JobKeeper government assistance has been extended for the second time for companies that are qualified. The payment of JobKeeper is extended from 28 September 2020 to 28 March 2021 for qualifying firms.
Again, JobKeeper is making headlines. The first one revealed in March 2020 is the ministerial – level pay by the Australian Government to assist qualifying companies impacted by Covid-19 to pay their workers. After its initial deployment, JobKeeper has been extended by the government for companies that are continuing to minimize turnover due to the pandemic. These extensions are in two periods, ending on 3 January 2021 and 28 March 2021.
Keep reading to learn more about this second extension and STP integration when your company qualifies for the JobKeeper payments from the Australian Taxation Office (ATO).
Key changes you must know: Highlights
- Changes to JobKeeper employee pay rates based on the cumulative hours worked by an employee over a time of reference.
- The JobKeeper payment rate for qualifying employees will be Tier 1 and Tier 2
- The company’s duty to show a comparable reduction in real GST turnover.
Key JobKeeper extension dates for 2021
- 4 January 2021: The second extension cycle begins with JobKeeper
- 28 January 2021: Corporations’ deadline for monthly payment declaration (they have forward the date due to the festive season)
- 31 January 2021: Corporations are due for paying quarterly workers from 4 January 2021 to 18 January 2021. (they have forward the date due to the festive season)
- 1 February 2021: Until the monthly declarations are complete, eligible employers should apply for new revenue declines.
- 28 March 2021: The second JobKeeper extension is shut.
- In the first quarter of each month: You must file a monthly business statement to keep claiming payments from JobKeeper.
- Every first quince of a month: You have to pay employees for the previous month if JobKeeper reports on their behalf.
Business eligibility and decline in turnover tests
Do not forget to consider the JobKeeper extension eligibility test before you go for it.
Following are the things you need to know:
Your company must be able to prove ATO a substantial decrease in its real GST revenues in the quarters of June 2020 and September 2020 to obtain payments from this second extension period.
You can quantify and show a decrease in your company using the basic test or alternative test through a single touch payroll system.
If the present GST turnover decreases 15, 30, or 50%, as compared with the GST turnover on 31 December 2019, the second rise to JobKeeper will be easy to achieve for the quarter ending on 31 December 2020. Please make sure that from 1 February 2021 this form is available on the ATO Business Portal.
Enrolling or un-enrolling in JobKeeper
As long as the respective eligibility conditions are met, the ATO keeps JobKeeper are open to new participants.
If your business is already an active user of JobKeeper, you do not have to re-register the extension.
In case the company first registers in JobKeeper this year. Ensure that you obey the registration measures outlined by ATO once your company and your employees have decided their eligibility.
If you no longer need JobKeeper payments for your organization, you don’t need to formally unenroll; but you may need to adjust your employee or business participant’s status using the JobKeeper code. This is to display your modified eligibility for payment in your STP enabled salary software or JobKeeper report.
Please visit the ATO website or read more from our support article for more information on payments and eligibility of JobKeeper.
Bottom Line
If you want more information and details about the 2nd job keeper extension ruled along with the STP dynamics 365, contact us. Our experts at DHRP can help you through their experience.
