JobKeeper Payments as at 7 April 2020

Rudd Hannay Accountants • April 6, 2020

IMPORTANT INFORMATION -
JobKeeper Payments
as at 7 April 2020

Below is some important information about the JobKeeper Payments. To receive the full benefit of the JobKeeper Payments, you will need to ensure eligible employees are paid at least $1,500 prior to 12 April 2020.

Payments to Employees Must be Made by 12 April 2020

In addition to the eligibility requirements as previously advised, employers must ensure gross wages of at least $1,500 per fortnight ($1,308 net, $192 PAYGW) have been paid to each eligible employee in the fortnight from 30 March to 12 April 2020, and each fortnight thereafter. If the minimum amount ($1,500) is not paid, then no reimbursement from the Government will take place at the end of the month relating to that fortnight. This is a requirement of the JobKeeper Payment.

If the business has employees who were stood down and you wish for them to receive the JobKeeper Payment, they must be paid by the business prior to 12 April for the business to qualify for the first monthly reimbursement from the Government.

If the first payment to the employee is not made in time, and the business makes a payment in the second fortnight, the business will only qualify for the reimbursements of payments that have been made. This is limited to $1,500 per employee per fortnight with no catchup possible.

In a nutshell, the business needs to essentially fund one month's worth of wages for all employees who are eligible for the reimbursement. The Government will then reimburse the business at the end of the month, and the cycle continues.

Payments for Owners of Businesses that Don't Receive Wages

In addition to the eligibility requirements as previously advised, the following will apply where there are no wages payments for owners, but where profit is distributed instead:

Company - only 1 shareholder / director can receive, where that person works in the business and they don't receive a wage.
Trust - only 1 individual beneficiary can receive, where that person works in the business and they don't receive a wage.
Partnership - only 1 individual partner can receive, where that person works in the business
Sole Traders with ABNs - 1 person if they meet the business and employee eligibility requirements

We have developed a guide to the JobKeeper Payments that will assist businesses in calculating the amount they have to pay employees and the amount they will be entitled to for reimbursement. We have tried to keep the cost of this to a minimum so we can assist as many businesses as possible. If you would like a copy of the guide, please let us know.

These measures are due to pass Parliament on Wednesday (8/04/2020). We will provide updates as needed.

If you have any questions or concerns, please don't hesitate to contact one of the team or myself.

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