What exactly is the JobKeeper payment subsidy and how does it affect my business?
The Federal Government announced the introduction of the JobKeeper payment subsidy program to support employees and business. The JobKeeper Payment is aimed at helping businesses affected by the COVID-19 pandemic to help cover the costs of their employees’ wages so that more employees can retain their job and continue to earn an income and you business can recover quicker afterwards.
What we Know so Far;
- The program is based on eligibility criteria that employers must assess through the ATO.
- The program is effective as at 30 March 2020. Any employer who continues to pay employees from this date can be reimbursed back to this date for the prescribed amount.
- Included will be employees employed as at 1 March 2020. This incorporates employees who have been stood down and/or re-hired employees since that date. Employees hired since 1 March are not included.
- Eligible employers can expect to receive the first JobKeeper Payment on or around the first week of May.
- Employees will be nominated by their employer – they can only receive payments from one employer
- If an employee is normally paid over $1500 in a fortnight, they should be paid their normal pay. The $1500 will act as a subsidy towards their pay.
- If an employee is normally paid under $1500 in a fortnight, it is expected that the employer will pay the full $1500 entitlement, with the JobKeeper payment treated as a top up payment against their ordinary pay.
- Tax should be withheld on payments. The top-up payment is not subject to super, but super payment will be at the discretion of the employer. However Super must still be paid on their normal pay.
- At this stage there will be no change to STP reporting. All payments will be subject to STP reporting. If an employer is currently not using STP reporting, they are still eligible to apply and a manual process will be used for reporting.
The ATO have advised that they are working through a number of clarifications from payroll providers and industry to address outstanding questions.
Aptus Business Solutions are here to assist with your Wage Easy payroll changes that may need to be made when the time arises, these may include:
- creating new JobKeeper payment codes
- top up allowance codes
- Leave requirements – taking unpaid leave
– Taking leave paid at half pay for double the hours
JobKeeper Payment Subsidy may change so please keep up to date with all the latest information from the ATO’s website https://www.ato.gov.au/
To Enrol for the Jobkeeper Payment Click Here
Contact us at email@example.com for further information on how to configure your Wage easy to support these changes.