Current as at 21 May 2020
We are now into the second claim month of Jobkeeper and there have been a few practical questions that we’ve been asked, and we’d like to share them with you. If your business is claiming Jobkeeper or you are thinking of claiming, then please read on.
|Question||Answer or comments|
|Will Jobkeeper payment be subjected to Payroll tax?||This varies depending on the State, the current status is:
·ACT – completely exempt
·NSW – no announcement at the time of writing this article
·NT – no announcement at the time of writing this article
·QLD – completely exempt
·SA – completely exempt
·TAS – completely exempt
·WA – completely exempt
·VIC – only the additional wage paid to the $1500 threshold each fortnight will be exempted
|Will Jobkeeper payment be included as wage for Workers compensation insurance (WCI) calculation?||The State Insurance Regulatory Authority has advised that not all Jobkeeper payments will be subjected to WCI. Employers are only required to pay WCI and declare the wages on the actual hours worked. This is applicable to all States and Territories.|
|I missed the April Payroll payment deadline – what should the employer do?
|If you have missed paying some staff the minimum $1500 in the month of April, it will not bar you from future month’s claims.
Also the Commissioner is given the power and discretion to allocate payment in a fortnight to another fortnight so it may be worthwhile to ask the Commissioner to grant you this discretion if you have a reasonable reason for missing the payment.
|Our business’s pay cycle does not match the Jobkeeper fortnightly period. How do we process the payroll and still be eligible?||Your payroll cycle is not relevant for the purpose of claiming Jobkeeper. What you must do is ensure that each eligible employee is paid a minimum of $1500 gross wage within the relevant Jobkeeper fortnight. See this link for the relevant Jobkeeper fortnight https://www.ato.gov.au/General/JobKeeper-Payment/In-detail/JobKeeper-key-dates/#JobKeeperfortnights
For employers with monthly pay cycles, the employees must be in receipt of the monthly equivalent of $1500 per fortnight (with the exception of the month of August where there are 3 fortnights so the monthly minimum equivalent for this month will be $4,500).
|Do I have to lodge all outstanding tax returns or BAS to get Jobkeeper?||The ATO is required to reimburse the employer no later than either of these dates:
1.14 days after the end of the relevant claim month;
2.14 days after the Commissioner is satisfied that the requirements of Jobkeeper have been satisfied.
Therefore, due to the second criteria we encourage all businesses to get all outstanding BAS or tax returns lodged as soon as possible to avoid any further delay on the Jobkeeper payment.
|I have claimed Jobkeeper as an “eligible business participant” –can I still work and get paid a wage by another employer or business?||Under the “Eligible business participant” nomination form, there is a requirement that you, as the nominated individual, cannot be employed by another employer on a full-time or part-time basis, however casual work may be acceptable here.|
|Does my business have to use Single Touch Payroll (STP) software to submit the payroll report to the ATO to be eligible to Jobkeeper?||STP is not compulsory for Jobkeeper claim but it will make the administration task of preparing and uploading the monthly Jobkeeper claim form much easier.
If you have a lot of staff to report and to claim each month then we highly recommend having an STP-enabled software as a must.
|What payroll records do you need to keep for Jobkeeper?||Below is a list of information or records we recommend that you should keep for your Jobkeeper claims:
1.Workpaper or calculation on the projected turnover for the initial enrolment – including GST method used.
2.Workpaper or calculation of actual turnover each month
3.All employees nomination forms
4.The eligible business participant nomination form
5.Employees list – eligible and non-eligible (reasons)
6.Regular Payroll calculation and reports (payslips and EFT/bank payment confirmation)
As always, if you have any questions, don’t hesitate to contact your client manager.
This newsletter has been produced by Stanley & Williamson as a service to its clients and associates. The information contained in the newsletter is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this newsletter, it is imperative you seek specific advice relating to your particular circumstances.
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