This information is provided for Employers and business owners. The JobKeeper payment is open to eligible employers so they can continue to pay their employees and restart quickly when the crisis is over. Talk to your employer for more information.
What is the JobKeeper Subsidy payment?
The JobKeeper Subsidy payment is a Government programme which will effectively reimburse participating employers $1,500 per JobKeeper Fortnight per eligible employee.
Normal pay cycles for employees (weekly, fortnightly, monthly) can be maintained, but the government reimbursement will be monthly in arrears (refer JobKeeper Subsidy in the table below).
Which Businesses are Eligible?
It’s available to eligible businesses provided their turnover will be reduced by more than 30 per cent relative to a comparable period a year ago. Where a business was not in operation a year earlier or where their turnover a year earlier was not representative of their usual or average turnover, the Tax Commissioner will have discretion to consider additional information that the business is adversely affected
How does it work?
The JobKeeper Subsidy payment period commenced from Monday 30 March 2020 and will apply for 13 full fortnights until Sunday 27 September 2020. The ATO will reimburse participating employers monthly in arrears $1,500 for each JobKeeper Fortnight per eligible employee paid by the employer.
Regardless of the frequency of regular pay cycles or out of cycle pay periods, or the pay period start and end dates, the $1,500 per fortnight applies to the paydays (payment date) within the defined JobKeeper Fortnights and from which fixed fortnight the payment applies. Special rules apply for payments within the month of April and for employees receiving monthly pay.
The ATO has specified the 13 Fortnightly periods that the JobKeeper Payments will apply for, which are:
The ATO has linked the JobKeeper Subsidy to the Employer paydays that fall within each of the 13 JobKeeper Fortnights.
Therefore if you do not have a fortnightly pay cycle, you can continue with your normal pay cycle as long as all eligible employee(s) are being paid at least $1,500 within each JobKeeper Fortnight (or at least the JobKeeper Subsidy amount for Monthly payrolls). This is explained further below.
NOTE: For April payments, given the transition into the JobKeeper payment, you will be able to retrospectively apply this payment for paydays on or after 30 March by the end of April.
How will this work in Practice?
Weekly payslip frequency - You will need to ensure each eligible employee receives at least $1,500 across the paydays within each JobKeeper Fortnight period, including any out of cycle payments.
For example if your weekly payday is on Wednesdays, then there are 2 paydays (1/4 and 8/4) within JobKeeper Fortnight 01, so the total pay per eligible employee must be at least $1,500 for those 2 weekly pays combined. The weekly pays can be evenly split ($750/week) or the second pay must make up at least the total $1,500 ($400 week 1 and then $1,100 week 2).
Fortnightly payslip frequency - You will need to ensure each eligible employee receives at least $1,500 for the payment dates within each JobKeeper Fortnight period, including any out of cycle payments.
Monthly payslip frequency – You will need to ensure each eligible employee receives at least $1,500 for each full JobKeeper Fortnight within the month. This will be $3,000 for each month except August (when it will be $4,500 as August has 3 JobKeeper Fortnights).
You may choose to pay $3,250 each month (for the full 6 months), but reimbursements are only based on the complete fortnights per month as noted in the table above.
Adhoc payslip frequency – You will need to ensure that any paydays that fall with the JobKeeper Fortnight include a payment of at least $1,500 per fortnight for eligible employees.
What do I need to do as an Employer to receive the JobKeeper Subsidy?
There are six actions that an employer will be required to do, in order to receive the JobKeeper Subsidy from the Government (in addition to meeting eligibility requirements):
Please read our processing guide for step by step instructions for the Easy Payslip processes.
1. Enrol in the program
Employers will need to enrol online through one of the following options that will be available from 20 April:
- ATO Business Portal
- ATO Online Services for Agents
- ATO Online Services for Individuals.
This step can be done here.
2. Get your Employees to complete the 'JobKeeper Employee Nomination Notice'
Firstly you need to agree which employee(s) you are going to pay with the JobKeeper Subsidy you will claim from the Government. An Employee is only eligible to receive the JobKeeper Payment from one Employer, so you will need to agree with your employees that they want to receive a JobKeeper Payment from you.
For the Employees that you will be paying the JobKeeper Payment to, you will need to print this form and have all of your employees complete and sign it. You will need to retain these forms with your business records. The form can be found here
3. Notification to the ATO of included employees
As the 'JobKeeper Employee Nomination Notice' is a paper form you need to retain, you will also need to electronically inform the ATO which employees you are going to include for the JobKeeper Payment.
This electronic notification process will occur by entering specific information in an Employees payslip and then lodging the STP File.
You only need to do this electronic notification step once.
Step by step instructions for this step can found here
4. Continue paying staff, sending payslips & STP files
The processing of regular payslips can occur as normal provided the employee is receiving at least $1,500.00 per JobKeeper Fortnight period for all Weekly, Fortnightly and Ad hoc frequency payers, and $3,000.00 per month ($4,500.00 in August) for Monthly frequency payers.
It is only when the Employee receives less than these amounts, that a Top Up payment will be required to ensure compliance with the JobKeeper rules.
The tables below provide some further guidance on these amounts:
1) For Employers with Weekly, Fortnightly or Adhoc Payslip frequencies, you need to determine if your Employee has received the Minimum Gross Payment amount when combining all payslips created with Payment Dates in a particular JobKeeper Fortnight period?
For example, if an Employer creates their Payslips weekly, and in JobKeeper Fortnight 01 you have paid your Employee $450.00 Gross in those two weekly pays (being the 1-Apr and 8-Apr), so they have received a combined Gross payment of $900.00 during JobKeeper Fortnight 01.
As this employer has received less than $1,500.00, you with then need to create a payslip for the remaining JobKeeper payment amount of $600 (being $1,500.00 - $900.00).
NOTE: You need to refer to the Payment Date for determining what JobKeeper Fortnight the payslip falls in when making the above calculation.
2) For Employers with Monthly Payslip frequencies, has your Employee received the Minimum Gross Payment amount for all payslips created with Payment Dates in the particular combined JobKeeper Fortnightly periods?
Step by step instructions for this can be found here.
5. Monthly declaration to the ATO
Completing an online declaration with your estimated turnover details, and to confirm you've paid your eligible employees the effective $1,500 per JobKeeper Fortnight minimum amount required.
Details of this step can be found here
6. Notify the ATO if an Employee will no longer be receiving JobKeeper from you
If an Employee is no longer going to receive the JobKeeper Payment from you prior to the last JobKeeper Fortnight 13 (ending 27 September 2020), then you will need to electronically inform the ATO that the Employee is 'Finishing'.
Step by step instructions for this can be found here