Step by Step enrolment and operation
Further to our update provided yesterday, the ATO has outlined a step by step process for both the enrolment and operation of the JobKeeper program. See below for a summary:
Determine employer eligibility
You will need undertake projections on turnover to determine it meets the necessary decline to satisfy the turnover test. The decline is 30% for most businesses. If you want to apply for JobKeeper payments for the first fortnight of 30 March 2020 to 12 April 2020, you will need to show a decline in GST turnover for either:
- The month of March 2020 compared to March 2019;
- The month of April 2020 compared to April 2019;
- The June quarter 2020 compared to the June quarter 2019.
Determine employee eligibility
To recap, eligible employees:
- Are at least 16 years of age;
- Are currently employed by the eligible employer (including those stood down or re-hired);
- Were employed by the employer at 1 March 2020;
- Are full-time, part-time, or long-term casuals (a casual employed on a regular basis for longer than 12 months as at 1 March 2020);
- Are an Australian citizen, the holder of a permanent visa, a Protected Special Category
- Visa Holder, a non-protected Special Category Visa Holder who has been residing continually in Australia for 10 years or more, or a Special Category (Subclass 444) Visa Holder;
- Are not in receipt of a JobKeeper Payment from another employer.
Continue to pay your staff at least $1,500 to each eligible employee per JobKeeper fortnight
This does not mean you need to change your payroll process if paying staff on a monthly basis. However, if you have not paid staff since 30 March, you will need to ensure they have been paid for at least two fortnights (at $1,500 a fortnight) prior to 30 April, otherwise you will not be eligible to receive the first JobKeeper payments in early May.
Notify your eligible employees and send them the JobKeeper employee nomination notice
You will need to notify employees that you are intending to claim the JobKeeper payment on their behalf and check they aren’t claiming JobKeeper payment through another employer or have been nominated through another business. Once confirmed your employees to you complete the JobKeeper employee nomination notice before the end of April. This needs to be filed with your payroll and tax records but does not need to be submitted to the ATO.
Enrol for the JobKeeper payment with the ATO
From 20 April 2020, you can enrol with us for the JobKeeper payment using the Business Portal. You must do this by the end of April to claim JobKeeper payments for April. Traverse can also manage your enrolment for you using our tax agent portal.
If you are claiming JobKeeper as either a sole trader, for a beneficiary of a trust, or for director or shareholder, you will need to indicate you are claiming an entitlement based on business participation. This effectively means you are claiming JobKeeper for a non-employee, but is limited to a claim of only one person
Provide confirmation of eligible employees you will claim JobKeeper Payment for
Once enrolled you will need to identify your eligible employees in an application form via either ATO online services, the Business Portal or Traverse’s tax agent portal. This will be available from 4 May 2020 and will involve:
- selecting employee details that are prefilled from your STP pay reports if you report payroll information through an STP enabled payroll solution, or
- manually entering employee details in the Business Portal or via Traverse’s ATO online services portal if you do not use an STP enabled payroll solution.
Ongoing monthly reporting to the ATO
Each month, you will need to reconfirm that your reported eligible employees have not changed through ATO online services, the Business Portal or via Traverse’s tax agent portal. This will ensure you will continue to receive the JobKeeper payments from us. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.
We understand that this could be an overwhelming time for you, so please contact us if you would like us to assist you throughout this process.
To assist our clients, we are offering a fixed-fee service for the full management of the JobKeeper payment for you which is detailed below.