JobKeeper Law Passed and Rule Released
The JobKeeper law was passed on 8 April 2020, without amendments. This means the information already published by Treasury can now be relied upon, and the ATO has released details of the administration of the JobKeeper payment.
There are still more details to come and some aspects of the program yet to be clarified. Visit the Treasury JobKeeper webpage for details and download the JobKeeper payment – frequently asked questions document.
Eligibility for the JobKeeper payment depends on a range of criteria. The ATO JobKeeper webpage has been updated with full details and relevant information for employers, employees and tax professionals.
The Process for Employers
- Register with the ATO.
- Read ATO information to confirm eligibility of the business to receive JobKeeper on behalf of employees.
- Read ATO information to confirm eligibility of employees. Note that a business may be eligible but not necessarily all employees will be eligible. Each must meet relevant criteria.
- Pay employees.
- If employee’s usual pay is less than $1,500 per fortnight, employer should make a top-up payment to the value of $1,500 gross, from 30 March 2020.
- Notify your eligible employees that you intend to claim the JobKeeper on their behalf.
- Eligible employees must complete the JobKeeper employee nomination notice and return to the employer by 30 April. The employer must keep this form on file for five years to document agreement by the employee to nominate this employer as the primary employer for JobKeeper purposes. (Employees may only receive JobKeeper from one employer).
- From 20 April, employers can enrol in JobKeeper using their business portal. Tax professionals can enrol on their behalf using ATO online services for agents.
- The ATO will reimburse the business monthly in arrears.
- Payroll and accounting software apps are being upgraded now to allow JobKeeper to be accurately processed. In the meantime, pay employees as usual, and the software companies will advise you how to make adjustments if necessary, for amounts already paid.
The Process for Sole Traders and Others
There will be a different process for sole traders, partners, trust beneficiaries, shareholders or company directors. The ATO has not yet released administrative detail for these recipients.