Jobkeeper/Jobseeker and Other Government COVID-19 Responses

[serfty]

Does anyone know how JobKeeper interact with CoINVEST (portable long service leave in VIC)?

If an employee goes on LSL and gets paid by CoINVEST and not by the employer, does that mean it fails the wage payment criteria of JobKeeper?

Interesting Question!

JobKeeper Payment | Australian Taxation Office

The JobKeeper Payment was a COVID support measure administered by the ATO.

www.ato.gov.au

I'd suggest anyone so affected would need to speak to a specialist in the subject - perhaps CoINVEST has some specific advice.

 

[lovetravellingoz]

For those that use Xero, they have now added the JobKeeper Payment top up

The instructions seem easy to follow.

TIP: If you want to pay the SGC on the $1500 you have to add a second SGC line. On the Payslip it will still just show the one SGC line, plus the normal Salary Sacrifice line if you also pay that.


In my case I also opted to just delete the April pay run that I had done and redo. The delete process lodges a report to the ATO for STP.
Due to the Salary Sacrifice being calculated as a % and the second SGC as a fixed amount it meant that the final pay was fractionally different in Net pay.

 

[Pushka]

For those that use Xero, they have now added the JobKeeper Payment top up

The instructions seem easy to follow.

TIP: If you want to pay the SGC on the $1500 you have to add a second SGC line. On the Payslip in will still just show the one SGC line, plus the normal Salary Sacrifice line if you also pay that.


In my case I also opted to just delete the April pay run that I had done and redo. The delete process lodges a report to the ATO for STP.
Due to the Salary Sacrifice being calculated as a % and the second SGC as a fixed amount it meant that the final pay was fractionally different in Net pay.

Seems like each software is doing it differently. We are also paying regular salary even though hours worked is well under. The only difference in our MYOB payroll is entering the line JOBKEEPER...... and an entry of .01 cents (so it gets entered as an actual transaction, which it won't if left as .00 cents), enter the salary as normal (and any SS) and the super is calculated as normal, then adding .01 to tax deducted so that the pay amount remains the same. At least I think that's right?

Like you I simply deleted the pay and re-entered because of course, one pay was made on 30 March. And we haven't finalised the BAS3 yet as the ATO will be paying us everything back with their initial Stimulus package (repayment of PAYG).

 

[serfty]

... And we haven't finalised the BAS3 yet as the ATO will be paying us everything back with their initial Stimulus package (repayment of PAYG).

The the ATO BP was showing the 3rd Quarter BAS as being due 26th May. We normally do make use of the two week extension offerred for online submissions which would have been May 12th.

I'm guessing the 4week extension is another of the COVID-19 government initiatives.

We submitted the "BAS3" on Friday and the payment due date is May 26th.

 

[Freq Flier 2013]

I hope xero sorts it soon then .I already have 3 pay runs I'm going to have to redo.

You do not need to re do anything. There will be a work around where you lodge a $0 pay with the right allowance code.

 

[Pushka]

The the ATO BP was showing the 3rd Quarter BAS as being due 26th May. We normally do make use of the two week extension offerred for online submissions which would have been May 12th.

I'm guessing the 4week extension is another of the COVID-19 government initiatives.

We submitted the "BAS3" on Friday and the payment due date is May 26th.

That date shift hasn't been mentioned in the media I dont think, but that date is the same as ours. Gives the ATO to implement the "refund" of the PAYG payments that were part of the first Covid package.

 

[serfty]

That date shift hasn't been mentioned in the media I dont think, but that date is the same as ours. Gives the ATO to implement the "refund" of the PAYG payments that were part of the first Covid package.

I first noticed the 26th May date a month ago and it was available for both of the two entities we deal with.

So it's been around from approx. the time the "refund" (AKA "Boosting cash flow for employers") scheme.

There is also a lot here that I was not aware of:

ATO releases ‘one stop shop’ for essential tax and super info on COVID-19 stimulus measures

The Australian Taxation Office (ATO) has today updated its website with essential information about tax and superannuation changes that have now become law following the passage of the Government’s Economic Support Package through the Parliament. The site is ato.gov.au/coronavirus.

www.ato.gov.au

 

[Pushka]

I first noticed the 26th May date a month ago and it was available for their of the two entities we deal with.

So it's been around from the time the "refund" AKA "Boosting cash flow for employers" scheme.

There a lot here that I was not aware of:

ATO releases ‘one stop shop’ for essential tax and super info on COVID-19 stimulus measures

The Australian Taxation Office (ATO) has today updated its website with essential information about tax and superannuation changes that have now become law following the passage of the Government’s Economic Support Package through the Parliament. The site is ato.gov.au/coronavirus.

www.ato.gov.au

Ah. That explains why I didn't need to adjust expected Profit for this financial year. It automatically zeroed out. Thanks!

 

[Denali]

In my emails overnight

There was also info on Casuals and Jobkeeper but dont know if thats an interest to share here, let me know

 

[Pushka]

In my emails overnight

There was also info on Casuals and Jobkeeper but dont know if thats an interest to share here, let me know

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Thankyou. This is in line with what MYOB are saying. We pay more so no need to change much other than notify of the start date. I contacted the accountant yesterday and he was saying we needed pay the $1500 as one entry then anything additional is to be entered in payroll as a top up. Emailed him back and suggested that top up code is only used when topping UP to $1500 and not when paying over $1500 gross. He said ok stick with MYOB suggestion (he has online access to our file) but that he uses xero and that’s what they were saying. I don’t think so...

 

[lovetravellingoz]

but that he uses xero and that’s what they were saying. I don’t think so...

In Xero the Jobkeeper topup is separate line and is only for that. Your other pay (if any) is as per usual (ie less the Jobkeeper amount).

 

[Pushka]

In Xero the Jobkeeper topup is separate line and is only for that. Your other pay (if any) is as per usual (ie less the Jobkeeper amount).

I thought exactly the same thing. I think my accountant got caught a bit short. A tad worrying. Given he said he's been busy advising others how to apply For it but I'd already got things sorted.

 

[Freq Flier 2013]

I thought exactly the same thing. I think my accountant got caught a bit short. A tad worrying. Given he said he's been busy advising others how to apply For it but I'd already got things sorted.

Your accountant is not correct. Process pay as usual and only top up as required to get to the $1,500. Hope it helps.

 

[Pushka]

Your accountant is not correct. Process pay as usual and only top up as required to get to the $1,500. Hope it helps.

Yep. Thankyou for confirming. It's good to have another confirmation. In another life I'd get a new accountant. Heaven help those he is setting this up for!

 

[Timtammi]

Thanks everyone for your posts. I'm sitting here setting up these jobkeeper pay codes and allowance codes in our payroll system which is Pronto Xi.
Seems all the same as everyone else. We too are paying everyone over the $1500 a fortnight (with some on paid leave) and so no topup to worry about, just the start codes as far as I can tell.
we havent done the actual application yet but think we will qualify for the month of April vs April 2019 so are just waiting until closer to the end of the month to be sure and then will apply.
Only thing I'm a bit unsure about is that pays are already done for most of April, next fortnight pay I can do a day early on April 30 and include the start pay code from March 30, will that work?

 

[Timtammi]

Also with regards to directors vs employees. My understanding is that any/all directors that are paid via wages with PAYGW ie are employees can qualify for jobkeeper if they are eligible/company is eligible. So for our small busines that is me and my husband who are directors that are employees as well as all the rest of our eligible employees.

 

[Pushka]

Also with regards to directors vs employees. My understanding is that any/all directors that are paid via wages with PAYGW ie are employees can qualify for jobkeeper if they are eligible/company is eligible. So for our small busines that is me and my husband who are directors that are employees as well as all the rest of our eligible employees.

As long as you both are being employed (ie Payment summaries at eofy; have tax taken out and sent to ATO monthly through STP etc) then you can both qualify for JobKeeper.

 

[CaptJCool]

Also with regards to directors vs employees. My understanding is that any/all directors that are paid via wages with PAYGW ie are employees can qualify for jobkeeper if they are eligible/company is eligible. So for our small busines that is me and my husband who are directors that are employees as well as all the rest of our eligible employees.

That sounds right although the rules seem muddier than that ...

Coronavirus Economic Response Package (Payments and Benefits) Rules 2020

So if there’s been a history of regular PAYG-W for the person as an employee which the ATO would have IN The STP records, then sounds good to go
If there’s no history of regular (Eg fortnightly, monthly) PAYG-W for directors or partners then only one will be eligible.

Post automatically merged: Apr 22, 2020

There’s also been latitude given to tax agents

Support for tax professionals | Australian Taxation Office

Find out about the range of practical support options we offer you and your clients.

www.ato.gov.au

 

[Timtammi]

Yes to salary, STP, PAYGW and EOFY payment summaries for both directors so good to go I think! Thanks.

 

[CaptJCool]

Yes to salary, STP, PAYGW and EOFY payment summaries for both directors so good to go I think! Thanks.

I have a friend running a cafe via a corporate trustee who doesn’t do this so there’s no JobKeeper for him and casuals were <12 months . in the end, it’s JobSeeker & access to super (being 3 years from preservation age)