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Jobkeeper top ups and backpays from prior year

Newbie

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Replies 3

Our client is currently processing backpays which relate to prior to 30 June 2020.

our quetsion is whether the backpay that will be paid in this fortnight will count towards the jobkeeper $1500 minimum payment? 

or will there be a requirement to pay the jobkeeper top up as well?

1 ACCEPTED SOLUTION

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Most helpful response

Former Community Support

Replies 2

Hi @NikiWatson

 

Thank you for your question. Information we have available on our website relating to changes to JobKeeper from 3 August - your eligible employees

 

You said that you are processing backpays. Do you mean that your employee is now eligible because the key date for assessing employee eligibility has changed from 1 March to 1 July? If so, you can read more about this change on this thread: JobKeeper 2.0 - new eligibility date 1st July - date for processing FN10 for new participants

 

Claims only go back to fortnight 10, which started on 3 August 2020, which is when the change becomes effective providing that the newly eligible employee meets the revised 1 July criteria. You can not go back to 1 July, only 3 August. For the fortnights commencing on 3 August and 17 August 2020 (fortnights 10 and 11), you will have until 31 August 2020 to pay new eligible employees $1,500 per fortnight. See our website pay your eligible employees.

  • The amount of $1,500 includes gross salary, wages, commission, bonus payments and allowances, inclusive of PAYG withholding, and any fringe benefits or superannuation contributions provided under an effective salary sacrifice agreement.

For more information on backpay see this thread:  Backpay on JobKeeper

 

Hope this assists you

3 REPLIES 3

Most helpful response

Former Community Support

Replies 2

Hi @NikiWatson

 

Thank you for your question. Information we have available on our website relating to changes to JobKeeper from 3 August - your eligible employees

 

You said that you are processing backpays. Do you mean that your employee is now eligible because the key date for assessing employee eligibility has changed from 1 March to 1 July? If so, you can read more about this change on this thread: JobKeeper 2.0 - new eligibility date 1st July - date for processing FN10 for new participants

 

Claims only go back to fortnight 10, which started on 3 August 2020, which is when the change becomes effective providing that the newly eligible employee meets the revised 1 July criteria. You can not go back to 1 July, only 3 August. For the fortnights commencing on 3 August and 17 August 2020 (fortnights 10 and 11), you will have until 31 August 2020 to pay new eligible employees $1,500 per fortnight. See our website pay your eligible employees.

  • The amount of $1,500 includes gross salary, wages, commission, bonus payments and allowances, inclusive of PAYG withholding, and any fringe benefits or superannuation contributions provided under an effective salary sacrifice agreement.

For more information on backpay see this thread:  Backpay on JobKeeper

 

Hope this assists you

I'm new

Replies 1

Hi,

 

We received job keeper for an employee for the first 13 fortnights, from 30/3 to 27/9.  Our organisation was not eligible for Jobkeeper extension.  During those 13 fortnights, an eligible employee received job keeper top up based on a wage rate we paid them at the time, which we now realise was incorrect and should have been higher.  This would have reduced their jobkeeper topup for all the 13 fortnights, if they were paid the correct rate.  We are calculating their back pay based on the correct rate, and are we able to adjust their fortnightly job keeper top up based on the correct rate being paid? 

ATO Community Support

Replies 0

Hi @FMBWNG

 

A back payment is paid now, even if it relates to a previous time. It is included in the employees salary and wages now, even if it relates to a previous financial year.

 

You don't adjust previous STP pay events (or JobKeeper paid) when you complete a back payment, as the pay event the back payment is included in is the pay event you complete now. It's a separate payment.

 

You can read about out-of-cycle STP reporting (including back payments) on our website.