The second JobKeeper extension is almost here.
These are a few important points and recommendations you will need to know:
- The period will run from 4 January 2021 to 28 March 2021.
- The Actual Decline test period is: October – December 2020 quarter compared to the October – December 2019
- Once again you will need to retest your turnover and, if eligible, lodge your declaration and details, on the ATO portal, that your actual GST turnover for this period has declined by the appropriate amount (15% for NFPs, 30% for Business)
- The new decline turnover test must be lodged before competing monthly declarations from 1st February 2021.
You can be eligible for JobKeeper extension 2:
- even if you were not eligible for JobKeeper extension 1, however
- you will also need to have satisfied the original decline in turnover test.
You also need to have satisfied the original decline in turnover test. However, if you:
- were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test
- are enrolling in JobKeeper for the first time from 28 September 2020, and if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.
The rates of the JobKeeper payment in this extension period are:
- Tier 1: $1,000 per fortnight (before tax)
- Tier 2: $650 per fortnight (before tax).
What you can to do now
- Determine if you expect to your organisation will be eligible for JobKeeper 2.0, Extension 2 payments
- work out which Tier (1 or 2) applies to each of your eligible employees and/or eligible religious practitioners, and
- calculate the JobKeeper top-up amounts for each employee
The first JobKeeper fortnight may begin before you have completed the December accounts and therefore you may not know if your organisation is eligible for your first payrun.
Therefore, if in any doubt that your organisation will be eligible, do not pay any JobKeeper Top-up payments for employees until you are sure and backpay them if necessary.
How to stop receiving JobKeeper payments
- You can choose to stop receiving JobKeeper payments at any time.
- If you want to stop receiving JobKeeper payments, you do not need to unenroll – you simply stop applying for JobKeeper support
- You do not need to notify the ATO if you do not satisfy the actual decline in turnover test for a JobKeeper extension period.
- Make sure that the JobKeeper details for employees in Xero are also updated.
You can read all of our JobKeeper related blogs via our Page dedicated to JobKeeper Info: https://www.benkorp.com/jobkeeper-information-page/
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