Enrolment & Application for Job Keeper 
The ATO has finally released its own Job Keeper guidelines and more importantly, the details on the enrolment and application.
 
The enrolment and application could be prepared and submitted by CSCG as the tax agent or by the employer themselves through the ATO Business Portal.  Please note employers and their employees can only access the ATO Business Portal with a valid myGovID account.  Please refer to our previous emails regarding Transitioning from AUSkey to myGovID if you still do not have a valid myGovID account.
 
The Job Keeper enrolment and application includes the following:
 
  1. Work out the eligibility of the Employer;
  2. Identify the employer’s eligible employees and:
    1. Notify eligible employees that the employer will be intending to claim the Job Keeper Payment on their behalf and check they aren’t claiming Job Keeper payment through another employer or nominated through another business;
    2. Send the Job Keeper employee nomination notice to your nominated employee to complete and return by end of April in order to claim;
  3. Ensure the eligible employees have been paid correctly;
  4. Enrolment with the ATO from 20th April 2020 onwards (via ATO Online Services for Tax Agents, or ATO Business Portal for Employers themselves);
  5. Application with the ATO (to be done every month)
Please note that the Job Keeper payment also applies to clients that operate as sole traders or through trusts, partnerships, and companies and they don’t pay themselves wages.
 
Please contact your client relationship manager to discuss how Job Keeper might apply in your business’ circumstances.
 
The following are further details from the ATO on each of the steps listed above.
1. Work out if The Employer is eligible
The Employer will be eligible for the Job Keeper payment if:
  • on 1 March 2020, they carried on a business in Australia or were a not-for-profit organisation that operated in Australia
  • they employed at least one eligible employee on 1 March 2020 (there are also some special rules for self-employed that we will be providing further information on soon)
  • their eligible employees are currently employed by their business for the fortnights they start to claim for, and continue to claim for (including those who are stood down or re-hired)
  • their business has faced a
    • 30% fall in turnover (if their aggregated turnover is $1 billion or less)
    • 50% fall in turnover (if their aggregated turnover is more than $1 billion), or
    • 15% fall in turnover including donations and gifts (if they are an ACNC-registered charity and not a university or school).
  • they pay their eligible employees at least $1,500 before tax for the fortnights they start to claim for, and continue to claim for
  • they (or you on their behalf) successfully enrol for the Job Keeper scheme and apply for Job Keeper payments.
The Employer cannot enrol for the Job Keeper payment if:
  • the Major Bank Levy was imposed on the entity or a member of its consolidated group for any quarter before 1 March 2020
  • the entity is an Australian government agency (within the meaning of ITAA 1997)
  • the entity is a local governing body
  • the entity is wholly owned by an Australian government agency or local governing body
  • the entity is a sovereign entity
  • the entity is a company and a liquidator or provisional liquidator has been appointed
  • the entity is an individual and a trustee in bankruptcy has been appointed.
The Employer must employ eligible employees to receive Job Keeper payments. The Employer will receive Job Keeper payments for all eligible employees who were employed at 1 March 2020 and are currently employed by the business (including those who are stood down or re-hired).
Some business participants are also entitled to the Job Keeper payment. This may include self-employed and sole traders.
 
2. Identify The Employer’s eligible employees
The Employer is eligible for the Job Keeper payment in respect of employees if the employees:
  • are currently employed by the eligible employer (including those stood down or re-hired)
  • are either:
    • permanent full-time or part-time employees of The Employer (or another entity in The Employer’s wholly owned group) who were employees as at 1 March 2020
    • casually employed by The Employer (or another entity in The Employer’s wholly owned group) on a regular and systematic basis for at least 12 months as at 1 March 2020 and not a permanent employee of any other employer
  • were at least 16 years of age as at 1 March 2020
  • were an Australian resident as at 1 March 2020 within the meaning of the Social Security Act 1991, which requires that they reside in Australia, and are one of an Australian citizen, the holder of a permanent visa, a Protected Special Category Visa Holder. More information about these requirements can be found on the Services Australia website under (https://www.servicesaustralia.gov.au/individuals/topics/residence-descriptions/30391). The employee can also be an Australian tax resident who is a Special Category (Subclass 444) Visa Holder
  • were not in receipt of any of these payments during the Job Keeper fortnight
    • government parental leave or Dad and partner pay
    • a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work
  • have not agreed with any other employer to be nominated as an eligible employee for the Job Keeper payment.
  • complete the Job Keeper employee nomination notice.
3. Ensure The Employer correctly pays their eligible employees
The Employer should pay their eligible employees in line with their existing pay amounts and pay cycle and meet these requirements:
  • They should pay the minimum $1,500 before tax to each eligible employee each fortnight (starting with the fortnight 30 March – 12 April) to claim the Job  Keeper payment for that fortnight.
  • They need to continue to pay employees they are claiming for either:
    • every subsequent fortnight until 27 September 2020
    • until their employees stop being eligible or The Employer opts out.
  • For the first two fortnights (30 March – 12 April and 13 April – 26 April), we will accept the minimum $1,500 payment before tax has been paid for each fortnight even if it has been paid late, provided it is paid by the end of April. This means that they can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April.
  • If The Employer's eligible employees earn less than $1,500 per fortnight before tax, The Employer must pay them $1,500 per for each fortnight to claim the Job Keeper payment. This ‘top up’ of their salary or wages will ensure they remain eligible.
  • Employers cannot pay their employees less than $1,500 before tax per fortnight and keep the difference.
  • The Employer will not be eligible for the Job Keeper payment if they pay their nominated employee less than $1,500 before tax per fortnight.
  • If their eligible employees earn more than $1,500 per fortnight, they will only receive $1,500 for each eligible employee and they should pay any additional balance themselves.
  • If an employee has been stood down after 1 March, and The Employer re-engages them, they must pay their eligible employee at least $1,500 per fortnight before tax. They will only be eligible to claim for the fortnights after they have re-engaged their employee within the pay period.
  • If an employee was employed on 1 March 2020, subsequently ceased employment with their employer, and has since been re-engaged by them, the employee must receive, at a minimum, $1,500 per fortnight, before tax.
  • The Employer cannot claim the reimbursement for the Job Keeper payment for employees who were not paid the full amount during each Job Keeper payment period.
  • If The Employer's ordinary arrangement is to pay its employees less frequently than fortnightly, the payment can be allocated between fortnights in a reasonable manner. For example, if an employer’s ordinary arrangement is to pay an employee every four weeks, it will be reasonable if the employee is paid at least $3,000 for every four-week period.
  • The Job Keeper payment is a reimbursement from the ATO to The Employer and cannot be paid in advance.
All Job Keeper payments are assessable income of the business that is eligible to receive the payments. The normal rules for deductibility apply in respect of the amounts a business pays to its employees where those amounts are subsidised by the Job Keeper payment.
The Job Keeper payment is not subject to GST.
New rules are being introduced by the government with the intention to not require super guarantee to be paid on additional payments that are made to employees as a result of Job Keeper payments. We will update this information once legislation is in place.
 
4. Enrol on behalf of The Employer
  • Step 1 – Enrol for Job Keeper on The Employer’s behalf from 20 April 2020 using the ATO Online services for agents and authenticate with myGovID.
  • Step 2 – In the online form, provide The Employer's bank details and confirm if they are entitled to a business participation payment.
  • Step 3 – Specify the number of The Employer's employees who will be eligible for one period and the number eligible for two periods.
  • Step 4 – Get confirmation from The Employer that the employees they plan to nominate are eligible and that the employer has notified them and has their agreement.
  • Step 5 – Enrol on The Employer's behalf through ATO Online services for agents.
5. Apply on behalf of The Employer
  • Step 1 – Apply to claim the Job Keeper payment for The Employer by logging into the ATO Business Portal/Online services for agents between 4 May 2020 and 31 May 2020.
  • Step 2 – Ensure The Employer has paid their eligible employees and has received their Job Keeper employee nomination notices.
  • Step 3 – Identify their eligible employees by either
    • selecting employee details that are prefilled from their STP pay reports if they report payroll information through an STP enabled payroll solution
    • manually entering employee details in ATO Online services for agents or the Business Portal if they do not use an STP enabled payroll solution.
  • Step 4 – Submit a report on their behalf through ATO Online services for agents.
  • Step 5 – Ensure The Employer notifies their eligible employees of their nomination.
The ATO will pay The Employer the Job Keeper payment for all eligible employees after receiving their application.