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COVID-19 - Partnership no employees

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Hi 

I have a partnership business with my wife. Its a Pty Ltd company and we are also the only employees. We both work full-time in the business and we pay ourselves weekly. 

1. Are we both eligible for JobKeeper or is it only the business?

2. If only the business do I have to pay the nominated employee $1500 per fortnight? I use STP and lodge it weekly. Do I have to nominate myself in STP?

3. How is the JobKeeper payment treated by the Tax office. Do I have to report it on my next BAS. If so, how? If not, what do I do with it on the books. 

4.If the Jobkeeper payment is income for the company how will it affect eligibility , as we have lost 50% of our income over the coming quarter but the payment may make this less than 30%. 

thank you 

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Hi @Johnul 

 

Thank you for getting in touch.

 

It is important to work out if your business is a partnership or company, as each have different eligibility requirements and are dealt with differently. From your message it sounds like you and your wife have a company and both share the responsibilities equally.

 

The JobKeeper payment works through paying eligible employers, which is then passed onto eligible employees. In your case, if your business is eligible and you and your wife are both eligible employees and you choose to take part in this payment, then you will need to continue to pay yourselves the $1500 a fortnight and you will receive the first reimbursement in May:

The first payments to eligible employers will commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020.’ (https://www.ato.gov.au/general/JobKeeper-Payment/)

 

The links below will help you work out your eligibility

https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Eligible-employers/

https://www.ato.gov.au/General/JobKeeper-Payment/Employees/Eligible-employees/

 

The link below will answer your questions about payroll, how to pay, tax consequences and more:

https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Paying-your-eligible-employees/

 

Receiving the JobKeeper payment will not influence your eligibility for further support from this scheme later on.

 

I hope this answers all of your questions,

GeorgiaL

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Hi @Johnul 

 

Thank you for getting in touch.

 

It is important to work out if your business is a partnership or company, as each have different eligibility requirements and are dealt with differently. From your message it sounds like you and your wife have a company and both share the responsibilities equally.

 

The JobKeeper payment works through paying eligible employers, which is then passed onto eligible employees. In your case, if your business is eligible and you and your wife are both eligible employees and you choose to take part in this payment, then you will need to continue to pay yourselves the $1500 a fortnight and you will receive the first reimbursement in May:

The first payments to eligible employers will commence in the first week of May 2020. JobKeeper payments can be made for the period beginning 30 March 2020.’ (https://www.ato.gov.au/general/JobKeeper-Payment/)

 

The links below will help you work out your eligibility

https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Eligible-employers/

https://www.ato.gov.au/General/JobKeeper-Payment/Employees/Eligible-employees/

 

The link below will answer your questions about payroll, how to pay, tax consequences and more:

https://www.ato.gov.au/General/JobKeeper-Payment/Employers/Paying-your-eligible-employees/

 

Receiving the JobKeeper payment will not influence your eligibility for further support from this scheme later on.

 

I hope this answers all of your questions,

GeorgiaL