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Re: Boosting cash flow for employers eligibility

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I'm new

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My parents were wondering, as company directors of their small business, would they get the grant? Would they count as employees under the company? They only have 1 staff member under them and he is looking to leave/retire and claim allowance since there is lack of business and therefore he has reduced working hours, how long would they have to keep him around in order to get both stimulus payments if they are eligible?

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ATO Certified

Community Manager

Replies 1

Hi @RayF,

 

It sounds like they would be eligible.

 

Check out he criteria for Boosting cash flow for employers.

 

We also have other options to Support for sole traders and small businesses affected by COVID-19 (novel coronavirus).

 

Let us know if you have any questions.

 

KylieS

6 REPLIES 6
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Best answer

ATO Certified

Community Manager

Replies 1

Hi @RayF,

 

It sounds like they would be eligible.

 

Check out he criteria for Boosting cash flow for employers.

 

We also have other options to Support for sole traders and small businesses affected by COVID-19 (novel coronavirus).

 

Let us know if you have any questions.

 

KylieS

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I'm new

Replies 0

Hi @KylieATO 

Based on what Glenn4802 said, would it be safe to let the employee go if he chooses to leave?

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Master

Replies 3

You parents would count as employees if they receive salary or wages from the company. If they have been doing this in the past, there would be no issue with them being considered employees.  If they only started to receive salary or wages after the stimulus package was announced, those payments might be disregarded when the amount of the stimulus payment is calculated.

 

Assuming that the other employee has not just recently started working in the business, the company would be entitled to receive both stimulus payments even if the employee retired now.  This is based solely on my reading of the rules.   If the employee was to retire, the company would need to lodge the required activity statement to receive the payments.

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Community Manager

Replies 2

Hi @RayF

 

Yes as long as they make the required payments of;

 

  • salary and wages
  • director fees
  • eligible retirement or termination payments
  • compensation payments
  • voluntary withholding from payments to contractors.

KyieS

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Newbie

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So if a company has a director and that director sub contracts for the company and draws a wage but only reports payg on annual tax return are they eligible. Payg has not been reported in quarterly BAS only annually?
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Community Support

Replies 0

Hi @Stylecrete

 

Thanks for reaching out to us.

 

To get the cash flow boosts you will need to meet the eligibility requirements as outlined on our website. One of the requirements is that you have made eligible payments that you are required to withhold from (even if the amount you need to withhold is zero). Eligible payments include:

  • salary and wages
  • director fees
  • eligible retirement or termination payments
  • compensation payments
  • voluntary withholding from payments to contractors.

 

To access the cash flow boost, you must lodge your activity statement. For businesses that do not need to lodge an activity statement for PAYG withholding, we are working on a solution and will update our website soon. The updated information should provide some details about what you need to do.

 

We hope you found this information helpful. Good luck with it all.

 

Thanks, ChrisR