Accounting, Business, Martin R Bowen, Bowen, Mount Pleasant, Australia, JobKeeper, Cash Boost, Tax query, Taxation, stimulus package, payments for employers

Lodgement deadline May JobKeeper

Sun, 07 Jun 2020 23:00:00 GMT

JobKeeper declaration due 14 June

Businesses that have enrolled in the JobKeeper Scheme and identified their eligible employees are reminded that they will need to make a monthly declaration to the ATO to ensure they continue to receive JobKeeper payments.

The monthly declaration must be made by the 14th day of each month to claim JobKeeper payments for the previous month.

As part of the declaration, businesses will need to:

For example, to claim JobKeeper payments for the May 2020 JobKeeper fortnights, businesses must report their GST turnover for the month of May 2020 as well as their projected GST turnover for the month of June 2020 by 14 June 2020.

The monthly declaration can be lodged through the ATO business portal. Alternatively, tax agents can assist clients by lodging the monthly declaration on behalf of registered clients.

JobKeeper application from 4 May 2020

Sat, 02 May 2020 23:00:00 GMT

The following is the first screen we will see when starting an application for JobKeeper payments, referred to by the Taxation Office as "Identify eligible employees".

So, you will need to have the turnover for the current month (ie the month you are applying for eg April) and projected turnover for the next month (eg May). Generally, the Taxation Office allows you to cancel a form and come back to start again, if you don't have all the information you need when you look at it the first time.

JobKeeper extension

Sun, 26 Apr 2020 23:00:00 GMT

The Taxation Office updated the employers JobKeeper guide ( https://www.ato.gov.au/General/JobKeeper-Payment/Employers/ ) today, to extend the date for April top up payments in conjunction with the extended date to enrol for JobKeeper:

If you enrol by 31 May, you will still be able to claim for the fortnights in April and May provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight.

For the first two fortnights (30 March – 12 April, 13 April – 26 April), we will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by 8 May . If you do not pay your staff by this date, you will not be able to claim JobKeeper for the first two fortnights.

The Treasurer also announced that there will be a change to the eligibility for JobKeeper for 16 and 17 year old full time students. The Institute of Chartered Accountants advised the following:

The Government has also made announcements regarding:

Once again, the ATO is currently developing guidance for its website regarding these issues.

JobKeeper Key Dates

Mon, 20 Apr 2020 23:00:00 GMT

There have been rapid developments with both the information provided by the Taxation Office and the actions that you can take (or your registered tax agent can take on your behalf).

The Taxation Office has posted the following Key Dates today:

Importantly, you will have until the end of May if you run into any trouble enrolling for JobKeeper and need extra time.

The Taxation Office has also published JobKeeper guides for sole traders and employers last Friday, which have been updated today:

https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-guides/

Make sure that you have an employee nomination notice for each eligible employee.

https://www.ato.gov.au/Forms/JobKeeper-payment---employee-nomination-notice/

From 4 May, after you have enrolled for JobKeeper, you (or your tax agent) will be able to claim the JobKeeper payment for April for your eligible employees.

You will need to identify each employee and the amount they have been paid during April. If you use Single Touch Payroll (STP), the information will be pre-filled, and just need confirmation. There is also a manual process, where you will identify your employees by entering their tax file number and date of birth. You can add potentially eligible employees manually, even if you have other employees that are pre-filled from STP.

Taxation Office updates

Mon, 13 Apr 2020 23:00:00 GMT

Taxation Office updates 14 April 2020

The Taxation Office has released updated information for Employers and Employees for the JobKeeper payment.

https://www.ato.gov.au/General/JobKeeper-Payment/Employers/

https://www.ato.gov.au/general/jobkeeper-payment/employees/

Important points for employers and businesses (extracted from Taxation Office website):

WHAT IS THE DEFINITION OF TURNOVER?

Turnover (for purpose of determining how much turnover has declined by) will be defined according to the current calculation for GST purposes and is reported on Business Activity Statements at G1. It includes all taxable supplies and all GST free supplies but not input taxed supplies. (Input taxed supplies are things like residential rental income .)

How to calculate a fall in turnover for the first fortnight starting 30 March 2020

To work out your fall in turnover, you can compare either:

How you choose to project your fall in turnover is not dependent on whether you report a quarterly or monthly BAS , though you can do that if it is easier. The turnover calculation is based on GST turnover, but there are some modifications, including disregarding GST grouping (where two or more associated business entities operate as a single GST group). We (the Taxation Office) will provide more information soon about applying the turnover test.

If you work out that you qualify for the JobKeeper payments for the first fortnight because your turnover has declined by the relevant amount for a month or quarter, you remain eligible and do not need to keep testing turnover in following months. However, you will have ongoing monthly reporting requirements. More information will be provided soon.

The Commissioner of Taxation also has the discretion to set out alternative tests that can establish your eligibility when turnover periods are not appropriately comparable (for example, if your business has been in operation less than a year). We (the Taxation Office) will provide more information soon about alternative tests.

For the first two fortnights (30 March – 12 April and 13 April – 26 April), we (the Taxation Office) will accept the minimum $1,500 payment before tax has been paid for each fortnight even if it has been paid late, provided it is paid by the end of April. This means that they can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April.

Sole traders

Sole traders can be eligible for the JobKeeper payment if their business has experienced a downturn according to the eligibility criteria. At the time of nomination the individual must not also be a permanent employee of an employer. We (the Taxation Office) will provide more information soon about the eligibility of sole traders for the JobKeeper payment.

Business owners actively engaged in their business

Other businesses in the form of a company, trust or partnership can also qualify for JobKeeper payments where a business owner (a shareholder, adult beneficiary or partner) is actively engaged in the business, or a director is actively engaged in the business. This is limited to one entitlement for each entity even if there are multiple business owners or participants. At the time of nomination as an eligible business participant the individual must not also be a permanent employee of an employer. We (the Taxation Office) will provide more information soon about the eligibility of these businesses for the JobKeeper payment.

JobKeeper - Key Points for April 2020

Sun, 12 Apr 2020 23:00:00 GMT

JOBKEEPER – KEY POINTS FOR APRIL 2020

The JobKeeper payment is a payment of $1,500 per fortnight for each eligible employee and business owner, paid to businesses that are eligible, or become eligible, between 30 March and 27 September 2020.

When is an employer entitled to a JobKeeper payment?

In general terms, an employer is entitled to a JobKeeper payment for a fortnight if:

· the fortnight is a JobKeeper fortnight (30 March to 27 September 2020);

· the employer qualifies for the scheme on or before the end of the fortnight;

· the payment is for a person who is an eligible employee of the employer;

· the employer has satisfied the wage condition by making payments to the eligible employee equal to or greater than the amount of JobKeeper payment (less PAYG withholding and salary packaging) that the employer will receive for the employee for the fortnight; and

· the employer has notified the Commissioner of a range of matters, including notification of its election to participate in the scheme.

PROCESS FOR SMALL BUSINESS (Annual turnover <$1 billion)

1. Register with the Taxation Office

If relevant, you need to register at: https://www.ato.gov.au/general/gen/JobKeeper-payment/

The Taxation Office will then forward information as it becomes available – refer website above. As at 13 April 2020, no further information is available from the Taxation Office.

2. Self-assess turnover has decreased, or is likely to decrease, by 30%

The decline in turnover test needs to be satisfied before an entity becomes eligible for the JobKeeper payment. This can occur in any month up to September 2020. Once this occurs there is no requirement to retest in later months, even if revenue fluctuates.

The basic decline in turnover test compares the amount that would be included at G1 on the BAS for a month or quarter in the period the JobKeeper scheme applies with the corresponding period in 2019. [It does not include investment income such as residential rent or dividends.]

For example, you can compare the whole of the month of March 2020 with March 2019, or you could compare the projected turnover for April 2020 with April 2019, May 2020 with May 2019, etc. Alternatively, the projected turnover for the June 2020 quarter could be compared to the turnover for the June 2019 quarter, etc.

Where the Commissioner of Taxation is satisfied that there is not an appropriate relevant comparison period in 2019, the Commissioner may, by legislative instrument, determine that an alternative decline in turnover test applies to a class of entities. No such determination has been made at 13 April 2020, although it has been suggested in a Treasury fact sheet that the average turnover of the preceding months, or an earlier year with normal turnover, could be used. This might be the case for a new business, a business that made a major business acquisition in 2020, or a business affected by natural disaster (eg drought) in 2019. In these cases, the basic test may not accurately reflect the downturn in activity that the business has suffered.

3. Notify employees that you have elected to participate in the scheme.

Another key element of the scheme is that qualifying employers that decide to participate in the JobKeeper scheme must, as a condition of entitlement, notify all employees in writing that they have elected to participate in the scheme and that their eligible employees will all be covered by the scheme.

Once an employer decides to participate in the JobKeeper scheme and their eligible employees have agreed to be nominated by the employer, the employer must ensure that all of these eligible employees are covered by their participation in the scheme. This includes all eligible employees who are undertaking work for the employer or have been stood down. The employer cannot select which eligible employees will participate in the scheme. This 'one in, all in' rule is a key feature of the scheme.

4. Employees notify employer that they are able to be included

An employee must provide a notice in the approved form, when issued by the Taxation Office, to their employer agreeing to be nominated by the employer for the purposes of the JobKeeper scheme. The employee must also specify in the notice that they have not agreed to be nominated by any other employer or business. The purpose of this nomination is to assist employers to determine whether they may be entitled to JobKeeper payment in respect of the employee for a particular fortnight.

A person who is employed by one or more qualifying employers will need to choose one employer that will receive the JobKeeper payments for their employment. A casual employee is only eligible for the JobKeeper payment if they are not a permanent employee of another employer (see definition page 4).

Once an employee has nominated an employer, and the employer has received JobKeeper payments in respect of the employee and has paid the employee, they cannot nominate a different employer.

5. Pay all eligible employees

If eligible for JobKeeper payments for April 2020, pay all eligible employees $1,500 per fortnight (or $3,250 per month) by 26 April 2020. If the payment for the first fortnight (30 March to 12 April 2020) was less than $1,500, this should be able to be adjusted in the second fortnight (13 April to 26 April 2020).

Generally the payment should be made within the fortnight, but the Commissioner has the discretion to treat the employee as having received at least $1,500 in the earlier fortnight. Therefore, it appears that if a minimum payment of $1,500 was not made in the fortnight ending 12 April 2020, a catch-up payment can be made by 26 April 2020.

Tax needs to be deducted from the payment to employees, and salary sacrifice arrangements are included in the minimum $1,500 per fortnight. If a person is usually paid more than $1,500 per fortnight, then superannuation contributions must still be made. If a person is usually paid less than $1,500 per fortnight, then superannuation contributions are only made for the usual pay (ie superannuation contributions are not made for the top-up payment).

6. Apply online with the Taxation Office

An employer must notify the Commissioner in the approved form, when issued by the Taxation Office, of the employer's election to participate in the scheme before the employer can be entitled to a payment for a fortnight.

This election generally needs to be provided to the Commissioner before the end of a JobKeeper fortnight for the employer to be entitled to a payment for that fortnight, except in April, where the employer has until the end of the second JobKeeper fortnight, that is, 26 April 2020, to provide the Commissioner with its election to participate.

There are transitional rules that allow the Commissioner to make payments to businesses for the month of April 2020, without being satisfied that the entity is entitled to the payment. This also enables the Commissioner to seek repayment of amounts paid where a business was not eligible, or pay more if the business was entitled to a greater amount.

7. Notify employees

Once an employer has provided details of its eligible employees to the Commissioner, the employer must also notify each eligible employee within 7 days.

Business owners

· Actively engaged in operating the business: Business can be entitled to a JobKeeper payment for one business participant who is actively engaged in operating the business. This applies to a sole trader, a partner in a partnership, an adult trust beneficiary, or a director or shareholder in a company. The person must be an Australian resident and aged 16 years or over.

· Not a permanent employee with any employer: The nomination requirements are that the individual has agreed to be nominated by the entity as an eligible business participant and has not agreed to be nominated by another entity. At the time of nomination as an eligible business participant the individual must not also be a permanent employee of an employer.

EMPLOYER OBLIGATIONS

To receive the JobKeeper Payment, employers must:

· Apply at ato.gov.au and assess that they have or will likely experience the required turnover decline.

· Provide information to the ATO on all eligible employees. This includes information on the eligible employees engaged as at 1 March 2020 and those currently employed by the business or not-for-profit (including those stood down or re-hired). For most businesses or not-for-profits, the ATO will use Single Touch Payroll data to pre-populate the employee details for the business or not-for-profit.

· Ensure that each eligible employee receives at least $1,500 per fortnight (before tax). Employees who receive $1,500 per fortnight or more from their employer will continue to receive their regular income according to their prevailing workplace arrangements. For employees that have been receiving less than this amount, the employer will now need to pay them, at a minimum, $1,500 per fortnight before tax.

· Notify all eligible employees that they are receiving the JobKeeper Payment.

· Continue to provide information to the ATO on a monthly basis (in a manner to be determined by the Taxation Office), including the number of eligible employees employed by the business. Ongoing turnover figures do not impact eligibility, but are intended to ensure that there is good information on which to assess the economic impact of the Coronavirus on a monthly basis across Australia.

KEY TERMS

Eligible employers

Employers (including not-for-profits) will be eligible for the subsidy if:

· their business has an aggregated turnover of less than $1 billion (for income tax purposes1) and they estimate their GST turnover has fallen or will likely fall by 30 per cent or more; or

· their business has an aggregated turnover of $1 billion or more (for income tax purposes) and they estimate their GST turnover has fallen or will likely fall by 50 per cent or more; and

· their business is not subject to the Major Bank Levy.

Self-employed individuals (businesses without employees) will be eligible to receive the JobKeeper Payment where they meet the relevant turnover test outlined above, and are not also a permanent employee of an employer.

Eligible employees

Eligible employees are employees who:

· are currently employed by the eligible employer (including those stood down or re-hired);

· were employed by the employer at 1 March 2020;

· are full-time, part-time, or long-term casuals (a casual employed on a regular and systemic basis for longer than 12 months as at 1 March 2020);

· are a permanent employee of the employer, or if a long-term casual employee, not a permanent employee of any other employer;

· are at least 16 years of age at 1 March 2020;

· are an Australian citizen, the holder of a permanent visa, or a Special Category (Subclass 444) Visa Holder at 1 March 2020;

· were a resident for Australian tax purposes on 1 March 2020; and

· are not in receipt of a JobKeeper Payment from another employer.

Employees receiving Parental Leave Pay from Services Australia are not eligible for the JobKeeper Payment. However, employees on parental leave from their employer will be eligible. Employees receiving workers compensation will be eligible for the JobKeeper Payment if they are working, for example on reduced hours, but will generally not be eligible if they are not working.

If your employees receive the JobKeeper Payment, this may affect their eligibility for income support payments and they must report their change in circumstances to Services Australia online at my.gov.au or by telephone, to avoid incurring a debt that will be required to be repaid.

Links

JobKeeper FAQs has numerous examples for employers and employees:

https://treasury.gov.au/sites/default/files/2020-04/JobKeeper_frequently_asked_questions_2.pdf

Employer Fact Sheet

https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_Info_for_Employers_2.pdf