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JobKeeper Payment Subsidy

Under the JobKeeper Payment, businesses impacted by the coronavirus will be able to access a subsidy to continue paying their employees.

06/05/2020

Fair Work annual wage review decision delayed

The current COVID-19 pandemic has impacted the timetable for the Fair Work Commission’s annual wage review decision.

Each year, the wage review decision sets the national minimum wage and the minimum wages set out in the modern awards, effective from the first pay period on or after 1 July that year.

Usually, the Fair Work Commissioner’s decision is handed down in May each year. However, this year the Fair Work Commissioner has extended its timetable due to the impacts of the COVID-19 pandemic.

At present, final consultations for the annual wage review decision are due to take place on 10 June 2020.

To view the Fair Work Commission’s timetable for the Annual Wage Review, please visit:

https://www.fwc.gov.au/awards-agreements/minimum-wages-conditions/annual-wage-reviews/annual-wage-review-2019-20/timetable

The post Fair Work annual wage review decision delayed appeared first on TAPS

06/05/2020

Payroll Tax treatment of JobKeeper Payments

A question on the minds of many people who deal with payroll tax is whether the Commonwealth JobKeeper subsidy payments are liable for payroll tax?

This is a complex situation, as there is no consistent approach across the states, but here is a quick summary.

In NSW, VIC, QLD, ACT and NT:

  • JobKeeper payments are still payroll taxable
  • When calculating interstate wages use the actual taxable wages declared in each state (keeping in mind SA, WA and TAS have excluded JobKeeeper payments from their taxable wages).

In SA and WA:

  • The full $1,500 per fortnight subsidy is exempt from payroll tax
  • When calculating interstate wages use the actual taxable wages declared in each state (keeping in mind SA, WA and TAS have excluded JobKeeeper payments from their taxable wages).

TAS:

  • The full $1,500 per fortnight subsidy is exempt from payroll tax
  • When calculating interstate wages- For SA and WA use the actual wages declared, as JobKeeper payments have already been excluded- For NSW, VIC, QLD, ACT and NT you will need to use a notional figure and reduce the actual taxable wages declared by excluding JobKeeper payments.

The JobKeeper payroll tax exemption:

The full $1,500 per fortnight subsidy is fully exempt from payroll tax in SA, WA and TAS. This means:

Employees with wages higher than the JobKeeper Wages

Where an employee receives a higher fortnightly wage than the JobKeeper Wages, tax must be paid on the amount of the wage that exceeds the JobKeeper Wages. Payroll tax is not payable on the portion of the wage that is the JobKeeper Wages.

For example, an employee is receiving wages of $2,000 per fortnight. Payroll Tax is waived on $1,500 JobKeeper Wages but is payable on $500. Only include $500 in the monthly return.

Employees with usual wages lower than the JobKeeper Wages

Where an employee usually receives a fortnightly wage lower than the JobKeeper Wages, and is now paid an amount equivalent to the JobKeeper Wages, payroll tax is not payable on the full amount of their $1,500 fortnightly wage. Do not include the $1,500 payment in the monthly return.

Employees who have been stood down

Where an employee usually receives a higher fortnightly wage than the JobKeeper Wages but now is only paid the amount equivalent to the JobKeeper Wages, tax is not payable on the full amount of their $1,500 fortnightly wage. Do not include the $1,500 payment in the monthly return.

For a summary of all payroll tax relief measures in response to the COVID-19 crisis offered by the various jurisdictions please visit www.payrolltaxsolutions.com.au, the article is available for download and is updated regularly.

The post Payroll Tax treatment of JobKeeper Payments appeared first on TAPS

06/05/2020

New JobKeeper Nomination form

From May 11 (FN04), for 16 and 17 year olds:

  • If you are a full-time student you cannot claim JobKeeper unless you are also independent
  • All part-time students can claim JobKeeper (you do not need to worry about the “independent” criteria)
  • If you are not a student you can claim JobKeeper (you do not need to worry about the “independent” criteria)

The ATO has released a new version of the JobKeeper Nomination form here:
https://www.ato.gov.au/Forms/JobKeeper-payment—employee-nomination-notice/

The post New JobKeeper Nomination form appeared first on TAPS

29/04/2020

ATO Extends JobKeeper payment date

The ATO have announced that employers now have until 8 May to ensure all eligible employees have been paid $1500 (before tax) for JobKeeper fortnights 1 and 2 (30 March – 12 April, 13 April – 26 April).

If employees are not paid by 8 May, employers will not be able to claim JobKeeper for the first two fortnights.

This extension date allows more time for employers to consider their circumstances and pay staff and still be eligible for those payments.

Employers have until 31 May 2020 to formally enrol to claim the JobKeeper payments for fortnights 1 and 2, however, the sooner an employer pays their staff for those April fortnights and enrols, the sooner the ATO can reimburse them the JobKeeper payments.

Based on this new information, here are the key dates you need to be aware of.

  • From 20 April: Enrol for JobKeeper payment.
  • 4 May onwards: Identify your employees and claim your first reimbursement.
  • By 8 May: Pay your employees $1,500 for each fortnight to claim JobKeeper payments for April.
  • 31 May: Final date to enrol to claim for JobKeeper fortnights in April and May
  • Each month: Reconfirm eligibility.

 

This JobKeeper Webinar was recorded on 29 April 2020 for members of The Association for Payroll Specialists. Visit TAPS for further information

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01/04/2020

JobKeeper Payment Subsidy Announced

On 30th March, the Federal Government announced the introduction of a subsidy program to support employees and business. The JobKeeper Payment is aimed at helping business affected by the Coronavirus to cover the costs of their employees’ wages so that more employees can retain their job and continue to earn an income.

In the context of many discussions, Ascender has had in recent weeks with clients and the challenging times we find ourselves in, Ascender welcomes this announcement as a positive step toward providing much needed support to employees and employers alike.

Consultation with Industry and Government

Ascender staff have been in dialogue with Industry and Government organisations including the ATO, The Association for Payroll Specialists (TAPS) and the Australia Business Software Industry and Association (ABSIA) to better understand the format of the JobKeeper Payment subsidy, and ask the practical questions that will allow us to guide Ascender clients through the process of setting up the required configuration in your Ascender payroll platforms.

What we Know so Far

  • The program is an ‘opt-in’ scheme – employers must assess eligibility through the ATO
  • The program is effective as of 30 March 2020. Any employer who continues to pay employees from this date can be reimbursed back to this date for the prescribed amount.
  • Included will be employees employed as of 1 March 2020. This incorporates employees who have been stood down and/or re-hired employees since that date. Employees hired since 1 March are not included.
  • Eligible employers can expect to receive the first JobKeeper Payment on or around the first week of May.
  • Employees must nominate their primary employer – they can only receive payments from this employer.
  • If an employee is normally paid over $1500 in a fortnight, they should be paid their normal pay. The $1500 will act as a subsidy towards their pay.
  • If an employee is normally paid under $1500 in a fortnight, it is expected that the employer will pay the full $1500 entitlement, with the JobKeeper payment treated as a top-up payment against their ordinary pay – noting this could be a variable top-up payment each pay cycle.
  • Tax should be withheld on payments. The top-up payment is not subject to super, but super payment will be at the discretion of the employer.
  • There will be no change to STP reporting. All payments will be subject to STP reporting.
  • It is envisaged that clients will be required to set up a new pay code in your Ascender payroll system and likely some basic supportive payroll reporting will be necessary

Many Questions Remain Unanswered

The ATO has advised that they are working through a number of clarifications from payroll providers and industry to address outstanding questions. Ascender will continue to work closely with the ATO and industry bodies through this process and advise all clients accordingly. Examples of questions still to answer are:

  • What is the value of the Weekly and Monthly JobKeeper payment
  • Is the payment eligible for Payroll Tax or does it apply into a Workers Compensation levy
  • Should arrears/retro payments into a pay period affect the payment/top-up

Whilst there is a high degree of confidence that the JobKeeper Payment subsidy will commence as intended, Ascender wishes to remind clients that certainty in this regard will only be realised once the relevant legislation is passed.

The following JobKeeper Webinar was recorded on 2 April 2020 for members of The Association for Payroll Specialists. Payroll has never been more complex. Payroll professionals and their employers must deal with ever-changing legislation and regulations. TAPS has been supporting the Australian Payroll community for over 30 years.

For more information, if you or your organisation would like to become a TAPS member Click here

 

This JobKeeper Webinar was recorded on 16 April 2020 for members of The Association for Payroll Specialists. Visit TAPS for further information.

 

 

This JobKeeper Webinar was recorded on 2 April 2020 for members of The Association for Payroll Specialists. Visit TAPS for further information.

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