Announcements
Looking for information on the JobKeeper extension? Watch the video in our latest news article.

ATO Community

Payment of Jobkeeper Allowance

Highlighted

Initiate

Views 282

Replies 1

Hello

When do eligible employers need to pay the Jobkeeper allowance to their employees? My understanding is the allowance is payable from the 1st of March. My worry is employers will not be compensated for the allowance until May. For most employers this is not a problem as the employee would normally be recieveing their normal pay (likely over $1500 per fortnight anyway.) I have a scenario where an employer that employs a number of junior casual employees that normally only earn between $300 - $500 a fortnight. This employer has now been told that she must pay these employees $1500 a fortnight if she is an eligible employer. The trouble is now that she needs to find $90,000 to pay these employees the extra money before she will get the refund. She is also concerned what happens if she is not seen as an eligible employer (her profits have dropped by 30% but very borderline and may change.) This could put her out of business altogether.

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Most helpful response

Devotee

Replies 0

Unfortunately yes they need to pay the eligible employees before the end of April to recieve the first payments in early May. I think this is why the Job Keeper payment is optional for employers. With regards to the turnover test i have read on the Treausury website that there will be some tolerance where employers, in good faith, estimate a 30 per cent or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall. It sounds like the employer is really trying to do the right thing. I know that banks are offering business loans and deffering repayments for the first 6 months. I realise this isnt idea for future cash flow normally let alone at the moment but it might be one option to help them out initially 

1 REPLY 1
Highlighted

Most helpful response

Devotee

Replies 0

Unfortunately yes they need to pay the eligible employees before the end of April to recieve the first payments in early May. I think this is why the Job Keeper payment is optional for employers. With regards to the turnover test i have read on the Treausury website that there will be some tolerance where employers, in good faith, estimate a 30 per cent or more or 50 per cent or more fall in turnover but actually experience a slightly smaller fall. It sounds like the employer is really trying to do the right thing. I know that banks are offering business loans and deffering repayments for the first 6 months. I realise this isnt idea for future cash flow normally let alone at the moment but it might be one option to help them out initially