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JobKeeper - Registered as business participant but actually an employee

Enthusiast

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Hi,

 

I have a new client who had registered for JobKeeper before joining our firm. He is the director of his company which only employs one other employee who is not eligible for JobKeeper. He had registered into the JobKeeper scheme as a business participant however he should have enrolled as an employee as he receives annual wages from the company.

 

The company did qualify for JobKeeper correctly and the only problem is the way that he has claimed for JobKeeper.

 

How do we correct this going forward and what will the repercussions be?

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Most helpful response

Former Community Support

Replies 0

Hi @Estee_F 

Thanks for reaching out.

 

On our website under JobKeeper payment - Partnerships, Trusts and Companies

Work out if you have an eligible business participant:

    An individual may be an eligible business participant of your entity for the fortnight if they meet all the following:

    -They're not employed by your entity.

 

Therefore, as you advise he is employed by the business, he should claim as an employee (provided both he and the business satisfy the eligibility criteria).

 

To amend the JobKeeper application forms for the requisite months, you can contact us, or contact us here if you are a tax agent or BAS agent, and we can amend the forms for you. This would be a non-financial amendment as the amounts would remain the same.

 

Going forward, lodge the monthly forms for the director as an employee.

 

Eligibility for JobKeeper payments is a self-assessment process so it’s your responsibility to check with your employees that they meet the eligibility requirements before you pay them. The ATO conducts reviews to check the eligibility of claims. If the entity is chosen for review, we will contact the entity for an explanation of the circumstances.

 

I hope this assists you.

 

 

 

 

1 REPLY 1

Most helpful response

Former Community Support

Replies 0

Hi @Estee_F 

Thanks for reaching out.

 

On our website under JobKeeper payment - Partnerships, Trusts and Companies

Work out if you have an eligible business participant:

    An individual may be an eligible business participant of your entity for the fortnight if they meet all the following:

    -They're not employed by your entity.

 

Therefore, as you advise he is employed by the business, he should claim as an employee (provided both he and the business satisfy the eligibility criteria).

 

To amend the JobKeeper application forms for the requisite months, you can contact us, or contact us here if you are a tax agent or BAS agent, and we can amend the forms for you. This would be a non-financial amendment as the amounts would remain the same.

 

Going forward, lodge the monthly forms for the director as an employee.

 

Eligibility for JobKeeper payments is a self-assessment process so it’s your responsibility to check with your employees that they meet the eligibility requirements before you pay them. The ATO conducts reviews to check the eligibility of claims. If the entity is chosen for review, we will contact the entity for an explanation of the circumstances.

 

I hope this assists you.