IMPORTANT: Is your business registered for the Jobkeeper scheme? If so, this is a must-read.
Last week the Treasurer registered a legislative instrument bringing into effect the change that would see staff employed by 1 July now eligible for JobKeeper payments, an extension from the previous 1 March reference date.
This suggests that you may now have additional employees eligible for the scheme.
This will directly impact the following groups:
- A new employee that was hired after 1 March 2020 on full-time, part-time or fixed term contract;
- Long term casual employees (employed on a regular & systematic basis) that has ticked over the 12 month tenure mark as of 1 July 2020 - & not a permanent employee of any other employer;
- They have turned 18 year old within that period of 1 March – 1 July (employees 16 or 17 can also qualify if they were independent or not studying full time on 1 July 2020);
- Became an Australian resident under the Social Security Act 1991 between the period 1 March – 1 July 2020;
- Became an Australian resident for the purpose of the Income Tax Assessment Act 1936 & the holder of a Subclass 444 between the period 1 March – 1 July 2020;
The amendments apply from 3 August, the start of JobKeeper fortnight 10.
If you now have employees that are eligible under the new amendments, the one in all in rule still applies. This means that you as a registered employer of the Jobkeeper scheme must extend the offer to the employees & disburse the JobKeeper payment – employee nomination notice accordingly by Monday the 24th of August 2020.
If these changes impact you & our team manages your monthly Jobkeeper declarations to the ATO, be sure to update us next month when we request your turnover details for August.
August has three fortnights
Another major difference to the month of August in terms of the Jobkeeper scheme, is that it is the only month that contains 3 Jobkeeper fortnights.
This will directly impact those employers who pay their employees bi-monthly or on monthly payruns.
If you pay your employees monthly the normal minimum requirement would be $3000 gross a month covering the 2 fortnights, but for August you will need to pay a minimum of $4,500 to cover 3 fortnights.
If you pay your employees bi-monthly your first payment in August will cover the 2 fortnights so $3,000 gross & the second payment in August will only need to be a minimum of $1500 gross to meet the eligibility of $4,500 for the month of August.
It is super important this month to double-check your payroll calculations & the Jobkeeper fortnights to ensure you remain compliant with the minimum repayments for each employee.
If you’d like help reviewing these changes to ensure you remain compliant & take advantage of all eligible employees for the JobKeeper scheme contact us now. We’ll be sharing more information & points to consider over the coming weeks, so be sure to sign up for our newsletter!