JobKeeper 2.0 - What you need to know!
JobKeeper 2.0 is now active – here are the steps needed now
Assess your eligibility – have you had a decline in turnover?
Assess the standard hours for your eligible employees and business participant;
Enrol if new to JobKeeper and continue if already enrolled for the original JobKeeper;
Inform eligible employees of changes in writing, if applicable.
Reviewing eligibility
The first extension of JobKeeper covers the period 28 September, 2020 to 3 January, 2021. Generally to be eligible there must be a 30% reduction in the actual GST turnover in the September, 2020 quarter relative to the comparable period (generally the September, 2019 quarter).
The method that you are registered for GST will need to be the method of how you compare the September quarter GST turnover. If you are not required to be registered for GST you still have the option of choosing either the cash or accruals method for calculating your turnover.
There are now 2 JobKeeper payment rates
Employees and business participants who were actively engaged in the business for 20 hours or more per week on average will be eligible for the tier 1 rate of $1,200 per fortnight up until 3 January, 2021, reducing to $1,000 per fortnight for extension 2, commencing 4 January, 2021 to 28 March, 2021 (if applicable).
Employees and business participants who worked under 20 hours will be eligible for the tier 2 rate of $750 per fortnight up until 3 January, 2021, reducing to $650 per fortnight for extension 2, commencing 4 January, 2021 to 28 March, 2021 (if applicable).
Testing requirements for Tier 1 and Tier 2
Your employee will satisfy the 80-hour threshold (the 20 hours or more per week on average mentioned above) if, in their 28-day reference period, the total of the following is 80 hours or more:
Actual hours they worked;
Hours they were on paid leave;
Hours they were paid for absence on a public holiday.
If your eligible employee satisfies the 80-hour threshold, you can claim the tier 1 (higher) payment rate for them. If they do not meet the 80-hour threshold, you can only claim the tier 2 (lower) payment rate for them.
The 28-day reference period can either be the 28 days finishing on the last day of the pay cycle that ended before 1 March, 2020 or the 28 days finishing on the last day of the pay cycle that ended before 1 July, 2020. If the pre-March or the pre-July reference periods are not suitable for some of your employees you could consider an alternative reference period – for example if an employee has taken unpaid personal leave that is not representative of their typical hours.
Other important notes
Ensure top up payments cease should you no longer be eligible for JobKeeper payments;
Check what eligible employees you have as at 1 July, 2020;
Remember that any sales of assets (including any trade in of assets) are included in GST turnover;
Ensure adequate records are kept for all claims – the ATO can deny claims should record keeping requirements not be met.
Key Dates
28 September, 2020 – JobKeeper 2.0 starts
30 September, 2020 – Last date to enrol for JobKeeper 1.0
1 October, 2020 – 14 October, 2020 – Monthly reporting open for September JobKeeper version 1.0
31 October, 2020 – Last day to pay eligible employees (including any top up payments if required) for JobKeeper Fortnights ending 11 October, 2020 and 25 October, 2020
1 November, 2020 - 14 November, 2020 – Monthly reporting open for JobKeeper 2.0 – will also need to report to the ATO of tiers plus provide details of turnover
https://treasury.gov.au/sites/default/files/2020-08/Fact_sheet-JobKeeper_Payment_extension_1.pdf
https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-extension-announcement/#JobKeeperextension1
If you need further assistance, please be in contact with our office on (08) 8523 0999 to discuss your matter with an accountant.
Regards,
Milanese & Co Accountants