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There have been some changes to the JobKeeper employee eligibility rules starting from 3 August 2020. Visit our website for more information or ask a question.

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Job Keeper - Cash flow

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Newbie

Views 394

Replies 4

Hi,

 

1. A business is eligible because their income has dropped by 30%, however they need to pay the employees $1,500 per fortnight, even if their current wage is less than this.

Given the business income has dropped, they don't have the cashflow to pay the employees the required $1,500, therefore under the rules they are no longer eligible.

Is that correct?

 

2. If a business believes they are eligible, so they register and pay their employees the $1,500 per fortnight even the employees who earn less than the $1,500 (say $1,000) and it turns out the employer isn't entitled, who is responsible for the shortfall of $500? does the employee need to pay it back to the employer or is the employer now out of pocket?

 

1 ACCEPTED SOLUTION

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Best answer

Community Support

Replies 3

Hi @Mana80 

 

Thanks for reaching out.

 

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, you may want to speak to your bank to discuss your 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 employees until the scheme is making its first payments.

 

It is best to check that your employees are eligible for the payment before you claim it from the ATO on their behalf. If an employee is ineligible for the payment you will need to notify the ATO. You and your employees will need to complete the JobKeeper employee nomination notice which confirms their eligibility.

 

I hope this helps.

EmilyH

 

 

 

 

4 REPLIES 4
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Best answer

Community Support

Replies 3

Hi @Mana80 

 

Thanks for reaching out.

 

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, you may want to speak to your bank to discuss your 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 employees until the scheme is making its first payments.

 

It is best to check that your employees are eligible for the payment before you claim it from the ATO on their behalf. If an employee is ineligible for the payment you will need to notify the ATO. You and your employees will need to complete the JobKeeper employee nomination notice which confirms their eligibility.

 

I hope this helps.

EmilyH

 

 

 

 

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Newbie

Replies 2

Thanks @EmilyH,

A follow up question, if you are an employee of your own company, (you pay wages, super, workcover, report it in BAS and prepare payment summary’s)
The company income has dropped by 80%, which would make you an eligible employer.
wage prior to the job keeper is less than the $1500 per fortnight, do you now pay yourself the $1500 per fortnight as instructed under job keeper rules like any other eligible employee would be receiving from their eligible employer? (Obviously as before would need to consider the cash flow situation.)

Thanks.
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ATO Certified

Community Support

Replies 1

Hi @Mana80

 

Thanks for getting back to us.

 

We have some information on our website about the JobKeeper Payment for paying your eligible employees that you can look at. We will continue to provide more information, so we recommend that you keep an eye on our website for updates.

 

You must pay the minimum $1,500 before tax to each eligible employee per fortnight to claim the JobKeeper payment for that fortnight. What this means is that if you are an eligible employee of your company, you will also need to pay yourself a minimum of $1,500 before tax per fortnight.

 

Hope this helps. Good luck with it all.

 

Thanks, ChrisR

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Newbie

Replies 0

Thank you.