Wage Easy – JobKeeper
With the deadline for companies to register their intent to claim the JobKeeper payments fast approaching and so much overwhelming information, it is understandable that there are concerns and questions. Here we hope to answer some of the current concerns
So just what exactly do Employers need to do?
- The first thing is to make sure that you enrol on the ATO portal under the “Manage Employees” section. Just simply registering your intent to participate has only added you to a mailing list and is not an actual registration.
- Send all the employees who you intend to nominate the form which can be found here: https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/
- Below is the latest information on the ATO website about an extension until the 31st May 2020 that has just been announced.
Extension of time to enrol for the JobKeeper scheme
Please note the Commissioner has extended the time to enrol for the initial JobKeeper periods from 30 April 2020 until 31 May 2020.
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 the end of April.
You can enrol and claim for JobKeeper earlier if you choose. For example, you can enrol by the end of April to claim JobKeeper payments for the two fortnights in April.
Setting up of the allowance in Wage Easy:
Use the link below to help with the setup of the allowances in Wage Easy:
This link will take you to the Sage Knowledge Base. Clients will need to register if they have not already done so.
What if I have already paid for the first fortnight or month before enrolling?
If you have already processed your pays for the month or fortnight in question then you can do a supplementary payslip using the JOBKEEPER-START-FNXX allowance (where the XX is the relevant month according to the table below):
You will need to then create the EFT file and Update STP. This will be what the ATO use to confirm which employees you are claiming for. This allowance only needs to be entered on one pay event. Do not forward date the finish date – this code will only be used on the very last one that you wish to claim for.
My fortnights don’t line up with the ATO’s – do I need to change mine?
No, you do not need to change your pay frequencies. These fortnight dates are guidelines only. As long as your payments occur within those ranges you will be reimbursed for them. The ATO is aware that not everyone will align with their dates.
What if I have already processed my pay but haven’t paid the $ 1500 per fortnight?
You can still process this via a supplementary payslip or on your last payrun for the month of April as one JOBKEEPER-TOPUP allowance. Be sure the check that tax is calculating correctly and adjust accordingly if needed.
What if I pay my casuals weekly and won’t know what the shortfall will be?
If you pay your casuals on a weekly basis and their hours vary you can pay them as normal in the first week and then do the top up in the second week. This has to be done in the second week to ensure that you are eligible to claim for this employee. April is currently the only month where you can top up for the whole month in one. After that all fortnights have to equal $ 1500 for you to be eligible to claim
What if an employee has a salary sacrifice for super that would take them under the $ 1500 – do I have to top them up?
The answer is no, you do not have to top them up. As long as the gross amount is $ 1500.00 they can still claim the salary sacrifice or any other fringe benefit amounts. By running the report under reports/user defined/payment summary including Salary Sacrifice and Fringe Benefits you will be able to see the difference between the Gross and Taxable income that are two different totals but the ATO will be looking at the Gross:
Disclaimer – This article has been written using knowledge that is current at this time. It is advisable to always check the ATO’s website for any updates. For advise on your specific circumstances the ATO or your tax advisor should be consulted.
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