Government stimulus during the Covid 19 crisis has been critical in keeping many businesses operating.
One of the most confusing stimulus measures has been Job Keeper (JK). We believe the confusion has been because
- the rules for eligibility for JK were regularly updated by Government.
- clarifying information was not widely circulated/ easy to find.
- the rules for JK were announced, shared and disseminated well before any legislation existed.
The Job Keeper payment is a subsidy paid at a rate of $1500/fortnight per eligible employee or “eligible business participant”. To clarify matters these are answers to the ‘frequently asked questions’ we have received and helped our clients with over the past few months.
Q. I’m now enrolled for Job Keeper. What now?
A. You need to report turnover on a monthly basis before the 14th of the following month. You also need to advise of any staff changes in the month.
Q. My April 2020 turnover was down 40% on the prior year but June 2020 should be comparable. Do I continue to receive Job Keeper?
A. Yes. Under the current rules you continue to receive for the period until 30/09/20 – even if your business has recovered. Once you are in the Job Keeper system you stay in.
Q. My April 2020 and May 2020 were comparable to 2019 but I expect June 2020 to be terrible. What do I do?
A. We can enrol your business for Job Keeper for June to 30/09/20. Please advise us if you are in this situation.
Q What is an “Eligible Business Participant” (EBP) for Job Keeper purposes?
A. A business enrolling for Job Keeper can nominate eligible employees plus one EBP.
- For sole traders – the sole trader or business owner is the EBP.
- For partnerships – one partner in the partnership is the EBP.
- For trusts – one adult beneficiary of the Trust is the EBP.
- For companies – one individual shareholder is the EBP.
Q. How is superannuation calculated for employees receiving Job Keeper?
A. If an employee earns less than $1500/fortnight gross, Job Keeper will be a pay increase to $1500/fortnight. eg. for an employee earning $600/week then Job Keeper is paid to the employer and then forwarded to the employee (a pay rise). Superannuation is payable on $600 /week rather than on the higher Job Keeper rate.
If an employee earns more than $1500/fortnight then the Job Keeper is paid to the employer and the employee receives the same wage. Superannuation is payable on the whole gross wage.
Q. Which employees are typically not eligible for Job Keeper?
i. casual employees employed less than 12 months at March 2020.
ii. casuals aged 16 or 17 who are financially dependent on their families
eg. living with parents.
iii. non citizens of Australia (exceptions for NZ citizens).
iv. employees who receive Job Keeper from another source.
Please contact us if you need help with Job Keeper regulation and compliance.