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Business Participant

Newbie

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Hello 

 

We have a director and shareholder of the company who has been with us since November 2018. 

 

He had previously not received wages or salaries from the business, however, we made the first wages payment to him on 31 March 2020. 

 

Will he be eligible for Jobkeeper payments as a Business Participant?

 

Thanks

 

KP001

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Former Community Support

Replies 0

Hi @KP001,

 

You would need to determine if they were an employee of the entity on 1 March, or not. If considered an employee, they would not be eligible.

 

From the information page on eligible business participants at the ATO website:

 

Eligible business participant

Your non-employee individual is an eligible business participant of your entity for the fortnight if they meet all of the following:

  • They are an individual not employed by your entity.
  • They are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).
  • They are one of the following (at 1 March 2020 and for the fortnight you are claiming)
    • a sole trader
    • a partner in the partnership
    • an adult beneficiary of the trust
    • a shareholder or director in the company.
     
  • As at 1 March 2020, they are both
    • aged at least 16
    • an Australian resident (within the meaning of section 7 of the Social Security Act 1991), or a resident for income tax purposes and the holder of a special category (Subclass 444) visa.
     
  • They are not currently receiving government parental leave or Dad and Partner Pay.
  • They are not currently totally incapacitated for work and receiving payments under an Australian workers’ compensation law in respect of their total incapacity to work.
  • They are not an employee (other than a casual employee) of another entity.
  • They have given your entity (or us, if a sole trader) a JobKeeper nomination notice.
  • They have not previously given another entity, or us, a JobKeeper nomination notice.

 

Hope this helps!

 

Josh

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @KP001,

 

You would need to determine if they were an employee of the entity on 1 March, or not. If considered an employee, they would not be eligible.

 

From the information page on eligible business participants at the ATO website:

 

Eligible business participant

Your non-employee individual is an eligible business participant of your entity for the fortnight if they meet all of the following:

  • They are an individual not employed by your entity.
  • They are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).
  • They are one of the following (at 1 March 2020 and for the fortnight you are claiming)
    • a sole trader
    • a partner in the partnership
    • an adult beneficiary of the trust
    • a shareholder or director in the company.
     
  • As at 1 March 2020, they are both
    • aged at least 16
    • an Australian resident (within the meaning of section 7 of the Social Security Act 1991), or a resident for income tax purposes and the holder of a special category (Subclass 444) visa.
     
  • They are not currently receiving government parental leave or Dad and Partner Pay.
  • They are not currently totally incapacitated for work and receiving payments under an Australian workers’ compensation law in respect of their total incapacity to work.
  • They are not an employee (other than a casual employee) of another entity.
  • They have given your entity (or us, if a sole trader) a JobKeeper nomination notice.
  • They have not previously given another entity, or us, a JobKeeper nomination notice.

 

Hope this helps!

 

Josh