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JOBKEEPER

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Hello -  last week i stood down 15 staff.  I have registered for JOBKEEPER.   Do i have to start paying the staff the $1500 per fortnight NOW, or can i pay them the lump sum when i get it in May?  I DO NOT have fund to be able to pay them in advance. Please help clarify this thank you. 

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Most helpful response

Former Community Support

Replies 4

Hi @mattriand,

 

First of all I hope you are doing okay. That wouldn't have been any easy thing for you to have to do.

 

The JobKeeper legislation has not passed through Parliament yet. If and when it does, you will receive more information as to what to do. In the interim, I would encourage staff that were stood down to pursue their options with Centrelink, and then when JobKeeper payments kick in they should inform Centrelink of their change to circumstances. To answer your question, you are not required to keep paying staff that you have had to stand down, at this stage.

 

The Department of Treasury has provided an Employer factsheet on the recent Job Keeper payment.

 

I hope this is helpful.

 

Josh

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Hi Matt. To my knowledge legislation hasn’t passed with the details of what will be required. The way I understand it is that employers would pay their staff first and then be reimbursed from May but in your situation (& I’m sure 1000’s of other businesses just like yours) this just wont be possible.

I’m curious as to whether we withhold tax as they keep saying ‘$1,500 before tax’. Once it has passed they will provide further information and specifics and hopefully have a solution for this ‘pre-payment’ issue

Best of luck to you, I’m sure it would’ve been a heart-wrenching call for you to let your staff go.

Newbie

Replies 1

Hi Matt & Lee,

I've been asking same questions as yourselves and mine is also to do with the PAYG Withheld component relating to the JOBKEEPER payment. 

Yes, the documents relate to $1500 BEFORE Tax and I am very aware of this, and what I believe is you should be tacking the Tax out of the $1,500 Per F/N equates to $192 Tax Withheld and Nett payment to employee of $1,308.

I was caught up last year on receiving my Tax Return in a scenario which could play out with all this funding rollout, let me explain:

Remember the $1,000 that given to us by the government last year? Well I didn't get it all as I work permanent part-time and the previous year started receiving a part Age Pension, I was unaware that when you still work the Pension is added onto the Gross Income earned as INCOME, and hence I was not paying enough Tax and incurred a tax debt which was offset againset the $1,000 stimulus. Learnt from that and now pay extra tax.

 

What I am saying is the $1,500 in my option will be treated the same, added onto your existing Gross already accumulated - if Tax is not deducted off it and it IS deemed as Income it attracts a Tax debt at the submission of your ITR. I too need clarification not only for myself but for those I prepare payroll for at my Association. 

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Replies 0

I have 6 staff - same boat.

My understanding is YES you need to pay them in the meantime. You will get reimbursement at the apparently at the start of the following month. My calc is you'll need at least 6 weeks wages cover which many wont have cashflow for.

 

Ive applied for the Unsecured Loans offered to get us through but its taking forever & cashflow is drying up.

Ive also applied for JOBKEEPER BRIDGING LOAN & this is almost impossible as the banks need a JOBKEEPER ENROLMENT RECEIPT which is a document that doesnt even exist.

I spent 2 hours on phone with ATO yesterday & they are apparently talking to banks about this phantom document.

crazy hard times, hope you're ok

 

OOPS just realised your question was posted a month ago. You probably know this already

Most helpful response

Former Community Support

Replies 4

Hi @mattriand,

 

First of all I hope you are doing okay. That wouldn't have been any easy thing for you to have to do.

 

The JobKeeper legislation has not passed through Parliament yet. If and when it does, you will receive more information as to what to do. In the interim, I would encourage staff that were stood down to pursue their options with Centrelink, and then when JobKeeper payments kick in they should inform Centrelink of their change to circumstances. To answer your question, you are not required to keep paying staff that you have had to stand down, at this stage.

 

The Department of Treasury has provided an Employer factsheet on the recent Job Keeper payment.

 

I hope this is helpful.

 

Josh

Initiate

Replies 1

Anymore information on this please - your response is 2 weeks old and the legisalation has passed 

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Replies 0

Hi.  I've just come across this in the JobKeeper Frequently Asked Questions factsheet found here

 

WHAT HAPPENS IF I DON’T HAVE THE MONEY TO CONTINUE PAYING MY ELIGIBLE EMPLOYEES UNTIL THE PAYMENTS ARE MADE?
The JobKeeper Payment is a reimbursement scheme that will be paid by the ATO monthly in arrears.
In cases where this presents cash flow difficulties, businesses may want to speak to their bank to discuss their options. The banks have said businesses may be able to use the upcoming JobKeeper payment as a basis to seek credit in order to pay their employees until the scheme is making its first payments.

 

 

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Replies 1

Can anyone explain to me why it appears that if an existing business changed hands on March 2 instead of say February 28, that the new employer is not eligible for JobKeeper for his exisiting employees?

 

I have been paying employees from late March to avoid them having to be stood down or terminated, but as I took over the business in March no one at the ATO can tell me if I'm eligible or not! Highly frustrating. Now my only option is to close doors again and fire everyone if no one from the ATO can elaborate. I've been waiting on a call back from a 'specialist' for over a week.

Former Community Support

Replies 0

Hi @AdamW,

I am sorry to hear about your situation and can understand your frustration.

Our FAQs cover this scenario:

Question: The business I work for has changed ownership since 1 March 2020. Am I still an eligible employee?

Answer: Yes, you are still an eligible employee of a business for the purposes of the JobKeeper scheme (if all other conditions are also satisfied). The acquiring entity will be treated as having employed you prior to the business changing owners.

For casual employees, in determining whether you are a long term casual employee (that is, employed by an entity on a regular and systematic basis during the 12 month period ending on 1 March 2020), the time you worked before the business changed ownership is counted.

If the business meets all the other eligibility criteria you can register for JobKeeper payments and nominate the eligible employees, you may also be eligible to nominate yourself as an eligible business participant.

You have until 31 May 2020 to register for payments for March and April. Our JobKeeper guides will take you through the process step by step.

Good luck with everything.