This JobMaker Hiring Credit (JMHC) information is provided for Employers and business owners.
On 6 October 2020, the Government announced that a JobMaker Hiring Credit will be available to employers when they hire an eligible person aged 16 to 35. The scheme will apply for each new job created until 6 October 2021.
From 7 October 2020, eligible employers can qualify for:
- $200 a week for each additional eligible employee they hire aged 16 to 29, and
- $100 a week for each additional eligible employee aged 30 to 35.
Employers can receive the payment for eligible employees who work, or are paid, an average of 20 hours per week for a period of up to 12 months.
An employee’s age is calculated based on the commencement date the employer reports via the STP payroll event.
There is no requirement for an employer to report the rate they think they will get for their employees. This will be calculated by the ATO based on the information received.
Amounts paid to employers will be capped by relative changes in headcount and payroll over time, please refer to https://www.ato.gov.au/jobmakerhiringcreditguide for information regarding this.
The JMHC will be claimed quarterly in arrears by the employer from the ATO from 1 February 2020.
Employers are eligible to receive the JobMaker Hiring Credit if they:
- have an Australian Business Number (ABN),
- are up to date with their income tax and GST lodgment obligations,
- are registered for Pay As You Go (PAYG) withholding,
- are reporting through Single Touch Payroll,
- are an Australian resident entity that meets all other eligibility criteria even if they are owned by a sovereign entity, and
- meet the payroll and headcount additionality criteria.
The additionality criteria require that there is an increase in:
- the business’ total employee headcount from the reference date of 30 September 2020 (baseline headcount), and
- the payroll of the business for the JobMaker period, as compared to the three months to 6 October 2020 (baseline payroll).
Eligible Additional Employees
To be an eligible, additional employee, the employee in summary must:
- At the time of their employment be aged either;
- 16 to 29, to attract the higher rate of $200 per week; or
- 30 to 35 to attract the lower rate of $100 per week,
- have worked, or were paid, at least 20 hours per week on average over the JobMaker period,
- have commenced their employment with the employer between 7 October 2020 and 6 October 2021,
- For 28 consecutive days within the past 84 days (before the employee was hired), they received:
- Youth Allowance (except for full-time study or was a new apprentice), or
- Employees may be employed on a permanent, casual or fixed-term basis.
- Youth Allowance (except for full-time study or was a new apprentice), or
The Administration Process
- Employers can register for the JobMaker Hiring Credit through ATO online services, the Business Portal, or through a registered tax or BAS agent.
Nominate eligible additional employees:
- Employers need to identify, nominate and report their eligible additional employees through their STP enabled software. See below for instructions on how to do this in Easy Payslip.
- Employers can claim every 3 months (in arrears) through ATO online services, the Business Portal, or through a registered tax or BAS agent, starting from 1 February 2020.
A claim for an eligible employee can only be made:
- for a period of up to 12 months after their commencement of employment with the employer, or
- until the STP reported cessation date, whichever comes first.
The JobMaker Hiring Credit claim process will be online via ATO Online services and will not be managed via STP. Claims and amendments to claims must be undertaken within the claim period for each JobMaker period.
Key Due Dates
In the first instance, you should refer to the ATO website for up to date information surrounding the JobKeeper Extension
What do I need to do in Easy Payslip for JobMaker Hiring Credit?
There are Five actions that an employer will be required to do, to receive the JobMake Hiring Credit from the Government (in addition to meeting eligibility requirements noted above).
Step 1: Register
Employers can register for the JobMaker Hiring Credit through ATO online services, the Business Portal, or through a registered tax or BAS agent.
Step 2: Nominate 'Eligible Employees'
Each of the eligible additional employees must complete a JobMaker employee notice before the employer can nominate them. A completed notice verifies that the employee has declared they meet the eligibility requirements for the employer to receive the JobMaker Hiring Credit payment. This form should be retained by the Employer.
JobMaker Hiring Credit nomination via STP
Employers must use the STP payroll event to nominate employees eligible for the JobMaker Hiring Credit to the ATO.
Reporting of employees who have been nominated for the JobMaker Hiring Credit is expected to occur at the point of hiring during the JobMaker period dates, and before making a claim, noting it may take up to 72 hours for this information to be processed and made available for JobMaker Hiring Credit purposes.
To nominate an employee the Employer must ensure that they have included the correct information for the following Employee Details:
- Commencement Date
- Date of Birth
The process to notify the ATO of the Hiring Credit Nomination is to create a Payslip for each Employee and including a Taxable Allowance in it, that has a specific Description of JMHC-NOM.
See below for Screenshots of how to do this in Easy Payslip
Step 3: Claim the JMHR each quarter
Employers can claim every 3 months (in arrears) through ATO online services, the Business Portal, or through a registered tax or BAS agent, starting from 1 February 2020.
Step 4: Inform 'Minimum Hours of Each Employee'
An employer must inform the ATO via an STP payroll event when an employee that they have nominated has met the minimum hour's test for a JobMaker period that they intend to claim for.
Employers will need to report this Quarterly that they met the eligibility criteria.
Reporting of an employee meeting of the minimum hour's test is expected to occur at the point where the employer has confirmed the employee has met the test for the period, and before claiming for the period, noting it may take up to 72 hours for this information to be processed and made available for JobMaker Hiring Credit purposes.
The process to notify the ATO of the minimum hours is by creating a Payslip for each Employee and including a Taxable Allowance in it, that has a specific Description of JMHC-P?? (where the ?? the JobMaker period the test was met in.
Each JobMaker period has its own unique code:
There is no requirement to keep reporting this information in subsequent STP payroll events.
Step 5: Notify Employees Cessation Date
If an employee ceases working for you then you need to make them 'Inactive'. In doing this you will be required to enter their 'Cessation Date' into the System. This will be included in the next STP file for that Employee so that the ATO is informed of this date and can update their systems accordingly.
Refer to "How to make an Employee Inactive/Active" user guide for how to do this in Easy Payslip
This process for creating a Taxable Allowance with the relevant description for Steps 2 & 4 is shown below:
A) - Create a Payslip with a JobMaker Taxable Allowance with the specific Description to notify the ATO of the Employees JobKeeper Starting Fortnight & then the period you are claiming
1) Go to Payroll Home, enter the Start, End & Payment Dates, Payment Type, select Employee(s) and press 'Create Payrun'
NOTE: The unique combination of payroll start, end and payment dates can only be used on one payslip. So you will not be able to use the same dates as a previous payslip, and you won't be able to use the dates entered here, on a subsequent payslip.
Note: If you are doing a separate payslip specifically for this, you will need to zero out both the 'base hours', and the 'base hourly rate'.
2) Scroll down to 'Additional Payslip Options' & press the '+' button in the 'Allowances' line
Note: You will see the 'Taxable & 'Untaxed' Allowance options you can select from to input into the payslip.
3) Press the 'Taxable Allowances' option, select 'JobMaker' as the type, select 'JobMaker Employee Nomination' & press 'Add Item'
Note: You will see the allowance entry & proceed with the period notification, press 'Add allowances +'
4) Press the 'Taxable Allowances' option, select 'JobMaker' as the type, select the period you are claiming & press 'Add Item'
Note: You will see both allowance entries & proceed to 'Save & Send' the payslip
B) - You now need to lodge the STP file to the ATO
1) Press the 'View Summary & STP' button, which will bring up the following STP file
2) Press 'Lodge STP File', which will bring you to the declaration screen to sign your name & then press the 'Lodge Single Touch Payroll' button
Note: Once the STP file has been successfully submitted, a 'clock' icon will display next to the employees' name, which means the STP files are in 'Pending Status'. You can also select the downwards arrow to the employee line's right to view more information on the STP lodgement, like the time & date.