JobKeeper Payment for Employers and Employees - JobKeeper Application Extension

The Australian governments $1500 per fortnight wage subsidy eligibility has been announced, but first, a little background:

The JobKeeper payment is intended to assist businesses affected by COVID-19 with the costs of employee wages.

The JobKeeper scheme ends on 27 September 2020.

Eligible employers will receive $1500 per employee, per fortnight, but only if they have paid wages of at least that amount in the fortnight.

Employers must register for the scheme to participate. Applications open on 20 April and close on 31 May – get started today call ISOsafe on 1300 789 132.

Employer Frequently Asked Questions

Does your organisation qualify?

Your business will qualify for the scheme if:

·       On 1 March 2020 you, operated in Australia; and

·       Your business satisfies the decline in turnover test

Additional information can be found on the ATO website.

As an employer you will be eligible for JobKeeper scheme if you can demonstrate ‘decline in turnover’:

·       The businesses projected turnover for a turnover test period is lower than the actual turnover recorded in the comparative period; and

·       The shortfall, expressed as a percentage, equals or exceeds the percentage fall thresholds.

Alternatively, if the business falls short of the edibility criteria for the ‘basic’ test, there is a second test. This test does not have any specific thresholds but does state that if there is not an appropriate relevant comparative period, the Commissioner, who administers the scheme, can determine an alternative decline in turnover test that is appropriate for the business and can be applied.

Will the test require recalculation for each month to remain eligible?

No. If you work out that you qualify in the initial reference period then you do not need to apply the test again. You will be eligible to participate for the duration of the JobKeeper package.

So if my business does qualify for JobKeeper how much will I receive?

If you can demonstrate that you are paying your employees more than $1500 per fortnight payment prior to JobKeeper going live you will be able to apply and receive $1500 per employee per fortnight.

So which employees are actually eligible? Who can I claim for?

An employee is deemed eligible if:

·       They are employed at any time in the fortnight period

·       They are over 16 years old

·       They are permanent or permanent part time employees or casuals for more than one year

·       They are an Australian resident or a resident for tax purposes and a Subclass 444 visa holder

There are some instances where team members are deemed not eligible. These include where parental leave pay is payable to an individual in the fortnight, or if any time in the fortnight the individual is paid partner pay or they are incapacitated for work and due to receive workers compensation payments and the amount payable overlaps with a JobKeeper fortnight.

Also any employee that you employed after 1 March 2020 and any employee that left your employment before 1 March 2020 would not be eligible.

Additional information can be found on the ATO website.

Is there anything I need to do with my employees before I enrol to receive JobKeeper?

Yes, employers need to notify each eligible employee that you intend to nominate them for JobKeeper and they must agree to be nominated. The employees agreement is received by them completing the employee nomination form which can be found on the ATO website. The filled form is to be kept on each employee file by the employer – there is no need to return this into the ATO.

How do I enrol my business to receive JobKeeper?

Use the ATO Business Portal to submit your application from 20 April 2020 by:

·       notifying the ATO your business intends to participate in the JobKeeper scheme; and

·       providing the employee details that are being claimed for.

Detailed step-by-step information can be found on the ATO website.

Do I continue paying my employees?

For employees that are currently being paid, they need to continue to be paid at least $1500 a fortnight for you to claim the $1500 from JobKeeper.

For employees that were terminated and have been reinstated, or employees that have been stood down and reinstated you need to pay them at least $1500 per fortnight for the duration of the scheme.

The amounts that you pay your staff members will be matched by receipts of funds from the Government.

How to remain eligible for JobKeeper?

The business must report, via a form on the ATO website, what the business’s actual revenue was for the reporting month and their expectation for the next month. This must be done within 7 calendar days after the end of the reporting month. The business is also required to update their eligible employee numbers at the end of each JobKeeper fortnight.

When will I start receiving JobKeeper payments?

The ATO has committed to paying the JobKeeper payments no later than 14 days after the relevant fortnight ends.