This round of JobKeeper is more complex than the first, and may be harder to prove for some businesses. If you have been unable to meet the ‘basic’ turnover test by comparing the September 2020 quarter to the same period in 2019, there may be options available under the Alternative Tests, including:

• Irregular Turnover Test
• New Business Test
• Disposals, Acquisitions or Restructures Test
• Substantial Increase In Turnover Test
• Drought and Natural Disaster Test
• Sole Trader or Small Partnership with Sickness, Injury or Leave Test

We’ve summarised the key details in this update.

Let us know if we can assist you in any way by contacting our office on 08 6118 6111 or hello@prescottsolutions.com.au

Click the link below to download your copy of the JobKeeper update

JobKeeper from 28 September 2020 – including alternative tests

The first tranche of JobKeeper ends on 27 September 2020. Those needing further support will need to reassess their eligibility and prove an actual decline in turnover.

To receive JobKeeper from 28 September 2020, eligible employers need to assess their decline in turnover with reference to actual GST turnover for the September 2020 quarter (for JobKeeper payments between 28 September to 3 January 2021), and again for the December 2020 quarter (for payments between 4 January 2021 to 28 March 2021).

From 28 September 2020, the JobKeeper payment rate will reduce and split into a higher and lower rate based on the number of hours the employee worked in a specific 28 day period prior to 1 March 2020 or 1 July 2020.

To access JobKeeper payments from 28 September 2020, there are three questions that need to be assessed:

1. Is my business eligible?
2. Am I and/or my employees eligible? and
3. What JobKeeper rate applies?

We’ve summarised the key details in this update.

Let us know if we can assist you in any way.

Click the link below to download your copy of the JobKeeper update

JobKeeper from 28 September 2020

Between April to May 2020, JobKeeper was taken up by 920,000 organisations and around 3.5 million individuals – 30% of pre-Coronavirus private sector employment.

There have been a number of Government announcements on JobKeeper that impact on business and employee eligibility.

Employees that previously failed the JobKeeper eligibility test as they were not employed on 1 March 2020, may now be eligible for payments from 3 August 2020 if they were employed on 1 July 2020 (see Eligible employees in the report).

From 28 September 2020, employers seeking to claim JobKeeper payments will need to reassess their eligibility and prove an actual decline in turnover. From this date, the JobKeeper payment rate will reduce and split into a higher and lower rate based on the number of hours the employee worked in the 4 weeks prior to 1 March 2020 or 1 July 2020.

To access JobKeeper payments from 28 September 2020, there are two questions that need to be assessed:

• Is my business eligible? And
• What JobKeeper rate applies to my eligible employees?

We’ve summarised the key details for employers on JobKeeper 2.0 in this update, but just remember that the proposed changes are not yet law and the details could still change.

If you have any questions, contact us today.

Click the link below to download your copy of the JobKeeper update

JobKeeper 2.0 V2 – The Future of JobKeeper 07.08.2020

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.

Click Here to Start your JobKeeper Questionnaire

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.

Important Dates

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:

1. The employer certifies the facts provided to the ATO and the JobKeeper claim made.
2. 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.
3. 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.
4. 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.

Click Here to Start your JobKeeper Questionnaire

If you want to discuss this please call our office on 08 6118 6111.