everything you need to know.
Updated 5 May 2020 to include ongoing monthly reporting requirements.
Important Key Dates
Monday, 20 April, 2020
Enrolment for JobKeeper opens.
Sunday, 26 April, 2020
You must submit by this date to claim the first 2 fortnightly payments in early May.
You must provide your employees with written confirmation of your application within 7 days.
Monday, 4 May, 2020
Ongoing monthly reporting opens for active JobKeeper programs via the ATO Business Portal (or MyGov for sole traders).
Friday, 8 May, 2020
The last day to backpay employees where necessary to top them up to at least $1,500 per week (before tax) for JobKeeper fortnight 1 (30/03 to 12/04) and JobKeeper fortnight 2 (13/04 to 26/04). The original dateline for this was 26 April, 2020.
Sunday, 31 May, 2020
Extended due date for enrolment where you intend to claim JobKeeper payments for April & May 2020 (Original deadline was 26 April, 2020).
Monthly reporting due for April 2020 JobKeeper payments.
(Note: There is no hard deadline for the monthly JobKeeper reporting, however, we recommend that you aim to get the first monthly declaration done ASAP. Delaying the monthly declaration will inevitably delay your receipt of the JobKeeper subsidy for the month.)
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)
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.
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.
The things we
still don't know.
We are starting to get a lot more clarity now on the package but there are a couple of things we still don’t know including:
- How we will be able to apply for discretion?
- How ATO will recover from employers who expected to be eligible but then do not meet the 30% decline in the turnover test.
- Error tolerance if actual results end up not meeting a 30% drop.
- How employers would be able to undo terminations already made (including payouts of leave)?
- How employees would be treated if re-hired after applying for JobSeeker payments?
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.