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Re: Job Keeper and annual leave payment on termination /resignation (not an ETP)

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During a JobKeeper fornighnt - 2 weeks

week 1 employee receives $800 Gross and then resigns after being paid

week 2 Finalising entitlements and make one last payment of $2000 for unused Annual leave only (not ordinary wages). No ETP involved.

During the fornight has the $1200 Job keeper wages threshold been met or not?

 

Sorry seen alot of contradictory stuff on the site so would appreciate a clear answer!

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Devotee

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The ATO has just answered this question in another thread

JK forms part of final payment (employee does not get JK + final leave pay etc unless their final amount is more than the JK amount). In your case, you paid the employee $2000 (plus $800) for the final fortnight. This is more than the JK amount of $1200, they therefore do not get any additional payment for JK (the $800+$2000 is all they get). You, the employer, get the JK payment from the ATO (and use that towards the final $2000 that you pay your employee)

https://community.ato.gov.au/t5/COVID-19-response/Resignation-annual-leave-payout/td-p/119333

 

Remember to let the ATO know that the employee has resigned and the effective date, to ensure that the ATO stops JK payments to you in the future

1 REPLY 1

Most helpful response

Devotee

Replies 0

The ATO has just answered this question in another thread

JK forms part of final payment (employee does not get JK + final leave pay etc unless their final amount is more than the JK amount). In your case, you paid the employee $2000 (plus $800) for the final fortnight. This is more than the JK amount of $1200, they therefore do not get any additional payment for JK (the $800+$2000 is all they get). You, the employer, get the JK payment from the ATO (and use that towards the final $2000 that you pay your employee)

https://community.ato.gov.au/t5/COVID-19-response/Resignation-annual-leave-payout/td-p/119333

 

Remember to let the ATO know that the employee has resigned and the effective date, to ensure that the ATO stops JK payments to you in the future