We know that you are all experiencing information overload at the moment, but we do feel it’s important to let you know that the time frame for the JobKeeper application is short, and if you are intending to apply for it you need to start taking action now. To get started, we have prepared a Questionnaire that will help to determine your eligibility, please click the link to complete this form, or for further information please continue reading.
VALUE TO YOU OF JOBKEEPER
If you are eligible to receive the JobKeeper payment for all your eligible employees for the entire 6 month period, this scheme could be of huge assistance to you and your business during these difficult times.
As an example, an eligible sole director business with three eligible employees, could stand to get up to $78,000 from the government during the next six months to see them through this challenging time.
JOBKEEPER PAYMENT OVERVIEW
JobKeeper is a Federal Government subsidy paid to eligible businesses effected by COVID-19 to cover the costs of their employee’s wages.
Affected employers will be able to claim a fortnightly subsidy payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.
This full amount of $1,500 must then be paid to all eligible employees, whether they are full time, part time or long-term casuals. Here is a brief summary of how the JobKeeper payments are made:
• They are paid by the ATO within 14 days of month end.
• The first payment will be starting in the first week of May 2020.
• The eligible payroll periods are every 14 days, commencing 30 March 2020.
• Monthly employer payroll reporting is required to trigger the payment by the ATO – using Single Touch Payroll (STP)
The employer will continue to receive the subsidy payments for eligible employees while they are eligible for the payments. While the program is expected to run for 6 months, payments will stop if the employee is no longer employed by the business.
Business Participation Entitlement
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. A limit applies of one $1,500 JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.
There are a number of moving parts with JobKeeper, below is a summary of the Key dates for lodgements with the ATO
- 20 April – enrolments open for JobKeeper with ATO
- 26 April – enrolment deadline for employers for April
- 30 April – check minimum $3,000 paid to all eligible employees
- 30 April – eligible employee forms are all on file
- 4 May – confirm eligible employees and complete application with ATO
- 7 May – report monthly GST turnover & confirm eligible employees
- 7 June – report monthly GST turnover & confirm eligible employees >
- 7 July – report monthly GST turnover & confirm eligible employees
- 7 August – report monthly GST turnover & confirm eligible employees
- 7 September – report monthly GST turnover & confirm eligible employees
- 7 October – report monthly GST turnover & confirm eligible employees
OBLIGATIONS + RISKS FOR YOU
If a wrong claim is made or if the ATO in the future decides that you were ineligible to receive the JobKeeper payment, the ATO will require you to repay them any JobKeeper payments that you have received plus penalties and interest. The key risks to you as the employer include:
- The employer certifies the facts provided to the ATO and the JobKeeper claim made.
- The employer receives significant JobKeeper payments over a 6 month period. For example, an employer with 10 employees would receive $195,000, and an employer with 20 employees would receive $390,000.
- If the employer makes a mistake and is found to be ineligible by the ATO (for example, its turnover is not down by 30%), then they may have to repay all amounts received back to the ATO.
- An employee ceases to be eligible if they cease employment during the life of this JobKeeper scheme. Also, the ATO requires you to keep all records in relation to your JobKeeper claim for a 5 year period.
As outlined earlier, if you would like assistance with this process we have prepared a Questionnaire that will help to determine your eligibility. It will also help us to determine those clients that require assistance with the application process in a timely and efficient manner.
If you want to discuss this please call our office on 08 6118 6111.