The JobKeeper Payment Scheme
The JobKeeper payment is open to eligible employers to enable them to pay their eligible employee’s salary or wages of at least $1,500 (before tax) per fortnight.
Eligible employers will be reimbursed a fixed amount of $1,500 per fortnight for each eligible employee.
Employers, the key dates and key actions over the next few weeks to receive the JobKeeper payment are crucial!
- Get the cash,
- Get it as quickly as possible, and
- Get it right
In order to achieve this the following “Get Ready” instructions will assist in ensuring that this can be achieved;
“Get Ready” Instructions
- Check if you, as an employer, and your nominated employees meet the eligibility requirements.
- Notify eligible employees that you (their employer) intend to participate in the JobKeeper scheme.
- Send your eligible employees the JobKeeper Employee Nomination Notice to complete and return by end of April to confirm that they agree to you being nominated as the employer to receive JobKeeper payments from. Do this ASAP.
- Keep the Employee Nomination Form on file for five years and provide a copy to your registered tax agent if you use one.
- Continue to pay the minimum $1,500 before tax to each eligible employee per JobKeeper fortnight. The first fortnight starts on 30 March and ends on 12 April. Alternatively, you can make one combined payment of $3,000 for the first two fortnights paid by end of April 2020. Eligible employees must have been paid $1,500 per fortnight in order to receive the JobKeeper payment. In some cases, such payment may be more than the employee’s current salary.
- Enrol (register) for JobKeeper online from 20 April using the Business Portal and authenticate with myGovID. You must do this by no later than the end of April to claim JobKeeper payments for April.
- In the online form, provide your bank details and indicate if you are claiming an entitlement based on business participation, for example if you are a sole trader.
- Apply for the JobKeeper payment using the application form on the ATO Business Portal (this will be available from 4 May 2020 onwards).
Employers need to be aware of the work involved and their obligations in respect to the JobKeeper Payment scheme including;
- Eligibility assessment (initial)
- Documentation & registration
- Monthly reporting
- Ongoing employee eligibility
What happens if I get it wrong?
If you claim the JobKeeper subsidy and whether you or the employee was not eligible, the Tax Commissioner can claw back any ineligible payments made.
In addition, general interest charges apply. If you have paid employees the $1,500 amount only to find you or they are not eligible, there is no recourse to claw back these payments to employees.
It is therefore strongly recommended that you seek professional advice if you have any questions or concerns in respect to the JobKeeper Payment scheme. Please feel free to contact MMT Accountants & Advisers should you require assistance.