As part of a stimulus package to deal with COVID-19, the ATO has introduced the JobKeeper payment scheme. If you are a business owner, then the team here at Pherrus can help you through this crisis and provide all the crucial accounting advice to help you survive and thrive.
Already signed up for the JobKeeper scheme? Don’t miss the 30 April deadline!
Remember, you need to pay any eligible employee at least $1,500 before tax for each JobKeeper fortnight. JobKeeper fortnights started from 30 March 2020.
IMPORTANT NOTE: A gross payment of $3,000 needs to be paid to each eligible employee by 8 May 2020, otherwise, you will be unable to claim back for the employee. See Step 3 below.
What is the JobKeeper Payment?
Under the JobKeeper Payment, businesses impacted by COVID-19 will be able to access a subsidy to continue paying their employees. The Government will provide a fortnightly payment of $1,500 per eligible employee until 27 September 2020. As a business owner, there are three steps you need to follow:
Step 1: Enrol for the JobKeeper Payment
This is simple and only needs to be done once. First, you will need to log in to your Business Portal using your unique myGov ID. Then choose ‘Manage employees’ and click on the link for the JobKeeper payment. Fill in all the required fields with accurate and truthful data.
Step 2: Identify and maintain your eligible employees
You can either try to do this yourself or use a professional accounting firm such as Pherrus Financial Services. In addition to identifying eligible employees, their details will need to be kept up to date each month.
Step 3: Make a monthly declaration
This step needs to be repeated on a monthly basis and completed by the 30th of every month. Make sure to reconfirm the eligibility of your business and your reported eligible employees. You must also provide the details of your current and anticipated GST turnover to show how your business is performing under the JobKeeper Payment scheme.
As part of step 3, it is essential that you pay each of your eligible employees at least $1,500 per fortnight. You should also update your eligible employees in the case that one of them leaves or there is a change in circumstances. As part of this step, you need to re-confirm your contact and bank details for payment.
Want to apply for JobKeeper?
First, make sure that you have the required financial data to hand, and ensure that eligible employees have completed the appropriate ‘nomination notice’. There are other additional considerations and criteria which need to be taken into account.
You can find out more here. Alternatively, if you need professional help call Pherrus today on (02) 9099 9109.