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Set up and manage JobKeeper payments

On April 8th the JobKeeper Payment program passed into legislation.

The JobKeeper Payment of $1,500 gross earnings per fortnight is paid to the employer as a supplement to assist with the payment of salary and wages and will be paid in arrears commencing from May 2020 for a maximum of six months, with payments backdated from 30 March 2020.

For more information, we recommend that you visit the JobKeeper Payment webpage provided by the Australian Government.

How do I know if my business is eligible for JobKeeper?

The Australian Government has outlined the eligibility criteria here. If you are still unsure we recommend you reach out to your Accountant or Payroll officer.

Note: From May 4th onwards you will need to submit a monthly declaration to the ATO to reconfirm eligibility, for more information visit the ATO website

Note: You can calculate your turnover by running a Profit and Loss Comparison report.

How do I register for JobKeeper payments?

If you meet the above criteria you need to register for JobKeeper following the steps the ATO has provided.

How do I know if my employee is eligible?

The Australian Government has outlined the eligibility criteria here. If you are still unsure we recommend you reach out to your Accountant or Payroll officer.

A report has also been provided to assist you with this:

  1. Select Employees in the left hand menu
  2. Select the Reports tab
  3. Select JobKeeper Eligibility Report (located under Employee)
  4. Choose the appropriate filters and then select Run Report

Navigate to the Eligibility Status column to see whether the employee/s are eligible for the JobKeeper payment.

Next you'll need to nominate the employee/s, you will need to notify employees and have them complete an employee nomination notice.

This information will need to be provided to the ATO on a monthly basis, including the number of eligible employees employed by the business. The ATO has provided guidance on this.

Note: You will need to complete the employee nomination notices and pay your employees before April 30th to claim JobKeeper payments for April.

How to report JobKeeper payments through STP

For employees who are earning $1500 or more per fortnight in gross earnings, nothing needs to change, you can continue to use the same the pay category and report STP as normal. You will only need to add the relevant start or finish JobKeeper pay category.  The process of adding the start or finish fortnight pay category is explained further below in the How to complete a pay run for JobKeeper section.

For those earning less than $1500 per fortnight in gross earnings, you will need to create a "top-up" amount to bring their gross earnings up to $1500 per fortnight.  This top-up amount needs to be recorded as an allowance.

Note: You cannot forward date the start fortnight entries in the pay run, but you can add it to a later pay run if you've already started paying your employees JobKeeper (see the section at the bottom of this article for further explanation).

How to complete a pay run for employees under JobKeeper

There are different scenarios to consider in a pay run depending on the eligible employee’s gross fortnightly wages. If the employee is still completing their duties and working, then you still need to pay the employee for the work they are doing and the employee is to receive their entitlements.

If the employee’s earnings in the pay run you are processing will be more than $1,500 per fortnight, then continue to pay the employee all earnings and include all entitlements to leave accrual and superannuation as you usually would. The JobKeeper Payment will be a supplement for the employer. If this is the first time pay run you are claiming the JobKeeper subsidy for this employee you will need to add a pay category to indicate this.  

  1. While in the pay run select the employee you wish to add JobKeeper start to
  2. Click the Actions button and select Add JobKeeper Payment 
  3. Under JobKeeper options  select JobKeeper start
  4. Select the relevant JobKeeper Period 
  5. Select Finished 

Notes:

  • The reason you add $0.01 to the Rate field as STP does not report $0 earnings to the ATO.
  • Remember that you only need to notify the ATO of the start fortnight once for each eligible employee.

If the employee’s earnings are less than $1,500 per fortnight, then continue to pay the employee all earning and include all entitlements to leave accrual and superannuation as you usually would, plus an additional earnings line for the “top-up” amount totalling the difference between the JobKeeper Payment and the employee’s gross earnings. Use the JobKeeper Payment Pay Category for this. To add the JobKeeper pay category:

  1. While in the pay run select the employee you wish to add the payment to
  2. Click the Actions button and select Add JobKeeper Payment 
  3. Under JobKeeper options select JobKeeper top-up
  4. Enter in the relevant Top up amount 

If this is the first time pay run you are claiming the JobKeeper subsidy for this employee you will need to add an additional earnings line for the JobKeeper Start

  1. Select Add another option 
  2. Under JobKeeper options  select JobKeeper start
  3. Select the relevant JobKeeper Period 
  4. Select Finished 

Notes:

  • The reason you add $0.01 to the Rate field as the STP does not report $0 earnings to the ATO.
  • Remember that you only need to notify the ATO of the start fortnight once for each eligible employee
  • The JobKeeper payment will not accrual leave or superannuation.
  • The JobKeeper payment amount is $1500 based on a fortnightly pay run if you are paying your employee on a weekly or monthly basis you will need to adjust accordingly (see below).

If an employee has been stood down and is eligible for the JobKeeper Payment, then they will be entitled to the full JobKeeper Payment amount of $1,500 per fortnight. Learn how to manage a stand down.

  1. While in the pay run select the employee you wish to add the payment to
  2. Click the Actions button and select Add JobKeeper Payment 
  3. Under JobKeeper options select JobKeeper top-up
  4. Enter in the relevant Top-up amount 

If this is the first time pay run you are claiming the JobKeeper subsidy for this employee you will need to add an additional earnings line for the JobKeeper Start

  1. Select Add another option 
  2. Under JobKeeper options  select JobKeeper start
  3. Select the relevant JobKeeper Period 
  4. Select Finished 

Notes:

  • The reason you add $0.01 to the Rate field as the STP does not report $0 earnings to the ATO.
  • Remember that you only need to notify the ATO of the start fortnight once for each eligible employee
  • The JobKeeper payment will not accrual leave or superannuation.
  • The JobKeeper payment amount is $1500 based on a fortnightly pay run if you are paying your employee on a weekly or monthly basis you will need to adjust accordingly.

How to work out your JobKeeper Start Number

The JobKeeper start number is determined based on the 13 fortnightly period outline below by the ATO, your start date is based off the first time you paid your employees, for example, if you first paid your employees on the 3rd of April your JobKeeper period would be JobKeeper-Start-FN01 (regardless of whether you are paying your employees Weekly, Fortnightly or Monthly)

FN Date Range Allowance Description
01 30/03/2020-12/04/2020 JOBKEEPER-START-FN01
02 13/04/2020-26/04/2020 JOBKEEPER-START-FN02
03 27/04/2020-10/05/2020 JOBKEEPER-START-FN03
04 11/05/2020-24/05/2020 JOBKEEPER-START-FN04
05 25/05/2020-07/06/2020 JOBKEEPER-START-FN05
06 08/06/2020-21/06/2020 JOBKEEPER-START-FN06
07 22/06/2020-05/07/2020 JOBKEEPER-START-FN07
08 06/07/2020-19/07/2020 JOBKEEPER-START-FN08
09 20/07/2020-02/08/2020 JOBKEEPER-START-FN09
10 03/08/2020-16/08/2020 JOBKEEPER-START-FN10
11 17/08/2020-30/08/2020 JOBKEEPER-START-FN11
12 31/08/2020-13/09/2020 JOBKEEPER-START-FN12
13 14/09/2020-27/09/2020 JOBKEEPER-START-FN13

How to notify the ATO if you stop JobKeeper payments for an employee

If there is an employee who is no longer eligible for the JobKeeper payment the employer must also notify the ATO via STP. To do this:

  1. While in the pay run select the employee you wish to add the payment to
  2. Click the Actions button and select Add JobKeeper Payment 
  3. Under JobKeeper options select JobKeeper finish
  4. Select the relevant JobKeeper Period 
  5. Select Finished 

Notes: 

  • The reason you add $0.01 to the Rate field as the STP does not report $0 earnings to the ATO.
  • Be sure to add the JOBKEEPER-TOPUP category if applicable for this employee.
  • The JobKeeper payment will not accrual leave or superannuation.
  • The JobKeeper payment amount is $1500 based on a fortnightly pay run if you are paying your employee on a weekly or monthly basis you will need to adjust accordingly.

For weekly pay runs:

  • The JobKeeper payments would calculate to $750 per week.
  • Use the same logic when determining the JOBKEEPER-START-FNXX or JOBKEEPER-FINSH-FNXX e.g. depending on when the employee was first or last paid.

For monthly pay runs:

The JobKeeper payments would calculate to either:

a)$3250 per month or

b) $3000 per month for March-July and $4500 per month for August

Notes: 

  • Either way you choose, the ATO will be reimburse you based on method a).
  • Even if you average out the payment, use method (b), you will not be out of pocket overall because you’ll be reimbursed the exact same amount as you'll have paid the employee. If you don’t want to be out of pocket the $250 leading up to August then you should just pay the employee as per ATO reimbursement method (a).

No matter what pay schedule you use:

  • Still set up and apply the appropriate "fortnightly" pay category to let the ATO which fortnight you commenced and finished paying the employee/s, ie. JOBKEEPER-START-FNXX and JOBKEEPER-FNISH-FNXX - it's the name on the pay category that's informing the ATO, not the dates on or length of the pay period it's reported in.

If you've already processed pay runs with paid dates on or after 30/3/20 you'll need to complete two steps

  1. Adjust the pay category used to pay the employee so far
  2. Notify the ATO of JobKeeper start fortnight

Adjust the pay category used to pay the employee so far

 

If you have already created a new pay category to pay the topup amounts for pay periods up to now then all you have to do is change the name on the pay category you've been using to the name the ATO has provided ie. JOBKEEPER-TOPUP

To edit a pay category name:

  1. Select Employees from the left hand menu
  2. Select Payroll Settings
  3. Select Pay Categories 
  4. Select the pay category you created earlier
  5. Update the name to JOBKEEPER-TOPUP then select Save

The next time you pay employees using the pay category the YTD earnings will be properly reported to the ATO.

If you've used an employee's"usual" pay category for the top up earnings to date you'll need to add the JobKeeper Topup amount in the next pay run, reverse the total top-up amount to date out of the "usual" pay category and put them in again using JobKeeper Topup (Located under the by selecting the Action button and then selecting Add JobKeeper Payment.

  1. Select the employee's name in the next pay run to expand the pay run record
  2. Click on the Actions button and select Add earnings
  3. Choose the existing pay category and enter a negative number of units to reverse the total top-up earnings out to date
  4. Click the Actions button and select Add JobKeeper Payment 
  5. Under JobKeeper options select JobKeeper top-up
  6. Enter in the relevant Top-up amount 

Note: the net effect of these two earnings lines will be $0 but when you lodge the pay event the payments will be correctly reported to the ATO.

Notify the ATO of JobKeeper start fortnight

You'll then need to notify the ATO of the fortnight you wish to start claiming JobKeeper for:

  1. Click the Actions button and select Add JobKeeper Payment 
  2. Under JobKeeper options  select JobKeeper start
  3. Select the relevant JobKeeper Period 
  4. Select Finished 

 Note: If you're claiming JobKeeper for April you will need to notify the ATO and pay your employees by April 30 (the same logic applies for subsequent months).  JobKeeper Start is used to notify the ATO when you're claiming the subsidy from, it's the name on the pay category that's informing the ATO, not the pay period it's reported in.

 

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