*Updated 29 April 2020
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If your business has been affected by COVID-19, you should act now to access the JobKeeper payment.
Here are the steps that you need to consider to enrol for the JobKeeper payment:
Step 1 – Determine whether your business qualifies.
To qualify you must have:
- Been carrying on a business at 1 March 2020;
- Employed at least 1 eligible employee at 1 March 2020;
- Continue to employ eligible employees (including those who you have stood down); and
- Had suffered a reduction in turnover of 30% or more.
Reduction In Turnover
To access the JobKeeper payment, you either need to:
- Have had a reduction of 30% or more for the month of March 2020 compared to March 2019;
- Predict that your turnover will reduce by 30% or more for the month of April 2020 compared to April 2019; or
- Predict that your turnover will reduce by 30% or more for the June 2020 quarter compared to the June 2019 quarter.
If you do not qualify yet, still continue to monitor your turnover. If your turnover reduces by 30% in a future month/quarter, you will become eligible and can start to receive JobKeeper payments.
Turnover will be based on when sales/services are invoiced, not when you receive payments from customers. However, if you prepare your BAS on a cash basis, the ATO will allow you to calculate the reduction in turnover test on a cash basis.
Step 2 – Determine which employees are eligible.
To be eligible, at 1 March 2020 an employee must be either:
- Full-time or permanent part-time; or
- A casual who has been employed by you for at least 12 months on a regular and systematic basis.
Employees are not eligible while they are in receipt of:
- Government parental leave;
- Dad and partner pay; or
- Worker’s compensation.
For eligible employees, you must provide them with a nomination notice. Once completed, retain the notice/s for your records.
Step 3 – Enrol for JobKeeper Payment
To be eligible for wages paid from 30 March 2020, you must enrol by the 31st of May 2020.
The ATO has provided JobKeeper guides. These guides provide instructions on:
- How to register for the Business Portal (if not already registered);
- How to access the Business Portal;
- Steps to locate and complete the JobKeeper enrolment form; and
- Ongoing requirements for JobKeeper payments from 4 May 2020, depending on whether you are reporting through Single Touch Payroll, not reporting through Single Touch Payroll, or operating as a sole trader.
Eligible Business Participant
The JobKeeper payment also allows your business to receive the $1,500/fortnight payment for an eligible business participant for your entity, if they meet all of the following conditions:
- They are an individual not employed by your entity;
- They are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming);
- They are one of the following (at 1 March 2020 and for the fortnight you are claiming):
- a sole trader;
- a partner in the partnership;
- an adult beneficiary of the trust;
- a shareholder or director in the company.
Please note that an eligible business participant cannot be an employee (other than a casual employee) of another entity. If the participant is a long term casual employee, he/she can choose to claim from their employer or under their business, but not both.
Step 4 – Ensure eligible employees have been paid.
Before the ATO will pay you $1,500 per employee per fortnight you are eligible, you need to have paid all eligible employees at least $1,500 gross per fortnight. If you have not made the required payments for the period of 30 March 2020 to 26 April 2020, you can pay the difference by the 8th of May.
We Are Here To Help!
We can assist in determining whether your business or your employees qualify. We can also enrol on behalf of you. If you require our assistance, please contact us.
If the ATO deems you ineligible, you will be required to repay JobKeeper payments, and will be unable to recover these payments made to your employees.
For further information regarding Jobkeeper enrolment please contact us.