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Re: JobKeeper for part-time, term-time employee who annualises their salary

Newbie

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Replies 3

I’m employed by a school on a part time, term time basis. I do not get paid for school holidays. In order to balance out my income I choose to have my salary annualised, so that I receive a pay every fortnight. My school claims the JobKeeper payment for me and I’m wondering how much they should be paying me during the school holidays (?) Should they be passing on the full payment because they do not pay me for the holidays and JobKeeper is paid for this time? or can they only pay me a “top up” amount because I‘m receiving a pay due to annualising my salary? If I chose not to annualise I would receive no pay during the school holidays. So to clarify, they do not pay me during the school holidays, but I receive my term-time pay spread out evenly across all the pay fortnights of the year. Should I receive the full JobKeeper amount for the school holidays?
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Most helpful response

Former Community Support

Replies 2

Hi @sunflowers 

The requirement for your employer to receive JobKeeper is that they pay you a minimum of $1500 before tax for each JobKeeper fortnight.

So to answer your question, it would depend on the amount that you receive whilst you are on school holidays as part of your annualised salary. If your fortnightly amount from your annualised salary during school holidays is under $1500 before tax, then yes, your employer should 'top up" the amount to be $1500. Otherwise they can't be reimbursed for the $1500 if they don't pay it to you.

We have a how much to pay guide on our website that might help your employer work this out. Basically how it works is this:

  • if you normally receive less than $1,500 in income (before tax) per fortnight, your employer must pay you at least $1,500 (before tax) per fortnight in order to receive the JobKeeper payment. Your employer will likely continue paying you your ordinary income and provide a ‘top-up’ so you receive at least $1,500 (before tax) per fortnight.

  • if normally receive $1,500 or more in income (before tax) per fortnight, you may continue to receive your regular income according to your current workplace arrangements. The JobKeeper payment will assist your employer by subsidising part of your income.

Hope this information helps.

 

3 REPLIES 3

Most helpful response

Former Community Support

Replies 2

Hi @sunflowers 

The requirement for your employer to receive JobKeeper is that they pay you a minimum of $1500 before tax for each JobKeeper fortnight.

So to answer your question, it would depend on the amount that you receive whilst you are on school holidays as part of your annualised salary. If your fortnightly amount from your annualised salary during school holidays is under $1500 before tax, then yes, your employer should 'top up" the amount to be $1500. Otherwise they can't be reimbursed for the $1500 if they don't pay it to you.

We have a how much to pay guide on our website that might help your employer work this out. Basically how it works is this:

  • if you normally receive less than $1,500 in income (before tax) per fortnight, your employer must pay you at least $1,500 (before tax) per fortnight in order to receive the JobKeeper payment. Your employer will likely continue paying you your ordinary income and provide a ‘top-up’ so you receive at least $1,500 (before tax) per fortnight.

  • if normally receive $1,500 or more in income (before tax) per fortnight, you may continue to receive your regular income according to your current workplace arrangements. The JobKeeper payment will assist your employer by subsidising part of your income.

Hope this information helps.

 

Newbie

Replies 1

I am the Payroll Officer in a school and I interpreted the ATO information very differently from this response as it penalises employees who have chosen to take annualised pay. Also, it clashes with this paragraph about monthly pay from  https://www.ato.gov.au/General/JobKeeper-Payment/Payment-rates/Paying-your-eligible-employees/#Howmu... which refers to allocating the minimum of $3000 per month evenly across two fortnights and "circumstances where that allocation is not reasonable (for example because work performed by the employee significantly differed between the two fortnights)." This also clashes with another response from the ATO Community that referred to the difference between pay earned and paid.

Our school has gone to great efforts for our Term Time Only staff to determine the difference between these two amounts each fortnight.

Community Moderator

Replies 0

Hi @AuntyB

 

Thanks for joining the conversation.

 

We understand where you're coming from, however the information in our previous response is correct. To meet your JobKeeper requirements, you need to ensure that your eligible employee is paid at least $1,500 in the JobKeeper fortnight. If they were due to be paid less than $1,500, a 'top-up' is required to ensure that $1,500 has been paid.

 

The key issue with your scenario is working out how much they were due to be paid which is a Fair Work matter. If an employee has chosen to take annualised pay, how much they were due to be paid in a particular fortnight (pre top up) would be different to an employee who hasn't chosen to take annualised pay.

 

You are correct to identify that an employee who has chosen the annualised pay option may end up being paid less overall due to how the $1,500 per fortnight JobKeeper requirement works. It is important to note that the JobKeeper rules don't prevent you from paying them more than $1,500 to make up for that if you want to.

 

The information that you have found regarding paying employees monthly is specific to employers who have monthly payroll cycles. If you pay fortnightly, the information doesn't apply.

 

Good luck with it.