Jobkeeper/Jobseeker and Other Government COVID-19 Responses

[lovetravellingoz]

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.

Yes.

Plus no employee will get the Jobkeeper allocated if they did not meet the employee qualification rules. So you cannot now add Directors or shareholders as employees if they were not already, just as you cannot now add any new employee and get Jobkeeper for them.

 

[CaptJCool]

Lucky we are not talking Qantas

Union complains Qantas is using $1,500 jobkeeper payments to pay penalty rates

Airline says the move is lawful but union says it increases the benefit of the wage subsidy captured by the company

www.theguardian.com

They’re allowed to based on my reading of

“• amounts paid by the employer to the employee in the fortnight by way of salary, wages, commission, bonus or allowances (less PAYG withholding) – generally, this means the employee’s income before tax;”

 

[equus]

Not JobKeeper, but the Small Business Cashflow boost has been processed. Monthly PAYGW lodger, and the credit for the Match lodgement (at 3x amount withheld) has hit the integrated account. EFT refund down as processed, with an effective date of tomorrow, so looking good (refund amount after the BAS3 GST amount has been covered as well).

 

[Pushka]

Yes, I noticed this too when I logged in today. I still have around $800 to pay from GST but much better than a tax bill over $14,000. I have no idea how to log the GST collected/paid plus PAYG "less" the cashflow boost into MYOB and it's no good asking my accountant coz he will get it wrong.

Not JobKeeper, but the Small Business Cashflow boost has been processed. Monthly PAYGW lodger, and the credit for the Match lodgement (at 3x amount withheld) has hit the integrated account. EFT refund down as processed, with an effective date of tomorrow, so looking good (refund amount after the BAS3 GST amount has been covered as well).

 

[equus]

It's just a net off. You have paid the full GST amount, and received (tax free) the full Cashflow Boost. Even the most dense accountant should be able to get the journals for that correct. If they can't, then definitely the time for a new accountant.

 

[serfty]

Yes, I noticed this too when I logged in today. I still have around $800 to pay from GST but much better than a tax bill over $14,000. I have no idea how to log the GST collected/paid plus PAYG "less" the cashflow boost into MYOB and it's no good asking my accountant coz he will get it wrong.

MYOB is your best bet for answer - other than that, I guess you are considering whether you are getting any value out of your accountant.

 

[serfty]

Not JobKeeper, but the Small Business Cashflow boost has been processed. Monthly PAYGW lodger, and the credit for the Match lodgement (at 3x amount withheld) has hit the integrated account. ...

Yes, I noticed this too when I logged in today. I still have around $800 to pay from GST but much better than a tax bill over $14,000....

I presume you both were on monthly BAS.

We are on ¼'ly and no such credit yet.

 

[Pushka]

I presume you both were on monthly BAS.

We are on ¼'ly and no such credit yet.

We are on quarterly BAS. Maybe it takes a while to process through. I submitted about 2 weeks ago.

 

[serfty]

We are on quarterly BAS. Maybe it takes a while to process through. I submitted about 2 weeks ago.

OK, I must have misunderstood the 2nd para of your post on Sunday.

Jobkeeper/Jobseeker and Other Government COVID-19 Responses

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...

www.australianfrequentflyer.com.au

(Although you did mention BAS3 so that does imply quarterly)

 

[equus]

I am not sure technically what we are on. I suspect in theory it is quarterly BAS, as we only submit BAS itself for GST on a quarterly basis, but submit and pay PAYGW (Installment Activity Statement) monthly. I think the whole communication is a bit inaccurate, as the payment is all about PAYGW amounts and frequency, which is not technically BAS - as the frequencies can be split, as is the case for us.

I also submitted a couple of weeks ago, so it may well just be time to process. It may also be the monthly nature of the PAYGW, or even just the fact that they are doing monthly first, as presumably the reason for having monthly PAYGW Installment activity rather than quarterly is the amounts involved - i.e. they want the money earlier when there is more of it. It could be that these are being processed earlier due to a perception that there could be a greater degree of exposure.

 

[Pushka]

OK, I must have misunderstood your post on Sunday.

Jobkeeper/Jobseeker and Other Government COVID-19 Responses

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...

www.australianfrequentflyer.com.au

(Although you did mention BAS3)

Yes. BAS 3. Lodged 14 April. Statement appears like this. ( I had to do an amendment on 21st to BAS. )

I just reread my post back then and see what you mean - by 'finalised' I meant pay the tax bill as we were expecting a refund as a result of Covid package and didnt want to pay then receive money back. The 26 May date due meant that was fine. Having said that I learnt of a Tax Invoice that had been created in my absence and not entered into MYOB so discovered this after I lodged on 14th and so did an amendment. The nett result is that after I receive the payment due this week from Covid ATO I need to pay another $700 by 26 May.

Just checked and ATO has deposited the Covid funds.

We are on monthly Salary Tax PAYG and quarterly BAS.

 

[serfty]

I am not sure technically what we are on. I suspect in theory it is quarterly BAS, as we only submit BAS itself for GST on a quarterly basis, but submit and pay PAYGW (Installment Activity Statement) monthly. I think the whole communication is a bit inaccurate, as the payment is all about PAYGW amounts and frequency, which is not technically BAS - as the frequencies can be split, as is the case for us.

"Boosting cash flow for employers" relates to any PAYGW submitted with your BAS, whether quarterly or monthly.

The STP is a monthly thing to be filled out every time someone is paid. In the end it is used to obviate the need for annual summaries (nee Group certificates) and has relevance to COVID-19 based relief if JobKeeper is in play.

 

[Denali]

"Boosting cash flow for employers" relates to any PAYGW submitted with your BAS, whether quarterly or monthly.

The STP is a monthly thing replacing annual summaries (nee Group certificates) and has relevance to COVID-19 based relief if JobKeeper is in play.

STP is "every pay event". Most software would have it as one of their steps in payroll processing. We have weekly, fortnightly and monthly payroll - so every time a payroll is processed, STP is triggered. Micro employers (less than 4 employees) are allowed quarterly reporting.

Expansion of STP (Phase 2) | Australian Taxation Office

Your digital service provider (DSP) will support your transition to STP reporting.

www.ato.gov.au

.

 

[equus]

"Boosting cash flow for employers" relates to any PAYGW submitted with your BAS, whether quarterly or monthly

Thing is, you can lodge a BAS (which includes GST and PAYGW) quarterly, and also lodge on the other months (monthly) an Installment Activity Statement which only covers PAYGW. @Pushka is in the same siituation as us.

The "Boosting cash flow" does indeed relate to any PAYGW, but not strictly only on a BAS - it is any activity statement. We are on quarterly BAS lodgement for GST, but were paid 3 x the PAYGW amount (as for monthly lodgers) as we are on monthly installment activity.

 

[Mogul]

BAS submitted yesterday with PAYG refund applied automatically when lodged back dated to cover all PAYG paid since January. Our PAYG is paid monthly.

 

[CaptJCool]

Havin worked in the ATO, I COULD suggest this

Originally each tax was quite separately handled until the early 90s when PAYE, PPS & Sales Tax was hauled together but the advent of GST started the process of aggregating liabilities onto the one statement and got rid of sales tax & Provisional tax

That didn’t change the underlying legislative requirements for each tax nor the role-based accounting structure which still today reflects PAYG-W (employee tax instalment deductions) & PAYG-I (investor income tax obligations plus for people that earn through their own ABN business ) and within Govt accounts are separate heads of revenue so forms are set up based on these splits.

So registration requirements, reporting cycles, reporting periods based on threshold amounts, lodgement & payment due dates, SMS text reminders, Auto grace periods, debt recovery follow-up, interest penalties are all based on the legislation of the specific tax hence the separate provisions for monthly & quarterly cycles. It’s a bit of a maze but shows how cobbled together legislation across decades can be (noting income tax was state-based until WWII)

What it did mean was when the employer Cashflow boost showed up, it would be a relatively straightforward coding job to enable a physical refund as long as BSBs were known....
As for JobKeeper, that’s quite a more complicated structure as info for each employee is stored in the system and needs be reconciled at a very detailed low-level.

 

[lovetravellingoz]

Note at least with Xero that Quarterly pays do not work for Jobkeeper. You need to change to weekly, fortnightly or monthly pays.

 

[milehighclub]

Lucky we are not talking Qantas

Union complains Qantas is using $1,500 jobkeeper payments to pay penalty rates

Airline says the move is lawful but union says it increases the benefit of the wage subsidy captured by the company

www.theguardian.com

They’re allowed to based on my reading of

“• amounts paid by the employer to the employee in the fortnight by way of salary, wages, commission, bonus or allowances (less PAYG withholding) – generally, this means the employee’s income before tax;”

One of the problems was that International crew are paid a cash allowance overseas. This is recorded as a payment and a deduction on the same payslip for recording purposes only. It comes up in the gross, but is deducted and not part of the taxable gross. The ATO has made the decision that these cannot be used for Job Keeper and the company is going to back pay International crew.

In regards to extra hours done before 31st March (and for some crew this is for work done as early as Feb because of how some of our extra payment works), there is still a disagreement between the 2 parties, but I also read it that it is based on the date of the payment, not when it was earned.

 

[CaptJCool]

One of the problems was that International crew are paid a cash allowance overseas. This is recorded as a payment and a deduction on the same payslip for recording purposes only. It comes up in the gross, but is deducted and not part of the taxable gross. The ATO has made the decision that these cannot be used for Job Keeper and the company is going to back pay International crew.

In regards to extra hours done before 31st March (and for some crew this is for work done as early as Feb because of how some of our extra payment works), there is still a disagreement between the 2 parties, but I also read it that it is based on the date of the payment, not when it was earned.

And quite rightly so, as it’s akin to the APS Travel allowances that are definitely not taxable nor part of ordinary earnings.

Blimey a bit rich of QF to argue because it paid arrears late that it can then proceed to “count” them as part of JobKeeper...

 

[serfty]

relates to any PAYGW submitted with your BAS, whether quarterly or monthly.

BAS submitted yesterday with PAYG refund applied automatically when lodged back dated to cover all PAYG paid since January. Our PAYG is paid monthly.

They keep updating their web pages to include additional criteria. It now appears from reading that the "Boosting cash flow for employers" ATO credit would not be available for businesses using deferred lodgements until they either submit their 2018–19 tax return or their 2018–19 annual GST return. A quarterly/monthly BAS subsequent to June '18 is seemingly not sufficient.

Most businesses that use Tax Agents/Accountants will have had their lodgement date for these deferred until 15th May. Of course there should be nothing to prevent an earlier submission if they are keen on the credit.

Boosting cash flow for employers | Australian Taxation Office

We provide cash flow boosts to eligible employers to support them during the economic downturn due to COVID-19.

www.ato.gov.au

Temporary cash flow boosts | Australian Taxation Office

What you need to know about temporary cash flow boosts during the economic downturn associated with COVID-19.

www.ato.gov.au

Here's an example they provide:

Hieu uses a tax agent to prepare his business income tax and annual GST returns. He did not lodge his 2018–19 tax return or annual GST return by 12 March 2020 because his due date for these lodgments is 15 May 2020.

Hieu remains eligible to receive the cash flow boost as long as he lodges his 2018–19 tax return or 2018–19 annual GST return before his due date.

If Hieu lodges his March 2020 activity statement before either of the 2018–19 returns are lodged, the cash flow boost will be credited when the first return is lodged.

Alternatively, Hieu can provide us with supporting documents that assist us to determine that he is eligible.