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JobKeeper - Director of 2 companies

Newbie

Views 1353

Replies 5

Hi ATO,

A client is a director of two companies:

Company A:  He is paid his non-executive director fees through STP and has PAYGW deducted. This company is not elgibile to receive JobKeeper payments

Company B: He is a director/ co-owner of this company. He does not get paid any wages or fees. This company is eligible to receive JobKeeper payments

Can he register as the Eligible Business Participant (EBP) for company B? One of the eligibility requirments for being an EBP is that you can't be an employee of another company. Is he considered an employee of Company A if he is a non-exec diretor receiving fees through their payroll system?  Thanks

1 ACCEPTED SOLUTION

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Most helpful response

Devotee

Replies 4

To assist with this question I would ask is the director a casual employee of Company A or a permanent employee. If Company A records entitlements like annual leave sick leave then the director would be considered permanent employee of Company A and would not be eligible. But if the director is not entitled to any entitlements then the director would be considered a casual employee of Company A. 

 

You can look up definitions on fairwork website. 

5 REPLIES 5

Most helpful response

Devotee

Replies 4

To assist with this question I would ask is the director a casual employee of Company A or a permanent employee. If Company A records entitlements like annual leave sick leave then the director would be considered permanent employee of Company A and would not be eligible. But if the director is not entitled to any entitlements then the director would be considered a casual employee of Company A. 

 

You can look up definitions on fairwork website. 

Newbie

Replies 3

Hi Denz

 

If someone is:

- a sole director of a Pty Ltd company and is the only "employee" and pays them self via PAYG; and

- is a non-executive member of two boards (PAYG monthly with super guarnatee payments) of which:

          the director agreements are for a three year term;

          there are fixed hours each month to attend meetings and to Board matters;

          they are paid a fornightly stipend through Payroll as a casual; and

          tax is being deducted, super payments made an salary sacrifice benefits are included, but there are no leave entitlements.

 

What kind of claim can they make under JobKeeper? My initial thought is they can claim the JobKeeper payment (if they meet the eligibility criteria) as a Pty Ltd company which would be paid to the company itself and then could be utilised to pay the employee/director. As they are also casual for the boards, they would only receive this if the respectiove Board was eligible and had applied to receive the payment and if the Pty Ltd company wasn't already in receipt of payment.

 

Any help regarding the above would be appreciated. 

Devotee

Replies 2

We can rule out eligible participant as the director is employee of all the entities, that leaves you with only an eligible employee option. 

 

I would say it would only be possible as a employee of Pty Ltd only because the other two director jobs are on casual basis no entitlements, even though there is probable no entitlements in Pty Ltd accounted for but on the face of it the director would likely be deemed a permanent employee of Pty Ltd. 

 

If the Pty Ltd is not eligible but both of the other two jobs are eligible I don't belive that director could be eligible as the director would be seen as a permananent employee of Pty Ltd. 

 

 

Newbie

Replies 1

Hi Denz

 

Another thought... could the Pty Ltd employee claim it as self-employed if their other Board work is considered casual? 

Devotee

Replies 0

No because you can't be an employee of your own entity.