JobKepper Scheme

JobKeeper Scheme

Written by: Institute of Certified Bookkeepers

The JobKeeper Scheme is underway.  Here is what we currently know and for all these steps we will be providing you with authorities to enrol you in the system and templates to meet all your eligibility and record keeping requirements and help you determine your business eligibility.

Decline in Turnover

Each individual entity has to test if their individual entity turnover did decline. If so, they then apply either the 30% or 50% test (that was determined by the Group Aggregated Turnover)
Aggregated turnover of all entities that are connected or affiliated with you is used for the purpose of determining if the decline in turnover % of 30% if turnover of the group is below $1b or 50% if over.

NFPs registered with ACNC are only 15%.

Comparing Turnover: Compare one of
· GST turnover for March 2020 with March 2019
· Projected GST turnover for April 2020 with April 2019
· Projected GST turnover for quarter starting April 2020 with same quarter in 2019
· Other (let’s discuss with you these alternative tests) https://www.icb.org.au/COVID-19/JobKeeper/Decline

Eligible Employees

You cannot claim for employees who
· Were first employed by you after 1 March 2020
· Left your employment before 1 March 2020
· Have been, or have agreed to be, nominated by another employer

Remember: Employee can only receive JK payments or support through ONE employer. And the employee must agree to be nominated by you.

After you have worked out you and your employees are eligible
If you meet the eligibility criteria and want to start claiming the JobKeeper payment on behalf of your employees, you need to start paying them at least $1,500 per fortnight (before tax) and continue to pay them for as long as you keep claiming.

When do I have to pay?

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 8 May. This means that you can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April.
You cannot claim the JobKeeper payment on behalf of employees who were not paid at least $1,500 before tax during each JobKeeper payment period.
You cannot claim the JobKeeper payment in advance. The JobKeeper payment is a reimbursement from the ATO to an employer in arrears and cannot be paid in advance in any circumstances.
Employees who were stood down or on long term leave
Employees who have been stood down from work under the Fair Work Act without pay may still be eligible employees as long as they were in your employment and met the eligibility criteria on 1 March 2020.

You will need to have paid them at least the minimum amount of $1,500 for each fortnight you claim in order to receive the JobKeeper payment.

Employees who have been terminated

If you terminated an employee after 1 March 2020, you can re-engage them, and they will be eligible if they met the eligibility criteria on 1 March 2020.
If you want to claim the JobKeeper payment for employees you have re-engaged, you will need to:
· confirm they want to be re-hired and participate in the JobKeeper scheme with you
· re-engage the employees you want to claim for
· start paying them a minimum of $1,500 (before tax) for each fortnight they are employed, and you claim for.

You will only be paid a JobKeeper payment for employees from the fortnight they were re-engaged. You cannot claim retrospectively for employees you re-engage.

You as an Employee or Business Participant for JobKeeper

If you are an employee of your business, then you will follow all the guidance as an employee and complete all paperwork necessary for eligibility and continue to pay yourself at least the $1500 (before tax) per fortnight.

If you are a self-employed, sole trader, partner in a partnership or trustee in a trust then it is not necessary that you pay yourself $1500 per fortnight.
We are able to assist you with all steps and processes involved in the JobKeeper scheme which includes the setup in your payroll system and the respective reporting to the ATO. We will also be in communication with you and your accountants to ensure a consistent and appropriate interactions and provision of service.

If you enjoyed this article and would like to see others, then click on the link below.

Accountability BAS and Bookkeeping Services provide professional bookkeeping and BAS services to businesses in most Australian states.

What our clients say about us…

“I had the pleasure of being introduced to ABBS through Jo Bacon the WA representative. The professional service.  I have received has been so essential in assisting me with my new business, I am so grateful for the expertise, professionalism and excellent customer service I have experienced.” Marion B

“Thanks to Steve Cocks from ABBS we managed to get all the books up to date and in no time, … and that took the weight off my shoulders so I could focus on developing my business and moving forward in a more organized and structured way, keeping on top of things every month which makes life much easier.”  Elisabeth G

“As an ex-bookkeeper, I’m pretty fussy about how I like things done and I’ve found Caran from ABBS to be a pleasure to work with. She’s competent and efficient and now that I have her helping me with the bookkeeping for my business, I wouldn’t be without her.”  Sandy T

    “As a sole director of a regional law firm,  I’m very conscious of the need to have the proper business support, particularly in the areas of bookkeeping and trust accounting. Since I outsourced those components of my business to ABBS, I feel as if these vital components of my business are in expert hands and I can relax knowing that it is all being done properly , efficiently and legally.  Rob’s expertise with running a business including his insight with managing employees, his ready availability for a discussion at any time on any business matter, his advice and support, have been absolutely invaluable to CastleGate Law.  In addition, Janice from ABBS looks after my trust accounting through Leap with equal efficiency and expertise – she and Rob make a great team for any law firm.  Not only do I feel like I’m sharing the considerable burden of running a law firm, but I feel like in Rob I have someone on my side as a business owner, because of his implicit understanding of business matters, his encouragement and support. For all these reasons I cannot recommend ABBS highly enough as additions to any law firm or business partner. ”  Kate R

If you would like a brief chat or schedule an online meeting, then call me on:

07 3040 7222

If you would like to get an instant quote:

To be able to provide you with a relatively accurate quote, we will need you to provide some core information that is used for this purpose only.

We suggest you have the bank statements or closely estimate the number of transactions on all business bank accounts and credit cards for the last three months.

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