and we will be happy to discuss further.
The Team at Kardia Group