The JobKeeper Extension Payment functions have been released into GovReports products. There are several changes to the scheme that employers need to be aware of, including changed eligibility tests.
Some businesses that currently receive JobKeeper will no longer be eligible after 28 September, and other will continue to be eligible for the new rates of JobKeeper. Employers can still enter the system now if they meet the eligibility criteria, even if they have not qualified in earlier periods.
The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021 for eligible businesses with eligible employees and business participants.
The extension periods are:
- Extension 1: from 28 September 2020 to 3 January 2021
- Extension 2: from 4 January 2021 to 28 March 2021
JobKeeper eligibility was initially allowed based on projected decline in turnover figures. However, to continue to receive JobKeeper payments from 28 September, a business must demonstrate a decline in turnover based on the comparison of actual figures from the current period to the same previous period, based on the same BAS reporting method the business ordinarily uses.
Employers are eligible for the JobKeeper extension payment if all of the following apply:
- At 1 March 2020 the business operated with an ABN and employed at least one eligible employee.
- The eligible employees are currently employed by the business, (including those who have been stood down).
- The business demonstrates actual or projected 30% fall in turnover (for business with turnover < $1 billion)
- The business demonstrates actual or projected 50% fall in turnover (for business with turnover > $1 billion).
- The entity demonstrates actual or projected 15% fall in turnover (for ACNC registered charities).
- The business is not listed as ineligible.
There are many situations where a business may need to use an alternative turnover test to verify eligibility for the JobKeeper extension. These tests are for businesses that do not have an appropriate comparison period in 2019.
For more information on your specific JobKeeper extension eligibility and calculating turnover, please contact your tax practitioner for guidance.
New Rates Apply from 28 September
The ATO has introduced two tiers of payment rates for eligible employees and business participants.
- Tier 1 – eligible employees and business participants who worked 80 hours or more in the four weeks of the reference period.
- Tier 2 – eligible employees and business participants who worked less than 80 hours in the four weeks of the reference period.
From 28 September 2020, you must do all of the following:
- work out if your business has met the relevant actual decline in turnover percentage
- work out if the tier 1 or tier 2 rate applies to each of your eligible employees and/or eligible business participants and/or eligible religious practitioners
- notify the ATO and your eligible employees and/or business participants and/or religious practitioners what payment rate applies to them
- during 28 September 2020 to 3 January 2021 – ensure your eligible employees are paid at least
- $1,200 per fortnight for tier 1 employees
- $750 per fortnight for tier 2 employees
- during 4 January 2021 to 28 March 2021 – ensure your eligible employees are paid at least
- $1,000 per fortnight for tier 1 employees
- $650 per fortnight for tier 2 employees.
What Doesn’t Change
- You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
- You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
- You don’t need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to holding an ABN, and declaring assessable income and supplies.
What you need to do in GovReports for JobKeeper Payments
- If you were previously eligible for JobKeeper payments but will not be eligible for JobKeeper Extension, you need to notify the ATO from GovReports applications when lodging STP for the period including 27 September 2020 with the addition of Jobkeeper Finish for each eligible employee who is receiving JobKeeper within the Allowance section of the payrun.
- If you or your employees were previously not eligible for part or whole of Jobkeeper but will be eligible for Jobkeeper Extension, you need follow the process of JobKeeper enrolment and reporting to the ATO. In GovReports, notify the ATO of each eligible Tier 1 or Tier 2 employees and add JobKeeper Start from the beginning of the eligible period of payment.
To notify the ATO of employees who are eligible for JobKeeper Extension payments, you need to identify and add eligible employees for JobKeeper payments Tier 1 or Tier 2 under allowances section. If you were previously not on JobKeeper payment, but meet the eligibility criteria for JobKeeper Extension, you will need to also add Jobkeeper Start date on payrun within eligible pay period.
JobKeeper Payment Tiers in GovReports
JobKeeper Payment Tiers in IAM
For more information on JobKeeper eligibility and your specific situation, please contact your BAS or tax agent or visit the ATO website for details.
Please note that GovReports cannot legally advise about eligibility for JobKeeper extension payments, but we are happy to help with how you can process JobKeeper within GovReports products.