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When will the ATO tell jobkeeper employers they agree with employee eligibility?

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Hello. 

 

I have a question about the first 2 jobkeeper fortnights. So, ATO might pay you in early may 2020, the funds to reimburse you for the jobkeeper payments you've already made to staff (in anticipation of the ATO paying you back). 

 

I read in the rules that the ATO paying you constitutes notice that the ATO agrees with your assessment of the employee's elgibility to participate in JobKeeper but not in relation to the first 2 fortnights. And that the ATO could technically pay you funds for the first 2 fortnights, but then issue you a notice saying that the ATO later checked things out and doesn't agree the employee is elgiblie (I presume the ATO will then demand payment back). 

 

How and when will an employee know that the ATO agrees with their assessment of the employees who they've already paid $1500 to, in the first 2 jobkeeper fortnights? Surely the employer just doesn't sit there waiting and hoping they don't get a notice of disagreement. Or if that is how it works - what is the cut off date after which you know you wont' get a notice? Section 18(2) of the jobkeeper rules says the ATO will provide a notice ' as soon as practicable after making the decision.' That's a bit vague. 

 

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Hi @sarah1991 

We do understand this can be a difficult time for many, and I understand your concerns.

 

I can assure you that if your business meets the eligibility guidelines and you have enrolled before the end of April, you will receive the payments for April in the first week of May. If you haven’t received your payments by Friday 15 May, you may need to phone us.

 

As @MCA_Accountants advised, you could be required to repay the money if at a later date it is deemed that the business or the employees did not in fact meet the eligibility guidelines.  It is important you continue to make a monthly business declaration to reconfirm your eligibility as an employer and the eligibility of the employees  who you have nominated.

 

Hope this helps you, SueO

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You are responsible for ensuring you meet the criteria... Yes, the ATO can ask for money back if you don't in fact qualify.

 

ATO are busy processing close to a million applications plus doing everything else they normally do... it's a miracle they have been able to provide the amount of clarity they have, don't be surprised if it takes them a while to sort it out.

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I already know that employers have an obligation to try and assess the elgibilty requirements as per the JobKepeer rules. That wasn't my question.

 

I would like to know what information the ATO can provide, about how an employer is meant to know that the ATO agrees that the employee in question is eligbile for JobKeeper for the first 2 fortnights. 

 

Section 17 of the Coronavirus Economic Response Package (Payments and Benefits) Rules 2020  indicate that this notice that they agree is provided via the ATO making the payment to the employer, but only in relation to the 3rd and subsequent jobkeeper fortnights. The first 2 fornights are excluded via section 17(3) of the rules.

 

 

Highlighted

Best answer

Community Support

Replies 0

Hi @sarah1991 

We do understand this can be a difficult time for many, and I understand your concerns.

 

I can assure you that if your business meets the eligibility guidelines and you have enrolled before the end of April, you will receive the payments for April in the first week of May. If you haven’t received your payments by Friday 15 May, you may need to phone us.

 

As @MCA_Accountants advised, you could be required to repay the money if at a later date it is deemed that the business or the employees did not in fact meet the eligibility guidelines.  It is important you continue to make a monthly business declaration to reconfirm your eligibility as an employer and the eligibility of the employees  who you have nominated.

 

Hope this helps you, SueO