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Jobkeeper and permanent employee (paid salary on ABN invoice)

Newbie

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Replies 3

Hello,

We are a regd. not for profit. One of our employees is paid out on an ABN invoice. She receives all other benefits like other PAYG employees in the organisation such as leave entitlements and all that. In fact she is the senior most, directs the core activities and functions of the organisation, is answerable to the board. We have recently increased her pay and also paid her a bonus for her performance.

Can we apply for a Jobkeeper payment for her? Just because she is paid on an invoice, does that render us inelgible to apply for a Jobkeeper payment?

We have experienced a downturn, have applied and are being paid Jobkeeper for the other employees. We are continuing to pay this employee too and we reckon we should be eligible for the Jobkeeper payment for this employee. Please advise.

Thank you.

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Most helpful response

Devotee

Replies 1

If she is an employee, and you have been paying her as such, then she should not be issueing invoices. If she has been treated as an employee (and paid accordingly) she should be added to your STP and you can claim JK for her and she should stop issuing invoices. If she has been paid PAYG, sick leave, annual leave etc, then she is an employee (if questioned by the ATO you may have to show the ATO that she is actually an employee and has been for the required amount of time).

Of course she cannot receive JK via you and also via her sole trader business. She can only get JK from one entity

3 REPLIES 3

Devotee

Replies 0

Firstly, an employee should never be paid on invoice. Apart from workplace laws, there is a requirement to deduct tax from an employees pay.

 

There is no definition of “employee” for the purposes of the JobKeeper rules, therefore the term will take its ordinary, common law meaning.

Most helpful response

Devotee

Replies 1

If she is an employee, and you have been paying her as such, then she should not be issueing invoices. If she has been treated as an employee (and paid accordingly) she should be added to your STP and you can claim JK for her and she should stop issuing invoices. If she has been paid PAYG, sick leave, annual leave etc, then she is an employee (if questioned by the ATO you may have to show the ATO that she is actually an employee and has been for the required amount of time).

Of course she cannot receive JK via you and also via her sole trader business. She can only get JK from one entity

Newbie

Replies 0

Thank you. My assessment too is that she is an employee and should be paid PAYG. I have presented my views to the board and we should make an application for JK.

Thanks again.

Regards

Sid