ATO: Time for employers to get ready for the JobKeeper extension

THE Australian Taxation Office (ATO) said it would continue to provide ongoing support to employers to assist them to prepare for the next phase of JobKeeper payments.

The JobKeeper Payment scheme has been extended from September 28, 2020, until March 28, 2021.

"There are some key dates to keep in mind, and simple steps employers can take now, so they are ready for the changes, but please remember that not everything needs to be done from next week” Taxation Deputy Commissioner James O’Halloran said.

“From Monday September 28, employers will need to pay their eligible employees a different rate of JobKeeper, with the rate dependent on the number of hours they work. These rates will change again from Monday, January 4,” Mr O’Halloran said.

It is important for employers to let their eligible employees know now what rate of JobKeeper payment they will receive. This will then be the amount that the ATO pays to employers.

“Although you do not need to re-enrol in JobKeeper, you do need to notify us of your eligible employees and what rate you are paying them as part of your normal payday reporting in October. This can easily be done through Single Touch Payroll," Mr O'Halloran said.

“Employers  will also need to nominate any new employees if they  are applying for a JobKeeper payment for them for the first time,” he said.

For the extension period commencing September 28, 2020, employers will need to show that their actual GST turnover has declined in the September 2020 quarter relative to a comparable period. This needs to be done before October 31, 2020. There is an actual decline in turnover test that can be accessed.. Alternative tests for determining actual decline in turnover may be available in some circumstances and the ATO is encouraging businesses to seek guidance if necessary.

“We are here to support employers and we know how vital the JobKeeper payment is to the community,” Mr O’Halloran said.

“I encourage employers seeking advice on JobKeeper to contact their tax agent or call us on our dedicated help line 13 10 20.

“There is also a range of information, fact sheets and videos available from ato.gov.au to help and support you in this process. We’re also preparing translated information, which will be available in 16 languages,” Mr O’Halloran said.

 

KEY DATES

ATO has advised employers to:

• Now: notify your employees about the JobKeeper payment they can expect to receive.
• September 28, 2020: start paying your eligible employees Tier 1 and Tier 2 JobKeeper rates based on their hours worked. 
• From September 28: if using Single Touch Payroll to notify us of your eligible employees, provide each eligible employee’s Tier as part of your normal payday reporting. Enrol for the JobKeeper payment if you’re doing so for the first time.
• Between October 1–14, 2020: complete your October JobKeeper monthly business declarations to receive your reimbursement for the September fortnights.
• Between October 1–31, 2020: prepare and submit your businesses actual decline in turnover to the ATO.
• Before October 31, 2020: ensure you meet the wage condition for all eligible employees included in the JobKeeper scheme for the JobKeeper fortnights starting September 28, 2020 and October 12, 2020.
• From November 1, 2020: complete your monthly business declaration and confirm what payment tier you are claiming for each employee.

FURTHER INFORMATION

More information on the rates of the JobKeeper payment is available at ato.gov.au/JobkeeperExtension,

For information about current JobKeeper support and assistance available from the ATO and information about the JobKeeper extension go to ato.gov.au/JobKeeper.

Individuals, sole traders, small or medium businesses having difficulty meeting tax and super obligations because of COVID-19 can contact the ATO’s Emergency Support Infoline on 1800 806 218 to discuss tailored support options.

 

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