#jobkeeper

Jobkeeper 2.0 Eligibility - Worked Example

Jobkeeper 2.0 Eligibility - Worked Example

There are two steps involved to work out if you are eligible for Jobkeeper 2.0 (Extension). This worked example, based on a real life case, shows you the steps to follow.

Step 1.

First, check if your Turnover for Sept Qtr 2020 has fallen by 30% compared to Sept Qtr 2019.

Start with your Turnover information from your records:

(You can get this from your accounting software. Dump it into XL for ease of calculation).

  • Jul-Sep 2020 $50,131**

  • Apr-Jun 2020 $26,956

  • Jan-Mar 2020 $52,579

  • Oct-Dec 2019 $69,630

  • Jul-Sep 2019 $86,436**

To compare Sept Qtr 2020 with Sept Qtr 2019, you divide the Sept 2020 figure by the Sept 2019 figure;

  • $50,131/$86,436 = 58%

The threshold for JobKeeper 2.0 = 70%, which means a 30% reduction.

In this case, yes, this client business is eligible.

Step 2.

Secondly, we need to check on the eligibility of the employees, and what rate applies.

This is based on hours worked in a relevant 28 day period. For Tier 1, they need to work 80 hours.

Paycycles (get this information from your pay records)

The Last paycycle before 1 March was week ended 1 March.

So, 28 days prior is 2nd Feb, so you need to count the hours worked from 2 Feb

Employees who worked > 80 hours Eligible for Tier 1 ($1200 per fortnight)

  • Brian S  88 h 30 min

  • Jaysa N 104 h 45 min

Employees who worked < 80 hours - Eligible for Tier 2 ($750 per fortnight)

  • Maurice W 12 h

Other employees currently on Jobkeeper but NIL hours in Feb and June 28 day cycles

  • Aaron S

  • Erin L

Advise the ATO

Following the above checks, the ATO needs to be advised of:

  • who will no longer be eligible for any Jobkeeper payment,

  • which employees will be eligible for Tier 1 payments,

  • which employees will be eligible for Tier 2 payments.

You will also need to have records to prove the hours worked. The ATO has indicated this will be a key area for “compliance checks” (audits).

If your records are in good order, this should be a straightforward process to check for eligibility.

If your records are a bit of a mess, it will be harder. (Not impossible, but not fun).

Let me know if you need a hand

Peter

Claiming Jobkeeper for September wages - Must enrol your employees today.

30 September 2020 – enrolments close for September fortnights.

To claim payments for the September JobKeeper fortnights, you must enrol by close of business today.

Did you want to start claiming Jobkeeper for wages paid in September?  If so, you must ‘enrol’ your eligible employees in the system.

Today is the last day to enrol your eligible employees.

Wages paid in September will be reimbursed at the old rate, $1,500 per fortnight.

This is a hard date, if you miss it, you won’t be able to claim for wages paid in September.

Enrolling after September

You can enrol for JobKeeper until the program closes, provided you meet the eligibility requirements.

You will need to enrol your eligible employees by the end of each month to claim reimbursements for JobKeeper fortnights in that month.

Let me know if you need a hand

Peter

Reminder - Jobkeeper for July

Time to get your information ready for your July Jobkeeper declaration.

This is to cover Jobkeeper fortnights which ended during July.

These are Jobkeeper Fortnight 7 (22 June – 5th July) and Fortnight 8 (6 July – 19 July).

Be sure to nominate the number of eligible employees you are claiming for in each Fortnight. Also advise if any employees have come or gone during the month, or are no longer eligible.

Please note - you must have actually paid them $1,500 per fortnight to be eligible.

Declare the GST turnover for your business for July, 2020 and also your projected GST turnover for August 2020.

Also, remember that in order to claim JobKeeper payments for the August JobKeeper fortnights, you must enrol for JobKeeper and identify your eligible employees by 31 August.

Let me know if you need a hand.

Peter