The JobKeeper extension program is commencing from 28/9/20. If you are already enrolled in the JobKeeper program, there is no need to re-enrol for the extension period. Please contact your C&J advisor if you have any questions regarding the JobKeeper System. You can see our other news itemshere.
Eligibility – Decline in Turnover Test
As per our previous correspondence, there is a requirement to pass an additional eligibility test in order to qualify for the first and second extension periods. The updated turnover test is as follows:
To qualify for the first extension period your actual GST turnover for the quarter ended 30 September 2020 must be down 30% when compared to the September 2019 quarter.
The ATO have confirmed that the turnover will be based on the GST turnover of the business, effectively the figure reported at G1 on the BAS, less any GST collected.
To qualify for the second extension period your actual GST turnover for the quarter ended 31 December 2020 must be down 30% when compared to the December 2019 quarter.
If you are not eligible for the first extension period, you can still receive JobKeeper for the second period (January – March 2021) if your income meets the drop in turnover test for the December quarter.
The ATO has revised the eligibility rules for employees. In order to claim JobKeeper for the extension periods, employees must have commenced employment prior to 1 July 2020. If the employee was employed on a casual basis then they must have been employed on a regular and systematic basis for 12 months prior to 1 July 2020.
The eligibility requirements for Sole traders and eligible business participants remains unchanged.
The ATO have announced a two-tiered payment system for the extension periods that is based on the hours your employees worked in either February or June 2020. If the employee worked more than 80 hours in either month they will be able to receive the higher JobKeeper payment.
For the first extension period the payment amounts have reduced as follows
$1,200 per fortnight for employees who worked more than 80 hours in February or June 2020
$750 per fortnight for all other employees
If you are topping up the payments to staff for JobKeeper you will need to reduce the amount you are paying to match the reduced JobKeeper amounts.
The payment of the JobKeeper reimbursement will be made in the same manner as the initial JobKeeper period. You will be required to make payment to eligible employees each fortnight and a monthly reimbursement will be made after lodgment of the monthly declaration with the ATO. The ATO have provided an extension for the October payrolls, providing employees have been paid by 31 October 2020 you will remain eligible to claim the JobKeeper reimbursement.
Sole traders and eligible business participants will also need to review their hours worked to determine the appropriate payment rate. If you worked in your business for less than 80 hours in February 2020 then the lower payment rate will apply. It is expected that you will be able to substantiate the hours worked with timesheets, invoices, diary records or other business records.
CALL TO ACTION We are encouraging all clients to review your turnover to 30 September 2020 ASAP to confirm whether you will be eligible for the first extension period. This should ideally be completed prior to your first payroll in October in order to ensure that employees are paid correctly. If you are not eligible you should revert to paying employees only for the hours that they work.