JOBKEEPER PAYMENT: Is your business eligible? – Australian Government Economic Response

Suzanne Johnstone
Apr 21, 2020
4 min read

What now?

JobKeeper Payment

To be eligible for the JobKeeper Payment, there are 2 different tests.

Where there were businesses that thought they may not be eligible, due to being in business for less than 12 months, thanks to the ATO’s “Alternative Test”, there could be respite. It will come down to the Tax Commissioner’s discretion.

According the to ATO, as at 20th April 2020;

"We will be making a legislative instrument to deal with new businesses in operation less than a year, and some other circumstances such as businesses who had a temporary fall in turnover in 2019 due to drought. This will be available soon."

Every Business, by now, knows that the overall test for eligibility for most businesses is whether your business has faced either a 30% (or 50%) fall in your turnover since this time LAST YEAR.

The “Basic Test” criteria are a little more forgiving than I had first thought.

The Business can choose monthly or quarterly, regardless of whether they report quarterly or monthly.

Another bonus is that if the Business finds that their turnover reduced to either 30% or 50% in later months, you can still be eligible to apply for the JobKeeper Payment.

According to the “JobKeeper guide – employers reporting through STP” page on the ATO website (https://www.ato.gov.au/general/jobkeeper-payment/In-detail/JobKeeper-guide---employers-reporting-through-STP/) the steps to take are;

1. Enrol for the JobKeeper Payment

If your Business is eligible and your projected GST turnover for the turnover test period falls short of your current GST turnover for the relevant comparison period, by the specified percentage (generally 30%)...

Enrol for the JobKeeper Payment via the Business Portal using myGovID, and provide your bank details and entitlement basis using the online form and provide estimated numbers of Employees for the first 2 JobKeeper fortnightly payments. Identify your Employee’s eligibility for JobKeeper Payment. The ONLY Visa’s that are eligible for this payment are Protected Special Category and Special Category (Subclass 444) Visa Holder.
Once you have identified your eligible Employee’s, you need to send them the JobKeeper employee nomination notice, and keep it on file. Your Employee cannot claim the JobKeeper Payment with any other Employer. This form must be returned to the Employer by 30th April 2020.

2. Identify and maintain your eligible employees. This can be done in 1 of 3 ways.

Directly into your payroll software by 30 April 2020, providing your software has been updated with JobKeeper functionality
Through the Business Portal – 200 employees or less
Through the Business Portal – more than 200 employees

The ATO’s preferred method is using STP. If you have less than 200 Employees, you can use the online ATO Portal. You have to run an STP file update (even if that means running an “off cycle” payroll), where you enter a JobKeeper specific allowance code (JOBKEEPER-START-FNxx [the xx refers to the week ending that the Employee JobKeeper Payment will eligible for the JobKeeper Payment] – set up in your Payroll Items as “Allowance Other”).

If your Business does not utilise the STP method to upload your Payroll Information, and you have less than 200 Employees, you can upload the information via the ATO Portal.

“Alternatively you can use the JobKeeper Payment Guide sample payload files – Blank file (XLS, 11KB)This link will download a file and Example file (XLS, 11KB)This link will download a file – to produce your own JobKeeper report and provide it back to the ATO by uploading via the Business Portal Transfer file function.”

There are 3 different codes that you will need to set up in your payroll, under Allowance (Other).

i. JOBKEEPER-START-FNxx

ii. JOBKEEPER-FINISH-FNxx

iii. JOBKEEPER-TOPUP

As we are now in the 3rd week of April, unless your Business run a monthly pay cycle, you would have already processed either 3 weekly pays or 1 fortnightly pay.

The JOBKEEP-TOPUP is the code you will use to process a balance from what you have already paid, up to the $1,500 for the first two weeks of April.

This out of cycle pay is only available for the month of April and must be completed by 30th April 2020.

3. Make a business monthly declaration.

Each month you need to log onto the Business Portal and review the number of eligible employees for each JobKeeper fortnight.

You also have to provide your current and projected GST turnover. This is not a retest of your eligibility, but rather an indication of how your business is progressing under the JobKeeper Payment scheme.

You will also have to re-confirm your contact and bank details for payment from the ATO.

From the 4th May 2020, using the ATO Business Portal you can apply to claim the JobKeeper payment.

The ATO will have on file your payroll records from the STP upload.

So many Small and Medium Enterprises are struggling to keep open, that they cannot afford to miss this opportunity to claim this Wage Subsidy.

Putting it into the “too hard basket” is not an option!

If your Business is confused about how to set up your Payroll codes or have any questions about how to assess if your Employees are eligible, that's where Concise Advice & Business Solutions Pty Ltd can help.

We can assess your current business with a fresh pair of eyes, and provide CONCISE ADVICE and offer BUSINESS SOLUTIONS.