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How do I set up a sole trader for the jobkeeper payment in Quickbooks (not an employee). Person fits the ATO criteria here: Eligible business participant: a sole trader

 
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Best answer May 15, 2020

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How do I set up a sole trader for the jobkeeper payment in Quickbooks (not an employee). Person fits the ATO criteria here: Eligible business participant: a sole trader

Hi roslyn1,

 

In order for them to be included in the STP lodgement, they would need to be set up as an employee in payroll. If you're not sure if this is the correct path to take, you will need to double check with the ATO as they set the requirements for identifying and maintaining eligibility and reporting. If they advise this sole trader can be reported as an employee with the others, you can add them as an employee in QuickBooks Payroll and manage their JobKeeper payments the same as the other employees. 

 

-Kass

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Content Creator

How do I set up a sole trader for the jobkeeper payment in Quickbooks (not an employee). Person fits the ATO criteria here: Eligible business participant: a sole trader

Hi roslyn1,

 

As per the ATO, sole traders are required to enrol and report through either ATO online services or the Business Portal rather than through QuickBooks/STP software. You can refer to this JobKeeper guide for sole traders which walks you through the steps of enrolling, identifying as an eligible business participant and making a business monthly declaration.

 

-Kass

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Level 1

How do I set up a sole trader for the jobkeeper payment in Quickbooks (not an employee). Person fits the ATO criteria here: Eligible business participant: a sole trader

Thanks. This sole trader is closely connected to the business and there is able to claim jobkeeper through our business not directly through the ATO.  So we are adding this person to the list alongside our employees.  Do I need to set them up as an employee in quickbooks in order to process this?

Highlighted
Content Creator

How do I set up a sole trader for the jobkeeper payment in Quickbooks (not an employee). Person fits the ATO criteria here: Eligible business participant: a sole trader

Hi roslyn1,

 

In order for them to be included in the STP lodgement, they would need to be set up as an employee in payroll. If you're not sure if this is the correct path to take, you will need to double check with the ATO as they set the requirements for identifying and maintaining eligibility and reporting. If they advise this sole trader can be reported as an employee with the others, you can add them as an employee in QuickBooks Payroll and manage their JobKeeper payments the same as the other employees. 

 

-Kass

View solution in original post

Highlighted
Level 1

How do I set up a sole trader for the jobkeeper payment in Quickbooks (not an employee). Person fits the ATO criteria here: Eligible business participant: a sole trader

Director or Self employed ARE NOT EMPLOYEES!

You do not need to enrol via Quickbooks.

Business participants enrol via ATO portal.

 

The question is how to process ATO payment to business participant.

ATO transfers jobseeker amount to the business and this transaction is recorded into Income.

 

JobKeeper payment in respect of business participants, is not required to be passed on by the entity to the individual engaged in the business.  Therefore, wages are not required to be paid nor PAYG Withholding withheld, the JobKeeper payment is simply taxable income to the business entity receiving it.