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Re: JOB Keeper Payment and Centrelink

Newbie

Views 995

Replies 4

Hi 

I have clients that have employees that work part time currently working only 1 day or 2 days per week. My question is they do not currently earn $750 gross per week so how will this effect their arrangement with centrelink. 

Will it reduce the money are paid?

Will it stop the benefits they receive ie discount medicines etc?

I know they will worry about this.

Plus what if the employer has not had the money to pay them the extra money to bring them to the $750 gross  per week and has not been able to get assistance from their bank? Will they still be able to be paid  what they have paid them?

Thank you

 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee

Replies 0

At this point it is saying that the payment is taxable income, so your clients will need to report it to Centrelink and see if it does impact their payments.
I think more details will be released by the ATO soon about how employers should pay the money as it has now passed parliament. Maybe check the treasury website or back here next week?.
4 REPLIES 4

Most helpful response

Devotee

Replies 0

At this point it is saying that the payment is taxable income, so your clients will need to report it to Centrelink and see if it does impact their payments.
I think more details will be released by the ATO soon about how employers should pay the money as it has now passed parliament. Maybe check the treasury website or back here next week?.

Newbie

Replies 2

My understanding is that they then can not apply for JobKeeper.  Employers need to pay their full pay.  They can't chop and choose who to pay.  The full $1500 per fortnight has to be paid to the employee.  Some gain, however others will need to be topped up.  Personally i don't see this as an issue as the employer is only paying minimal out.  If they are already paying more than $1500 per fortnight to some, then it's a no brainer.

Newbie

Replies 1

Thank you for your response LISAB, The issue is that they are a Hair Salon in the city who have hardly any customers for weeks and therefore have are struggling to pay the regular wages. Now two out of the three staff earn less than 1500 gross a fortnight and business owners are struggling to get the assistance from the banks for short term finance. None of this is easy and simple even when the Govt is assisting with money there a time delay and not everyone will qualify. I will speak directly to the ATO.

ATO Certified Response

Community Moderator

Replies 0

Hi @ALBS

 

Thanks for reaching out to us during this stressful time.

 

Now that the legislation has passed, we have updated the JobKeeper Payment section of our website where you can find out about paying your eligible employees, including how to pay them, when to pay them and how much to pay them.

 

You will not be eligible for the JobKeeper payment if you pay your nominated employee less than $1,500 per fortnight. This means that employees who would usually be paid less (e.g. a part-time employee working two days a week) must be paid $1,500 per fortnight.

 

For the first two fortnights (30 March – 12 April, 13 April – 26 April), we will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by the end of April. This means that you can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April. This is to give employers time to make the necessary adjustments.

 

Also, as the JobKeeper Payment will be paid to the employees as taxable income, any Centrelink benefits (e.g. Family Tax Benefit) that includes taxable income in the income test may be impacted. For more information, we recommend that you get in touch with Services Australia (Centrelink).

 

We wish you all the best with it.

 

Thanks, ChrisR