JobKeeper is a government scheme to help businesses continue paying their employees. Eligible employers will be reimbursed a fixed amount of $1500 per fortnight or $750 per week (before tax) for each eligible employee.
To be eligible for the JobKeeper payment, employers and their employees must meet a range of criteria. For eligibility criteria and all the details on the JobKeeper scheme visit the ATO website. https://www.ato.gov.au/General/JobKeeper-Payment/ For the latest information about ATO COVID-19 support for your business, visit ato.gov.au/coronavirus
Here is what we currently know to guide you through each step. Also see link for more information: https://www.ato.gov.au/general/jobkeeper-payment/In-detail/JobKeeper-guide—employers-reporting-through-STP/
Step 1: Enrol for the JobKeeper payment
Step 2: Identify and maintain your eligible employees – Send the JobKeeper employee nomination notice to all your eligible employees Note:Keep it on file and you may also provide a copy to your registered Tax or BAS agent if you are using one.
Step 3: Make a business monthly declaration Note: Each month, you must reconfirm the eligibility of your business and your reported eligible employees. You must also provide information as to your current and projected GST turnover. This is not a retest of your eligibility, but rather an indication of how your business is progressing under the JobKeeper Payment scheme. You or your registered tax or BAS agent can make the business monthly declaration.
Boosting cash flow for employers
Legislation has passed to provide temporary cash flow support to small and medium businesses and not-for-profit organisations that:
- employ staff
- have been affected by the economic downturn associated with COVID-19 (novel coronavirus).
Eligible businesses and not-for-profit (NFP) organisations will receive between $20,000 to $100,000 in cash flow boost amounts by lodging their activity statements up to the month or quarter of September 2020.
The cash flow boosts will be delivered as credits in the activity statement system and will generally be equivalent to the amount withheld from wages paid to employees for each monthly or quarterly period from March to June 2020. In practice, this means you keep the amounts you have withheld from payments for these periods, however, there are some exceptions.
An additional cash flow boost will be applied when activity statements for each monthly or quarterly period from June to September 2020 are lodged. These credits are equal to the total boosts credited for March to June 2020. They will be paid out in either two or four instalments depending on your reporting cycle.
You must lodge your activity statement to receive the cash flow boosts.
Refer Link for more information
Source: ATO website, ICB Newsletter Volume 11, Issue 10