A few more details have been issued by the ATO in relation to the mechanics of the JobKeeper allowance. Sole traders and those running their business through trusts can also apply for one person.
In the meantime this is a quick wrap up of what all businesses (including sole traders and trusts) need to do.
- If your turnover has dropped, or you expect it to drop by 30%, then register your interest for the JobKeeper scheme if you have not already done so. Note it is the employer who registers, not the employees.
- If your business meets the turnover test and has eligible employees, the next step is for your business to enrol for JobKeeper. The first date you can enrol is the 20th April and you must be enrolled by end of April to receive the April payments. You enrol by using the ATO business portal.
- To access the business portal, please ensure you have a personal mygovID set up and that you have linked your business ABN to your personal mygovID. Note MygovID is not the same as Mygov. I recommend you do this now as it can be tricky.
- You must give each eligible employee a form to complete and return. If you are on the payroll you need to complete one as well. You will send these to the ATO.
- Where you pass on all or part of the Jobkeeper amount to the employee (to bring their gross salary up to $1,500 pfn), you must do so through single touch payroll and withhold tax. You do not need to pay super on these additional payments.
- You will need to set up additional payroll pay items within your STP software before you run the April pays. For MYOB essentials click here. For Xero click here. If we administer your payroll, we will do this for you.
- You must pay your employees the $1,500 pfn (or more if their salary is higher) BEFORE you receive the $1,500 from the ATO. ie you pay the April JobKeeper amounts and then get them refunded by the ATO in May.
- On the 5th May logon to the business portal and check that the correct employees are marked as being eligible for JobKeeper.
- Note that utilising the JobKeeper scheme is optional and at the discretion of the employer.
- The self-employed and those applying via a trust structure need to apply via the ATO business portal where you will confirm each month that your turnover has dropped to receive the payment.
For a great summary with all the hyperlinks see this MLC update
If you need assistance please call me, we can dial into your computer and assist you remotely with payroll issues, mygovID problems, and enroling as required.
Lindsay 0413 952 180