There are different criteria for charities or businesses with over $1 billion in turnover. For information on these entities please contact our office.<\/em><\/p>\n To be eligible for any JobKeeper payments the employer must demonstrate that it has suffered a fall of at least 30% in its actual or projected turnover in:<\/p>\n when compared to the actual 2019 turnover for the same period.<\/p>\n Turnover is defined according to the current calculation for GST purposes and includes taxable supplies and GST free supplies. It only includes Australian turnover (not overseas income).<\/p>\n The employer can choose a month or quarter for the test to be applied and at this stage it does not appear linked to the employer\u2019s GST reporting cycle.<\/p>\n Once eligibility has been determined there is no requirement to reapply, irrespective of turnover in subsequent months, however it will be a requirement to report monthly actual and projected turnover figures.<\/p>\n The ATO will be providing more guidance about self-assessment for forecast decreases in turnover.<\/p>\n The Tax Commissioner will have the discretion to consider additional information to verify that the business has been unfavorably affected by Coronavirus. The ATO is still to provide further guidance on the alternative turnover test.<\/p>\n The ATO has announced there will be some tolerance for error; (exact tolerance has not been disclosed), where the business receives the JobKeeper payment based on their projected reduction in turnover however actual turnover results in ineligibility.<\/p>\n There is therefore a risk that the ATO may deny a business\u2019s eligibility and require the business to pay back the JobKeeper payment plus interest with no recourse over the employees.<\/p>\n It is critical for businesses to document & keep all evidence about their calculation for their projected turnover.<\/p>\n There is no requirement for participating in the JobKeeper scheme. If the subsidy is not affordable or not in the best interest of the business or the employees than the business is not required to apply.<\/p>\n No, there are eligibility criteria for employees.<\/p>\n An employee is eligible if they were employed by the employer during the fortnight and as at 1 March 2020, and:<\/p>\n If an employee is on paid or unpaid leave; annual or long service leave, they are still an employee and therefore meet the eligibility requirement.<\/p>\n An employee is not eligible if they receive:<\/p>\n There are some concessions for casuals that have been with current employer for less than 12 months due to business restructure, business sale or transfer of employees within a corporate group.<\/p>\n Those ineligible should seek advice from Services Australia about other supplement such as the Job Seeker payment, which currently includes a bonus for the Coronavirus crisis. For more information on payments available to individuals, please refer to our article Stimulus Packages for Individuals\u00a0<\/a><\/p>\n If an employee was terminated after 1 March 2020 they can be re-hired and they will be the eligibility criteria.<\/p>\n The rehire will be on a new employment contract and as such the business has no entitlement to recover any redundancy payout.<\/p>\n You can only claim the JobKeeper payment if you first pay the $1,500 per fortnight payment to each eligible employee. These payments should be made via your payroll system (with relevant tax withheld) and will be reported to the ATO through Single Touch Payroll.<\/p>\n For the first two fortnights (30 March -12 April, 13 April -26 April, the ATO has allowed that these payments can be made late \u2013 provided it is paid by you in full by the end of April.<\/p>\n Payments will be made to the eligible employer by the ATO monthly in arrears starting in May 2020.<\/p>\n If you cannot afford to make the payments upfront, you may apply to your bank or state government about accessing funding to cover the wages as soon as possible.<\/p>\n Alternatively you are not required to apply for the JobKeeper payment.<\/p>\n All eligible employees must be paid a minimum of $1,500 before tax per fortnight, even if their regular wage is lower. Failure to pay the full payment will result in severe penalties.<\/p>\n If their regular wage is higher & they have not been stood down – the JobKeeper payment will help subside part of the wage cost.<\/p>\n Withhold Tax<\/p>\n Yes – you need to withhold tax as appropriate based on the employee\u2019s fortnightly wage.<\/p>\n Superannuation<\/p>\n The requirement for superannuation will depend if the employee has been stood down or not.<\/p>\n Employee entitlements will continue to accrue for those receiving JobKeeper payments, even if they have been stood down.<\/p>\n If you fail to pay the full $1,500 JobKeeper payment, you will be in breach of the Fair Work Act and could face penalties for each contravention of $12,600 for individuals and $126,000 for companies. Other penalties may also be applied under the Commonwealth Criminal Code.<\/p>\n We realise that the JobKeeper payment scheme can be hard to understand. To assist you, we have prepared some examples to explain common scenarios<\/p>\n An eligible employer projects their turnover for the quarter ended 30 June 2020 will be $300,000, the corresponding period in 2019\u2019s turnover was $500,000.<\/p>\n The turnover decline meets the required downturn of 30% and therefore they apply for the JobKeeper payment.<\/p>\n The actual turnover for the June 2020 quarter was $350,000.<\/p>\n The actual turnover decline (-30%) still meets the eligibility requirement and therefore the employer remains eligible for the JobKeeper payments through to September.<\/p>\n An eligible employer projects their turnover for the quarter ended 30 June 2020 will be $300,000, the corresponding 2019 period\u2019s turnover was $500,000.<\/p>\n The projected turnover decline meets the required downturn of 30% and therefore the employer may apply for the JobKeeper payment.<\/p>\n However the business performed better than previously projected and the actual turnover for the June 2020 quarter was $400,000.<\/p>\n The actual turnover decline (-20%) no longer meets the eligibility requirement and therefore the employer is likely to be required to repay the JobKeeper payments to the ATO. This is a significant risk.<\/p>\n The ATO will be accepting a margin of error between projection and actual turnover however this information is yet to be finalised.<\/p>\n An eligible employer projects their turnover for the quarter ended 30 June 2020 will stable compared to the corresponding 2019 period. However it is predicting a significant decline in the September 2020 quarter.<\/p>\n June decline does not meet the required downturn and therefore they do not apply immediately.<\/p>\n The employer is eligible to apply for the JobKeeper payment from 1 July 2020. The employer will only receive payments for 1 July 2020 to 27 September 2020. There is no back payment.<\/p>\n An eligible employer projects their turnover for the June 2020 to meet the eligibility criteria and as such applies and the actual results match the projections.<\/p>\n However due to the nature of the employer\u2019s business they forecast the September 2020 quarter to be stronger.<\/p>\n As the employer met the turnover test in June 2020 quarter there is no requirement to re-test in future periods. As such the employer will be eligible for the JobKeeper payment for the full period \u2013 April \u2013 September 2020.<\/p>\n This may be subject to change as the ATO has yet to finalise their position.<\/p>\n An employer who receives the JobKeeper subsidy must pay their employee the full JobKeeper payment of $1,500 per fortnight, before tax.<\/p>\n Therefore is an employee whilst working usually earns $1,000 per fortnight.<\/p>\n The employer must pay:<\/p>\n There is no requirement to pay super on the surplus subsidy.<\/p>\n An employer who receives the JobKeeper subsidy must pay their employee the full JobKeeper payment of $1,500 per fortnight, before tax.<\/p>\n Therefore is an employee who is currently stood down.<\/p>\n The employer must pay:<\/p>\n There is no requirement to pay super on the JobKeeper payment.<\/p>\n An employer who receives the JobKeeper subsidy must pay their employee the full JobKeeper payment of $1,500 per fortnight, before tax.<\/p>\n Therefore is an employee whilst working usually earns $3,000 per fortnight.<\/p>\n The employer must pay:<\/p>\n The JobKeeper payment is retained by the employer to subsidise the employees wage during the coronavirus downturn.<\/p>\n An employer who receives the JobKeeper subsidy must pay their employee the full JobKeeper payment of $1,500 per fortnight, before tax.<\/p>\n Therefore is an employee who is currently stood down<\/p>\n The employer must pay:<\/p>\n There is no requirement to pay super on the JobKeeper payment.<\/p>\n The employer is not required to \u2018top up\u2019 the subsidy to the employee\u2019s usual wage \u2013 but can under their discretion.<\/p>\nHow is the decline in turnover for JobKeeper measured?<\/h2>\n
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What if I wasn\u2019t in business a year earlier or there have been significant changes?<\/h2>\n
What if I estimate the decline in my income for JobKeeper application incorrectly?<\/h2>\n
Do all businesses have to apply for the JobKeeper Payment?<\/h2>\n
Are all Employees eligible for the JobKeeper payment?<\/h2>\n
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What if employees have been terminated \/ made redundant?<\/h2>\n
How and when will the JobKeeper subsidy payments be made?<\/h2>\n
What if the business cannot afford the payment?<\/h2>\n
How much of the JobKeeper payment do I need to pay the employee?<\/h2>\n
Do I need to withhold and do I need to pay Super on the JobKeeper payment to Employees?<\/h2>\n
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Will Employees Accrue Entitlements?<\/h2>\n
What if I don\u2019t pay my Employees their JobKeeper payment?<\/h2>\n
How do I apply for the JobKeeper Scheme?<\/h2>\n
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JobKeeper Examples<\/h2>\n
JobKeeper Payment – Employer Eligibility<\/h2>\n
Example 1 \u2013 Projected & Actual Decline greater than 30%<\/h3>\n
![\"E1](\"https:\/\/www.walshaccountants.com\/wp-content\/uploads\/2020\/04\/E1-1.png\")
<\/p>\n![\"E](\"https:\/\/www.walshaccountants.com\/wp-content\/uploads\/2020\/04\/E-1-2.png\")
<\/p>\nExample 2 \u2013 Projected Decline greater than 30%. & Actual Decline less than 30%<\/h3>\n
![\"E2](\"https:\/\/www.walshaccountants.com\/wp-content\/uploads\/2020\/04\/E2-1.png\")
<\/p>\n![\"E2](\"https:\/\/www.walshaccountants.com\/wp-content\/uploads\/2020\/04\/E2-2.png\")
<\/p>\nExample 3 \u2013 No eligible decline for June Quarter but decline in September Quarter<\/h3>\n
![\"E3](\"https:\/\/www.walshaccountants.com\/wp-content\/uploads\/2020\/04\/E3-1.png\")
<\/p>\n![\"E3](\"https:\/\/www.walshaccountants.com\/wp-content\/uploads\/2020\/04\/E3-2.png\")
<\/p>\nExample 4 \u2013 Eligible decline for June Quarter but no decline in September Quarter<\/h3>\n
![\"E4](\"https:\/\/www.walshaccountants.com\/wp-content\/uploads\/2020\/04\/E4-1.png\")
\n![\"E4](\"https:\/\/www.walshaccountants.com\/wp-content\/uploads\/2020\/04\/E4-2.png\")
<\/p>\n![\"E4](\"https:\/\/www.walshaccountants.com\/wp-content\/uploads\/2020\/04\/E4-3.png\")
<\/p>\nJobKeeper Payment – Paying Employees<\/h2>\n
Example 1 \u2013 Employee earns less than $1,500 per fortnight & is still working<\/h3>\n
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Example 2 \u2013 Employee earns less than $1,500 per fortnight & is stood down<\/h3>\n
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Example 3 \u2013 Employee earns more than $1,500 per fortnight & is still working<\/h3>\n
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Example 4 \u2013 Employee earns more than $1,500 per fortnight & is stood down<\/h3>\n
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How can Walsh Accountants Help?<\/h2>\n