JobKeeper – Eligible Employee & Employer Declaration lodgement
We have seen a large number of clients enrolling for the $1500 a fortnight JobKeeper payment being offered by the Federal Government. If you have not enrolled or need to revisit your current situation please see our Covid-19 series of articles on our website. The government has extended the time to enrol to 30 May 2020.
As of 4 May 2020 the tax office will be accepting declarations of eligible for employees and business turnover reductions for employers to assess payment of the first two Jobkeeper instalments for the fortnights ended 12 April 2020 and 26 April 2020. Payments will be made to eligible employers nominated bank accounts from the first week in May 2020.
Employers will need to pay eligible employees a minimum of $1500 for each of these fortnights BEFORE 8 May 2020. One payment of $3000 can be made as long as it covers these two fortnights. Note the tax office has extended this date from that previously advised.
Recap of Jobkeeper steps required to this point
- Check if you and your nominated employees meet the eligibility requirements.
- Notify eligible employees that you (their employer) intend to participate in the JobKeeper scheme.
- Send eligible employees the JobKeeper Employee Nomination Notice to complete and return to you.
- Keep the Employee Nomination Form on file for five years.
- Pay the minimum $1,500 to each eligible employee per JobKeeper fortnight. The first fortnight starts on 30 March and ends on 12 April. Alternatively, employers can make one combined payment of $3,000 for the first two fortnights paid by end of 8 May 2020.
- Enrol for JobKeeper from 20 April using the Business Portal and authenticate with myGovID or have enrolment processed by a tax professional through the online tax agent portal.
- Subscribe to updates on the ATO website, so the ATO can advise when new information is available.
Steps in preparing eligible employee declaration and reduction in turnover (employer ) declaration
- Assess eligibility of employees jobkeeper-payment/employers/your-eligible-employees
- Assess business turnover reduction for employers jobkeeper-payment/employers/eligible-employers
- Report information to the tax office
For businesses set up for Single Touch Payroll (STP) enabled software
All of the relevant information will be captured within your STP enabled software. The major software providers have added functionality to assist in calculating eligibility for both employees and for the reduction in business turnover. Whilst this functionally is of great assistance in reporting Jobkeeper information there are several requirements to set up the reporting which you may require our assistance. Should this be the case the Economos team have been fully trained on these systems and are ready to assist where required on a do and charge basis. (We strongly suggest if you do not have STP compliant software that you ask for our advice on setting it up the right software package for you).
For businesses not set up for Single touch Payroll (STP) enabled software
To lodge declarations you will need to do this manually through your business portal using your myGovId or through our professional tax agent portal. Please contact your partner or manager if you require our assistance. (Fees will apply based on the complexity of your situation).