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You need to nominate your employees and start the application process now

It’s now time for you to work through the steps of applying for the Jobkeeper Payments.

The first thing you need to do is work out if you are eligible for the payments and if you meet the criteria that the ATO have set out. If you do meet the criteria and are going to apply you must first notify each eligible employee that you intend to nominate them as eligible employees for the payments.

From the 20th April 2020 you will need to enroll for JobKeeper through the Business Portal and authenticate with MyGov and specify the number of employees you plan to nominate payments for and have them sign the Nomination Form. We can assist you with this, if you need help.

From the 4th May 2020 you will need to apply to claim the JobKeeper payments so you can receive the two lots of $1500 payments for each employee for April. You need to do this by identifying the eligible employees by selecting their details from their Single Touch Payroll reports or you will need to manually enter their details into the Business portal.

We have summarised the important steps below that you will need to take over the next few weeks to participate in the Jobkeeper Scheme.

We have had many clients ask us for help with the application process and we can certainly do this on your behalf. Our fees for this service will hopefully only be in the range $200 – $400, depending on your business details and number of employees.

Is your business eligible:

You need to work out if you meet the following criteria to qualify for the payments.

Your business will be eligible for JobKeeper payments from the start if:

1.  Your turnover has reduced by 30% in the:

     a) the month of March 2020 in comparison to March 2019

     b) April 2020 in comparison to April 2019 or

     c) the April – June 2020 quarter in comparison to the April – June 2020 quarter.

2. Or if significant business changes have occurred, that the above options are not reasonable or applicable, another methodology maybe an option (ie you are a new business, so your average monthly turnover will be used), which you will be required  to complete a private determination. 

Nominating Your Employees:

You need to notify each eligible employee that you intend to nominate them as eligible employees under the JobKeeper scheme. 

They must be nominated by you, and complete the Jobkeeper Employee Nomination Notice. (See link Below) This form needs to be filled out by your employee as soon as possible and returned to you no later than the 30th April 2020.

NOTE: If your tax Agent is applying on your behalf you must give the forms to them to keep on file for five years.

Click Here for the Nomination Form:  JobKeeper Employee Nomination Notice 

Sole Traders & Other Entities:

Sole traders, Partnerships, Trust and Companies can register ONE eligible business owner or participant who is actively engaged in the operation of the business. 

The entity, not the eligible business participant, receives the JobKeeper payment. The exception is a sole trader, who is both the business entity and an eligible business participant, and so receives the JobKeeper payment themselves.

 Eligible Business Participant:

Your non-employee individual is an eligible business participant of your entity for the fortnight if they meet all of the following:

• They are an individual not employed by your entity.
• They are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).
• They are one of the following (at 1 March 2020 and for the fortnight you are claiming)

• a sole trader
• a partner in the partnership
• an adult beneficiary of the trust
• a shareholder or director in the company.

 Eligible Business Entities:

• on 1 March 2020, it carried on a business in Australia
• it satisfies the fall in turnover test for the relevant period
• it satisfied certain conditions as at 12 March 2020, being:
• it had an ABN on 12 March 2020, and
• it had lodged, on or before 12 March 2020, at least one of
• a 2018–19 income tax return showing that it had an amount included in its assessable income in relation to it carrying on a business, or
• an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that it made a taxable, GST-free or input-taxed sale.

Enrolment from 20th April 2020: 

Step 1 – Enrol for JobKeeper from 20 April 2020 using the Business Portal and authenticate with myGovID.

To qualify for the 2 lots of fortnightly $1500 incentive that are up to 26 April, the employer needs to have election done by this date.

 Step 2 – In the online form, provide your bank details and confirm if you are entitled to a business participation payment.

Step 3 – Specify the number of employees who will be eligible for the first fortnight (30/03 – 12/04) and the second fortnight (13/04 -26/04)

Step 4 – Get confirmation that the employees you plan to nominate are eligible and that they have notified you of their agreement.

Application for payment from 4th May 2020:

Step 1 – Apply to claim the JobKeeper payment for your employees, by logging into the ATO Business Portal between 4 May 2020 and 31 May 2020.  

Step 2 – Ensure you have paid your eligible employees a minimum of $1,500 per jobkeeper fortnight before tax and have received the JobKeeper employee nomination notices.

Step 3 – Identify the eligible employees by either selecting employee details that are prefilled from their STP pay reports if you report payroll information through an STP enabled payroll solution or manually entering employee details in ATO Online services or the Business Portal if you do not use an STP enabled payroll solution.

Step 4 – Submit the confirmation of your eligible employees online and wait for your confirmation email or SMS showing it was received.

Step 5 – Ensure you notify your eligible employees of their nomination.

Step 6 –  We will then pay the JobKeeper payment for all eligible employees after receiving your application.

Step 7 –  Each Month, you will need to reconfirm that your reported eligible employees have not changed through ATO online services, the Business Portal.  This will ensure you will continue to receive the Jobkeeper payments from the ATO.  You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly Jobkeeper declaration report.

Step 8 – If your eligible employees change or leave your employment, you will need to notify the ATO through your monthly Jobkeeper declaration report.

Remember we are here if you need help you through this process. If you have any queries please don’t hesitate to contact our office on 5366 1000 and press 1 for Account(able).