This article is in 3 parts

1. Overview of JK2 Processes, and
2. Points you must be aware of and do now
3. Links for additional resources

​The JobKeeper 2 legislation has now been passed and a lot of information has become available.

We now know that things will be easier than we first thought. Yay!!

 


1. Summary of the JK2 steps:

      • Eligibility – employer – Turnover test details and Subsidy rates
      • Eligibility – employee
      • Update your Xero payroll system

 

Employer Eligibility

A. Calculate and document your Actual GST Turnover Decline between 1 July – 30 Sept 2020 vs 1 July – 30 Sept 2019

B. If your Actual GST Turnover Decline is 15% or more (Not for Profit Organisations including churches only):

          • And, your organisation is already registered and receiving JobKeeper1
            • You do not need to Re-enrol on the ATO
          • And your organisation is not already registered and receiving JobKeeper1
            • You do need to Enrol on the ATO for JobKeeper 2 before 31st October 2020, go to your ATO Business Portal

C. If your Actual GST Turnover Decline is less than 15% (Not for Profit Organisations)

          • It is possible that your organisation may be able to receive JK2 payments if they pass an Alternate Test – see your advisor about this, or
          • Do nothing – no need to un-enrol for the JobKeeper program.

If your Actual GST Turnover Decline is 15% or more (Not for Profit Organisations)

Eligible Employees will need to be split into 2 tiers:

        • Tier 1 – Employees who have actively worked for the organisation 80 hours during the 4 weeks before 1 March 2020 or 1 July 2020
        • Tier 2 – Any other “eligible employee” per the rules for eligibility note here

JobKeeper 2 subsidies 28 September 2020 through 3 January 2020:

Subsidies are reduced, from JK1, per fortnight to:

        • Tier 1= $1200 per fortnight
        • Tier 2= $750 per fortnight

 

Employee Eligibility

Eligible Employees are:

          • Full-Time and Part-Time employees must have started employment before 1 July 2020,
          • Long-term casual Employees must have been employed on a regular and systematic basis for at least the 12-month period that ended 1 July 2020 andis not a permanent employee of any other organisation
          • Other conditions – click here for more details from the ATO website
          • Who have completed and signed a Nomination Form – no need to re-sign the Nomination Form for JobKeeper 2

Update Payroll System and Notify Employees

          • Determine which employees are eligible for Tier 1 and which Tier 2
          • Update payroll system to notify the ATO the Tier of each eligible employee
          • Calculate and update the JobKeeper Top-Up payment for each employee.
          • Notify your employees in writing about which rate applies to them, within 7 days of notifying the ATO via STP

2. Points you must be aware of and action now as necessary

Until you are 100% certain that your organisation will receive JK2 subsidies we recommend that the employer:

        • Remove any JobKeeper Top-up payments for payroll payments dated 28 Sept 2020 and after, and
        • Notify the employees that this has been done and that when the JK2 eligibility becomes clear the employees will be advised.

Ministers (religious practitioners) who worked more that 80 hours over the 28 day period before 1 March 2020 or 1 July 2020, must complete a form indicating such. The form is not yet available

When the eligibility is clarified the organisation/church-employer must notify employees that:

        • The organisation is or is not eligible for JobKeeper 2 subsidies, and
        • The details of their new wages, and
        • Benkorp recommends that a record of the employee’s receipt of this information be kept in their employment folder

 

Then, if appropriate, update your Xero Payroll as above and process the catch-up JobKeeper payments if required.

 


3. Links for additional online resources direct at the ATO:

Please see this ATO for more details about JobKeeper and Employees

https://www.ato.gov.au/general/jobkeeper-payment/employees/

https://www.ato.gov.au/uploadedFiles/Content/CR/downloads/Extension-of-the-JobKeeper-Payment-factsheet.pdf

https://www.ato.gov.au/General/JobKeeper-Payment/JobKeeper-extension-announcement/?=redirected_jobkeeperextension