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Jobkeeper UPDATE – Businesses now able to claim Jobkeeper for new employees

 

The government has registered a new legislative instrument on the 14 August, whereby the eligibility date for assessing employees eligible to Jobkeeper is Now 1 July 2020.

 

As you would recall, the eligibility date for employees to be enrolled in jobkeeper was the 01 March 2020.

Now this date has been shifted to 01 july 2020 providing room for further claims for additional employees initially to September 2020.

 

And there is another change:

There is now an ability for an employee (and eligible business person ) to RE-NOMINATE for Jobkeeper with a new employer under certain circumstances.

 

What does this mean to you as employer:

  • Any employees that were employed as at 01 July 2020 under a permanent part time / Full time basis will be eligible for Jobkeeper (subject to the other eligibility conditions)
  • Any long term casual employees that meet the 12 month test as of 01 July 2020 now become eligible for jobkeeper (not employed by any other entity)
  • You may have employees turning 18 between March and July 2020. These employees would be eligible for jobkeeper now
  • Any employees whose immigration status changed between March and June 2020 may be eligible for Jobkeeper

 

Few clarifications that I am sure you have circling your head at the moment:

 

  • The change starts for jobkeeper fortnights commencing on 03 August 2020.

 

  • The ATO has confirmed that for fortnights commencing on the 3rd August and 17 August employers will have until the 31 August to meet the wage payments for employees who are now included in the Jobkeeper under the 1 July eligibility test (not for the prior employees though…..)

 

  • No, you do not need to satisfy the turnover test again, at least until the 28th September

 

  • Remember that ALL eligible employees must be in job keeper if they qualify and accept to be nominated.

This is known as the “one in, all in” principle

 

  • Since August is a 3 fortnight period for the purposes of jobkeeper, you must ensure that your employees receive the minimum $1500 per fortnight for the three fortnights, otherwise you will not be eligible to receive the payment

 

  • For any new employees entering the scheme you will need to Complete the nomination form as soon as possible (just like you did at the beginning of the scheme.

 

Feel free to contact us with any enquiries

 

The team at KARDIA GROUP.

 

JobKeer UPDATE operative provisions

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:
    1. 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.
    1. Permanent / part time employed by you at 01 March 2020
    2. Casual employees employed systematically for at least 12 months prior to 01 March 2020
    3. At least 16 years of age
    4. Australian permanent residents / Citizens
    5. Special visa holders

 

  • Your employees must be Nominated for the jobkeeper program
    1. Notify your employee that you are nominating them
    2. 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/
    3. This form is only for your records.
    4. This form is to be returned to the employer before the end of April 2020.

 

  • Payment must be made:
    1. 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.
    2. Continue to pay them for as long as you continue claiming the subsidy or until the end of the program.
    3. 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 :
    1. Process claim via ATO portal , likely performed by us, tax agents.
    2. Report No. of eligible employees
    3. report to the ATO on an ongoing basis the number of employees, terminated employees etc.

 

  • Superannuation:

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

 

Final Comments:

– 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 

T: 07-33924900

 

 

 

LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION.