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JobKeeper - does it attract PAYG withholding tax?

Newbie

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Hi; re the new job keeper allowance. Is the amount deemed as taxable income to the employee ?  and also if the employee is to reveive $1500 as a minimum per fortnight  does the employer have to send the ATO PAYG withholding tax on that $1500...for example employee receives the $1500 from employer ( after employer has received it from ATO)..the whole $1500 goes to employee and then the employer has to use tax tables and send PAYG tax to ATO on bas statement.....this would mean that employers who pay their employess less than the $1500 normally now have to 'find' more money to pay tax to ATO?

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ATO Certified Response

Former Community Support

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Hi @RAG 

 

Yes, the $1,500 job keeper payment will be taxed and reported to the ATO as normal. It is like being paid through your normal payroll system.

 

We are currently working out the finer details and should have more information available soon.  Keep checking our Knowledge Base articles and website for updates.

 

You can take a look at the Department of Treasury’s Employer factsheet on the recent Job Keeper payment for more information.

 

I hope Ive been able to answer your question.

 

MichelleR

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Most helpful response

ATO Certified Response

Former Community Support

Replies 0

Hi @RAG 

 

Yes, the $1,500 job keeper payment will be taxed and reported to the ATO as normal. It is like being paid through your normal payroll system.

 

We are currently working out the finer details and should have more information available soon.  Keep checking our Knowledge Base articles and website for updates.

 

You can take a look at the Department of Treasury’s Employer factsheet on the recent Job Keeper payment for more information.

 

I hope Ive been able to answer your question.

 

MichelleR

Newbie

Replies 0

so, it attracts PAYG tax but you take it out of the $1500 you get from the ATO