If you are an employer in this challenging COVID-19 landscape you should now be up to speed with the Australian Government’s JobKeeper Package (If not, please see our recent blog).

This week the Australian Taxation Office (ATO) has released a step by step guide on how to enrol and apply for these payments.

Your MGR accountant can advise whether this payment is applicable to your business and help you complete this process. If you choose to try to complete the enrolment yourself please be sure to check your eligibility first by visiting https://www.ato.gov.au/general/JobKeeper-Payment/?=Redirected_URL

How to enrol for the JobKeeper payment (from 20 April onwards)

Step 1 –  Register your interest and subscribe for JobKeeper payment updates via the ATO website.

Step 2 –  Check you and your employees meet the eligibility requirements.

Step 3 –  Continue to pay at least $1,500 to each eligible employee per JobKeeper fortnight (the first JobKeeper fortnight is the period from 30 March to 12 April).

Step 4 – Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf and check they aren’t claiming JobKeeper payment through another employer or have nominated through another business.

Step 5 – Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April. Keep it on file and provide a copy to your MGR accountant.

Step 6 –  From 20 April 2020, you can enrol with the ATO for the JobKeeper payment using the Business Portal and authenticate with myGovID. You must do this by 26 of April to claim JobKeeper payments for April.

Step 7 – In the online form, provide your bank details and indicate if you are claiming an entitlement based on business participation, for example if you are a sole trader.

Step 8 –  Specify the estimated number of employees who will be eligible for the first JobKeeper fortnight (30 March – 12 April) and the second JobKeeper fortnight (13 April – 26 April).

Confirmation of eligible employees you will claim JobKeeper Payment for (available from 4 May 2020 onwards)

Step 1 – Apply to claim the JobKeeper payment by logging in to the ATO Business Portal.

Step 2 – Ensure you have paid each eligible employee a minimum of $1,500 per JobKeeper fortnight before tax.

Step 3 – Identify your eligible employees in the application form by

• selecting employee details that are prefilled from your STP pay reports if you report payroll information through an STP enabled payroll solution, or
• manually entering employee details in ATO online services or the Business Portal if you do not use an STP enabled payroll solution, or
• Contact your MGR accountant who will submit a report on your behalf through Online services for agents.

Step 4 – Submit the confirmation of your eligible employees online and wait for the confirmation screen.

Step 5 – Notify your eligible employees you have nominated them.

Step 6 – The ATO will pay you the JobKeeper payment for all eligible employees after receiving your application.

Step 7 – Each month, you will need to reconfirm that your reported eligible employees have not changed through ATO online services, the Business Portal or via MGR Accountants. This will ensure you will continue to receive the JobKeeper payments from the ATO. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.

Step 8 – If your eligible employees change or leave your employment, you will need to notify the ATO through your monthly JobKeeper Declaration report.

Please note: If you use the ATO Business Portal, you will need a myGovID linked to your ABN in relationship Authorisation Manager (RAM). You can find out how to set this up at ato.gov.au/mygovid

What do you need to do for your employees

• You need to identify which employees you intend to claim the JobKeeper payment for and tell them you intend to claim the JobKeeper payment for them.
• You need to provide these employees with the JobKeeper employee nomination notice and ask them to return it to you by the end of April if you want to claim JobKeeper payment for April.
• If your employees have multiple employers, they can usually choose which employer they want to nominate through. However, if your employees are long-term casuals and have other permanent employment, they cannot nominate you. They cannot receive the JobKeeper payment from more than one employer.
• If an employee is currently receiving an income support payment, they must notify Services Australia of their new income to avoid incurring a debt that they will have to repay.

For further up to date information on the JobKeeper package, including its application to Sole traders and other entities, Eligibility and Turnover tests, please visit https://www.ato.gov.au/general/JobKeeper-Payment/?=Redirected_URL

We at MGR are here to provide you with professional advice and assistance relating to all COVID-19 economic measures and stimulus support. Our expert team of accountants can help guide you through this process so you are confident you are doing everything right for your business and employees.

Call us today on (03) 5443 8888 or email us at mgr@mgr.com.au.