Hopefully you are aware of the changes to JobKeeper from the end of September but below is a summary just in case.
JobKeeper Payment updates
- Firstly you need to check to see if you still or will now qualify for JobKeeper 2.
- Do you have staff? Were they working on average more than 20 hrs per week in March and/or June?
- Businesses should start getting ready for the JobKeeper extension which commences on 28 September 2020.
- If you are already receiving payments for your eligible employees with JobKeeper 1, you do not need to re-enrol, however you do need to review the hours they work.
- From 28 September 2020, JobKeeper Payments must be paid to each eligible employee at the new payment rates, determined by the total hours worked during either March or June.
- Ensure you take action by 28 September and are fully aware of the new payment amounts & conditions, such as reporting employee hours and reducing JobKeeper payments.
CHANGES TO JOBKEEPER – ACTION REQUIRED NOW
For employers To be eligible for the first JobKeeper payment extension period of 28 September 2020 to 3 January 2021, businesses and not-for-profits will need to demonstrate that their GST turnover had significantly fallen in the September quarter 2020 relative to the comparable corresponding quarter in 2019.
To be eligible for the second JobKeeper payment extension period of 4 January 2021 to 28 March 2021, businesses and not-for-profits will need to demonstrate that their GST turnover had significantly fallen in the December 2020 quarter relative to the comparable corresponding quarter in 2019.
A significant fall in turnover is quantified as:
50% for businesses with an aggregated turnover of more than $1 billion
30% for businesses with an aggregated turnover of $1 billion or less; or
15% for not-for-profit organisations (excluding schools and universities).
The Commissioner of Taxation has the discretion to apply alternative tests to establish eligibility in circumstances where it is not appropriate to compare actual turnover in a quarter in 2020 with actual turnover in a quarter in 2019; for instance where turnover in the relevant 2019 quarter was depressed due to impact of a natural disaster or where the business made a significant acquisition or disposal rendering the 2019 comparison meaningless.
From 28 September 2020 to 3 January 2021, JobKeeper payment rates will be reduced and a lower payment rate introduced for those who work fewer hours, to:
$1,200 per fortnight for eligible employees who, in the 4 weeks of pay periods before 1 March 2020 or 1 July 2020, were working in the business for 80 hours or more and eligible business participants (such as sole traders) actively engaged in the business for 80 hours or more in the month of February 2020; and
$750 per fortnight for other eligible employees and business participants, such as part-time workers who worked in the business for less than 80 hours over those periods.
From 4 January 2021 to 28 March 2021, JobKeeper payment rates will change to:
$1,000 per fortnight for eligible employees who, in the 4 weeks of pay periods before 1 March 2020 or 1 July 2020, were working in the business for 80 hours or more and business participants actively engaged in the business for 80 hours or more in the month of February 2020; and $650 per fortnight for other eligible employees and business participants.
For employees If you are eligible for JobKeeper now, you will remain eligible during the extension period provided you remain employed by your employer. The revised key date for assessing employee eligibility is 1 July 2020, which means that some employees who missed out on JobKeeper previously (for instance, employees who commenced employment after 1 March but before 1 July) now qualify. Those self‐employed will continue to be eligible to receive JobKeeper payments where they meet the relevant turnover test and not a permanent employee of another employer.
What do I need to do? If you are a business owner, you now need to:
Work out your decline in turnover figure to assess whether your business qualifies for JobKeeper from 28 September
Work out which tier of JobKeeper payments your staff are entitled to, and notify the ATO
Tell you staff which tier of payments they will receive (within 7 days of notifying the ATO)
Pay your staff for JobKeeper fortnights ended 11 October and 25 October by 31 October (the ATO has extended the payment deadline for these two fortnights only to give you time to work out your decline in turnover and assess whether your business is still eligible)
South East Access can help you with all of the above, action is required now.
The team at South East Access provide accounting, personal and business tax, job keeper applications, financial management, payroll services and bookkeeping.
South East Access
Suite 25, 44 Deering St Ulladulla 2539
Phone: (02) 4454 4444
Office hours are 9.00am to 5:00 pm