Key points

  • The ATO wants businesses to continue to pay at least $1,500 to each each eligible employee per JobKeeper fortnight (the first JobKeeper fortnight is the period from 30 March to 12 April).
  • You can register details of employees to the ATO from 20 April through the business portal.
  • You must register details with the ATO by the end of April to claim JobKeeper payments for April.
  • You must send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April. The link to this notice is https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/
  • The registration form for partners, trust beneficiaries, company directors and sole traders is yet to be released by the ATO.
  • I can register your business and provide employee details to the ATO. I will be employing an administrative assistant to do this and will charge $90 plus GST to cover the cost of this. Please let me know if you want me to register for you.

 

The full process per the ATO website is below (this assumes you have already registered for JobKeeper).

  • Step 1 – Continue to pay at least $1,500 to each eligible employee per JobKeeper fortnight (the first JobKeeper fortnight is the period from 30 March to 12 April).
  • Step 2 – Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf and check they aren’t claiming JobKeeper payment through another employer or have nominated through another business.
  • Step 3 – Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April. Keep it on file and provide a copy to your registered tax agent if you are using one.
  • Step 4 – From 20 April 2020, you can enrol with us for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by the end of April to claim JobKeeper payments for April.
  • Step 5 – In the online form, provide your bank details and indicate if you are claiming an entitlement based on business participation, for example if you are a sole trader.
  • Step 6 – Specify the estimated number of employees who will be eligible for the first JobKeeper fortnight (30 March – 12 April) and the second JobKeeper fortnight (13 April – 26 April).

What do you need to do for your employees

  • You need to identify which employees you intend to claim the JobKeeper payment for and tell them you intend to claim the JobKeeper payment for them.
  • You need to provide these employees with the JobKeeper employee nomination noticeand ask them to return it to you by the end of April if you want to claim JobKeeper payment for April. The link to this notice is https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/
  • If an employee is currently receiving an income support payment, they must notify Services AustraliaExternal Linkof their new income to avoid incurring a debt that they will have to repay.

 

What to do if your employee has multiple employers

  • If your employees have multiple employers, they can usually choose which employer they want to nominate through. However, if your employees are long-term casuals and have other permanent employment, they cannot nominate you. They cannot receive the JobKeeper payment from more than one employer.

 

Partners, Trust Beneficiaries, Company Directors and Sole Traders

You should not use the JobKeeper employee nomination notice if you are intending to claim JobKeeper payments for an eligible business participant for example a partner in a partnership, an adult beneficiary of a trust or a shareholder or director of a company or a sole trader. A different nomination process will be required.

The ATO is yet to publish this nomination process on the ATO website. I will let you know when this happens.

 

Monthly Reporting to the ATO

  • Each month, you will need to reconfirm that your reported eligible employees have not changed through ATO online services, the Business Portal or via your registered tax agent. This will ensure you will continue to receive the JobKeeper payments from us. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.
  • If your eligible employees change or leave your employment, you will need to notify us through your monthly JobKeeper Declaration report.

Paying Employers in April

For the first two fortnights (30 March – 12 April and 13 April – 26 April), we will accept the minimum $1,500 payment before tax has been paid for each fortnight even if it has been paid late, provided it is paid by the end of April. This means that employers can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April.

If you pay staff each month

If your ordinary arrangement is to pay employees less frequently than fortnightly, the payment can be allocated between fortnights in a reasonable manner. For example, if an employer’s ordinary arrangement is to pay an employee every four weeks, it will be reasonable if the employee is paid at least $3,000 for every four-week period.

Tax treatment of JobKeeper payments

All JobKeeper payments are assessable income of the business that is eligible to receive the payments. The normal rules for deductibility apply in respect of the amounts a business pays to its employees where those amounts are subsidised by the JobKeeper payment.

GST and JobKeeper

The JobKeeper payment is not subject to GST.

Superannuation and JobKeeper

New rules are being introduced by the government with the intention to not require super guarantee to be paid on additional payments that are made to employees as a result of JobKeeper payments. The ATO will provide information once legislation is in place.

 

 

Liability limited by a Scheme Approved Under Professional Standards Legislation