everything you need to know.
Updated 21 July, 2020 to include ongoing monthly reporting requirements and JobKeeper Extension.
Important Key Dates
24 August 2020
31 August 2020
28 September 2020
ASAP after each End of Month
You should lodge your monthly declaration ASAP after the end of each month. The ATO has specified a due date of the 7th of each month, although we understand that this is a soft deadline.
This means you need to keep your books up to date so you have your revenue figures ready to report. The sooner you submit your monthly declaration, the sooner you will receive your Jobkeeper payment.
+4 Business days after submission of Monthly Declaration
The ATO has advised that JobKeeper payments will be made approximately 4 business days after submission of each monthly declaration.
To help guide you through this process we have compiled a step-by-step guide. If you are a Link payroll client, keep an eye out for an email from your bookkeeper.
- Under JobKeeper, businesses significantly impacted by COVID-19 will be able to access a subsidy from the Federal Government to support them in continuing to pay their employees.
- Eligible businesses will receive a subsidy of $1,500 per fortnight per employee for up to 6 months.
- The subsidy will be back paid to 30 March 2020, and payments will start flowing from early May 2020 for eligible businesses.
You can find more detail on JobKeeper here.
What do you need to do to get ready?
It is essential that you determine that your business is eligible to participate in JobKeeper AND that the employees you are nominating for JobKeeper are eligible to receive it.
4 steps to take before you
enrol for JobKeeper.
If you process your own payroll, here are the steps you must action immediately. As a Link client, we encourage you to reach out to us if you require any assistance in relation to JobKeeper or any other government stimulus. If you do require additional help please contact our resident JobKeeper expert, Thea, on 07 3899 8311 or complete our contact form below. Please action all the items you can ASAP so we may help you finalise any steps as necessary.
How to enrol for JobKeeper.
If you are wanting to access the first month of JobKeeper payments, then you will need to submit your enrolment application to the ATO via the Business Portal using your myGovID. If you don't already have a myGovID, click here to read our article to get it setup fast.
If you are wanting to get access to the first month of payments, you will need to lodge your application by 8 May 2020 (where you want to receive JobKeeper payments in May for April), with a further extension to 31 May 2020 (in this case JobKeeper payments for April, will not be received until June). The original due date was 26 April 2020. If you miss this deadline, you can still apply for the subsidy, but you won’t be eligible to receive payments for the month of April.
Here is what you need before you enrol:
- Know if you are an eligible business due to turnover reduction,
- Know how many eligible employees that you employ, and;
- Complete the employee nomination notices that can be found here (Employer Declaration and Employee Nominations).
Refer to our handy JobKeeper eligibility and preparation guide here.
It is absolutely essential to ensure that your business is eligible to participate in JobKeeper. Your decision must be considered and documented to ensure that things stack up if the ATO wanted to verify your eligibility in the future.
Many businesses (particularly those which have had to cease operation) will be obviously eligible, but for many more, it may not be obvious that they have or have not met the 30% decline in revenue requirement. Also, there are a handful of criteria for employees to satisfy which means that not all your staff may, in fact, be eligible.
If you need our support with JobKeeper, we’re here to help. We’re charging discounted fees for this essential service to provide as much help as possible to those who need it, and to also keep our team working full time to support our small business clients.
If you are a Link client, send us an email letting us know you have enrolled & attach a copy of your enrolment form. This means if we need to get involved with your application we have the details on hand. Send your enrolment form to your bookkeeper or advisor.
As you can see, the enrolment process is fairly straight forward.
On the other hand, determining if your business and employees are eligible for JobKeeper can be far from straight forward. As mentioned at the outset, it is essential that you determine that your business is eligible to participate in JobKeeper AND that the employees you are nominating for JobKeeper are eligible to receive it.
If you would like assistance from Link in relation to eligibility, enrolment or anything else JobKeeper, please reach out to us here.
*Please login to Xero to access this
Once you have
enrolled for JobKeeper.
Keep your Xero books up to date.
You will be required to report sales each month so it is essential that your Xero file is regularly updated so you can lodge your figures ASAP after the end of each month.
Ongoing monthly reporting to the ATO
The form includes many questions that are the same or similar to those which you completed when you enrolled. Take the opportunity to make sure you are 100% certain of the answers when you complete it this time.
Before you start
Ensure you have all the necessary documentation you require for the monthly declaration prior to starting as you cannot save and come back later. Information you will need is;
- Name, Tax File Number (TFN) and date of birth details for any additional employees and business participant
- Actual GST turnover for this month (make sure Xero is up to date!) and projected GST turnover for next month.
- Confirm you still satisfy eligibility as a business and that your employees are eligible (and you have a signed, completed employee nomination for each employee)
JobKeeper Update: Announcement of JobKeeper Extension to March 2021
On 21 July, the Federal Government announced that its extending JobKeeper until 28 March 2021 while introducing refinements to ensure that it is targeted to support those organisations which continue to be significantly impacted by COVID-19.
Existing JobKeeper payments and eligibility
Firstly, note that there is no change to JobKeeper (payments or eligibility) up to 30 September 2020. This is great news for all businesses currently eligible for JobKeeper. Even if your business is starting to recover, you’ll remain eligible to the end of September as was originally announced.
Changes announced 21 July 2020, effective from October 2020 to March 2021
JobKeeper payments post September 2020 are being referred to as the JobKeeper Extension. So, for this article we will use this name when referring to JobKeeper post September 2020.
If your business is still being adversely affected by COVID-19, then it’s likely you may be eligible for the JobKeeper Extension.
From 28 September 2020, eligibility for the JobKeeper Payment will be based on actual turnover in the relevant periods. The payment will also be stepped down and paid at two rates. Relevant date of employment will move from 1 March to 1 July 2020, increasing employee eligibility for the existing scheme and the extension.
Full details of the JobKeeper Extension can be found here.
Action required for the JobKeeper Extension
If you are currently eligible for JobKeeper up to September 2020 AND your business has not experienced an actual decline in sales of at least 30% for the September quarter and June quarter 2020
- No action is required. You’ll continue to receive JobKeeper for your eligible staff up to the original 30 September date. You won’t be eligible to receive the JobKeeper Extension for the December quarter 2020 or the March quarter 2021.
If you are currently eligible for JobKeeper up to September 2020 AND your business has suffered an ongoing actual decline in sales of at least 30% since April 2020.
- You’ll be eligible for the JobKeeper Extension. We anticipate that you will need to re-apply to receive the JobKeeper Extension for both the December 2020 quarter and the March 2021 quarter. There is no guidance yet on the exact mechanism to do this, but we’ll share more details around this as we get nearer to the end of September.
If you have not previously been eligible for JobKeeper, but you are now (because you have experienced a 30% decline)
- Determine if you satisfy the eligibility tests, then enrol for JobKeeper up until September 2020.
- It is not clear how businesses who become eligible for JobKeeper in July/August/September will be treated in terms of eligibility for the JobKeeper Extension. More details on this to come.
Please reach out to us at Link if you need any help with the JobKeeper Extension.
Need more help?
Although it is fairly straight forward to enrol a business for JobKeeper and to use Xero to notify the ATO of eligible employees, it is very often not straight forward to determine if the business AND its employees are in fact eligible for JobKeeper or the JobKeeper Extension.
It is critical that you correctly determine the eligibility of your business AND of your employees.
It is not enough to ‘assume a 30% decline’ nor is it enough to ‘assume employees are eligible’. You absolutely must undertake the exercise to calculate your decline in revenue to satisfy the test. Then you must consider every employee on your books and confirm they are eligible.
If you need any support with this, Link is here to help. This is how we are assisting small businesses with JobKeeper ;
- Helping to calculate revenue decline for eligibility
- Helping to determine employee eligibility and advising on the necessary documentation
- Enrolling businesses for JobKeeper
- Configuring and updating payroll records as necessary
- Taking care of ongoing reporting
Reach out to us ASAP if you need any assistance with JobKeeper or the JobKeeper Extension.
How can we help you?
The information contained on this website is presented as a guide only and is not intended to replace professional advice relevant to your specific circumstances. While the information on this website has been verified to the best of our abilities, we cannot guarantee that there are no mistakes or errors. Link Advisors take no responsibility for any omissions, inaccuracies or loss incurred by reliance on this information.