Update on JobKeeper and Boosting Cash Flow for Employers

JobKeeper Payment   

Starting from Monday 20 April 2020, you are able to enrol for the JobKeeper payment via the Business Portal.   Please note this is NOT the same as registering your interest, which you may have already completed.   To be eligible for this payment, your business must have either suffered a 30% reduction in turnover or you estimate that a 30% reduction will occur within the subsequent month or quarter. The turnover calculation is based on the sales you report for Business Activity Statement (BAS) purposes.  For more information on how to calculate your turnover reduction, contact our office.   Before you enrol, you must send the JobKeeper employee nomination notice (see attached) to your eligible employees and have them complete the form by the end of April 2020 if you want them to receive the payment for this month. You will not need to send the form to the ATO, however, you will need to keep it with your tax records to document that your employee has agreed that you can claim the JobKeeper payment on their behalf.

What do you need to do before you apply?

The online application will open on Monday 20 April 2020, and you need to be enrolled by the end of April 2020 if you intend to claim JobKeeper from 30 March 2020 for your eligible employees.   If you need assistance, as your Tax Agent we are able to complete the online enrolment on your behalf.

What is next?

Once enrolment is complete, you need to confirm your eligible employees.  This form will be available on the Business Portal from 4 May 2020.

  • Ensure you have paid each eligible employee a minimum of $1,500 per JobKeeper fortnight before tax.
  • Identify your eligible employees in the application form. If you use STP your employee details will be prefilled.
  • Submit the confirmation of your eligible employees online and wait for the confirmation screen.
  • Notify your eligible employees you have nominated them.

If you need assistance, as your Tax Agent we are able to complete the online enrolment on your behalf.

When do I have to pay my employees?

For the first two fortnights (30 March – 12 April, 13 April – 26 April), the ATO 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.   Going forward, you must pay your employees the minimum $1,500 per fortnight to continue to claim the JobKeeper payment.  If you pay your staff weekly, you should pay them a minimum of $750.00 per week.  If you pay less frequently than fortnightly (i.e. monthly), the payment can be allocated between fortnights in a reasonable manner.

When will I receive the first payment?

The first payment will be made by the ATO once you have confirmed your eligible employees on the Business Portal (this only opens on 4 May 2020).   Subsequent payment to the employer will be made after the JobKeeper Declaration Report (see below) has been lodged at the end of the month.

Ongoing reporting:

Each month, you will need to reconfirm that your reported eligible employees have not changed through the Business Portal or via your registered tax agent. This will ensure you will continue to receive the JobKeeper payments from the ATO. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.

Boosting Cash Flow for Employers

Businesses who employ staff and pay PAYGW are eligible for between $20,000 to $100,000 in cash flow assistance from the ATO when the lodge their activity statements over the next 6 months.   There is no process of enrolling for this assistance, you just need to lodge your March Quarter BAS prior to the due date – being 28 May 2020.   The Boosting Cash Flow for Employers payment will be credited towards your March BAS from 28 April 2020 (if you lodge your BAS early, you still won’t receive the credit until after 28 April 2020). The Boosting Cash Flow for Employers payment is not a cheque in the mail, however, any excess credit from the activity statement will generally be refunded to you.