Coronavirus – David Bentley Taxation Services, Gympie Accountant

Important Information for Clients

COVID-19

COVID-19 – Coronavirus - 15 April 2020

We have created a Facebook page to deliver information in a more timely manner - please visit us at https://www.facebook.com/davidbentleytaxationservices/

OFFICE INFORMATION

Our office remains open at present & will continue to be open until I’m told to stay home.
We’re operating on limited staff so please be patient.
We’re limiting client contact so you can drop off or collect documentation only.
We are not having face-to-face appointments but will do phone appointments.

General Overview
Updated Fact Sheets are attached or can be accessed at https://treasury.gov.au/coronavirus/jobkeeper.
A new FAQ Fact Sheet is very informative & is attached or can be accessed at https://treasury.gov.au/sites/default/files/2020-04/JobKeeper_frequently_asked_questions_2.pdf.
We’re finally getting details from the ATO!

Important points sourced from the ATO at https://www.ato.gov.au/General/JobKeeper-Payment/:

  • You cannot claim the JobKeeper Payment in advance – it is a reimbursement from the ATO to an employer in arrears
  • Employers must pay eligible employees a minimum $1,500 per fortnight (before tax) to claim the JobKeeper Payment
  • If employers do not continue to pay their employees each pay period, they will cease to qualify for the JobKeeper Payment
  • As per ‘JobKeeper Payment – Frequently Asked Questions’: In cases where this presents cash flow difficulties, businesses may want to speak to their bank to discuss their options. The banks have said businesses may be able to use the upcoming JobKeeper payment as a basis to seek credit in order to pay their employees until the scheme is making its first payments.
  • Turnover must fall by 30% or more – you can compare either:
    o GST turnover for March 2020 with GST turnover for March 2019
    o Projected GST turnover for April 2020 with GST turnover for April 2019
    o Projected GST turnover for the quarter starting April 2020 with GST turnover for the quarter starting April 2019
  • Only need to satisfy the fall in turnover once
  • If an employee is a long-term casual & has other permanent employment, they cannot nominate you
  • An employee cannot receive the JobKeeper Payment from more than one employer
  • If an employee is receiving an income support payment, they must notify Centrelink of their new income to avoid incurring a debt

Nominating eligible employees:

  • Must notify each eligible employee that you intend to nominate them
  • Employee must agree to be nominated by completing the JobKeeper employee nomination notice & returning it to you
  • Nomination notice retained with your records
  • Provide a copy to us
  • Cannot claim the JobKeeper Payment on behalf of an employee who has not returned their JobKeeper employee nomination notice by the end of April

Enrol for the JobKeeper Payment (from 20th April)

  • If you haven’t already done so, register your interest in JobKeeper updates
  • Check you & your employees meet eligibility guidelines
  • Continue to pay $1,500 to each eligible employee per JobKeeper fortnight (first fortnight ends 12th April)
  • Notify your employees you are intending to claim the JobKeeper Payment on
    their behalf
  • Send the JobKeeper employee nomination notice (refer above) to your nominated employees & return by the end of April
  • From 20th April, enrol with the ATO for the JobKeeper Payment using the Business Portal or through us – must be done by the end of April to claim payments for April
  • In online form, provide bank details & indicate if you are claiming an entitlement based on business participation (eg: a sole trader)
  • Specify estimated number of employees eligible for the first JobKeeper fortnight (30 March – 12 April) & the second JobKeeper fortnight (13 April – 26 April)

Confirmation of eligible employees (available from 4th May)

  • Apply to claim the JobKeeper payment through the Business Portal or through us
  • Ensure you have paid each eligible employee a minimum $1,500 per JobKeeper fortnight before tax
  • Identify eligible employees in the application form by:
    o Selecting employees prefilled from your STP pay reports, or
    o Manually entering employee details through the Business Portal, or
    o We submit a report on your behalf
  • Submit the confirmation & wait for confirmation email or SMS
  • Notify eligible employees you have nominated them
  • ATO will pay you the JobKeeper Payment
  • Each month:
    o Confirm your eligible employees have not changed
    o Provide information on your current & projected turnover
    o Reported in monthly JobKeeper Declaration report

Paying your eligible employees

  • Continue to pay your eligible employees at least $1,500 per fortnight in line with your existing pay cycle through your existing payroll solution.
  • For the first 2 fortnights, the ATO will accept the minimum payment of $1,500 per fortnight has been paid by you even if it has been paid late, provided it has been paid by the end of April
  • You must pay the minimum $1,500 per fortnight before tax to each eligible employee to claim the JobKeeper Payment for that fortnight

Tax consequences

  • JobKeeper payments are assessable income of the business
  • The JobKeeper Payment is not subject to GST

Superannuation

  • Superannuation continues to be payable on any wages actually earned
  • Superannuation is optional on any top-up payment to take gross wages up to $1,500 per fortnight

Other Notes:

  • An ineligible employee includes an employee who:
    o During the JobKeeper fortnight, was:
    ▪ In receipt of government parental leave or Dad & partner pay
    ▪ In receipt of a payment in accordance with workers compensation law for an individual’s total incapacity for work
    o Started work with you after 1st March 2020
    o Does not agree to be nominated
    o Does not return the JobKeeper employee nomination notice by the end of April
  • Employees who were stood down without pay or are on leave are still eligible
    employees as long as they were in your employment & met the eligibility
    criteria on 1st March 2020 & have not been terminated
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