Last updated on Sep 28, 2020 21:46
Update 21/09/2020 am
JobKeeper 2.0 Release
We will be updating all Customers commencing Friday 25th of September 2020 to version 20.3.02 For those customers that are eligible for Phase 2 this release will include reports to help you identify your eligible employees and also a new field on your employee records to set the applicable Tier 1 or Tier 2 level required for the new JobKeeper identification and reporting. There will also be mass updates available for those customers who have large volumes of employees that they need to update. NB. there is no requirement to send Start Fortnights again for those employees you are continuing to claim for.
For those Customers that are no longer eligible to claim JobKeeper after Fortnight 13, the good news is that you DO NOT NEED TO SEND FINISH FORTNIGHTS to notify the ATO that you are no longer claiming and there is no action required within Infinet Cloud to stop the JobKeeper Topup automation. Provided there has not been any Tier 1 or Tier 2 field set then this will all cease automatically after the last pay dates of Fortnight 13.
This page will be updated again with further instructions for eligible customers after the release so please check back here on Monday 28th September 2020.
Last week the ATO released the new rules for employers. CLICK HERE
Getting ready for JobKeeper 2.0
Assuming you meet the eligibility criteria, there will now be two JobKeeper payment rates. Your company accountant will normally be responsible for determining if you are eligible for JobKeeper 2.0
|Tier 1 rate
|Tier 2 rate
|28 September 2020 – 3 January 2021
|4 January 2021 – 28 March 2021
Employers will need to do the following:
- Review the number of hours worked during the 28 days before the end of the last full pay periods that finished immediately before 1 March 2020 or 1 July 2020.
- When calculating the number of hours include actual hours worked (including overtime hours), and any hours for which the employee received paid leave (including annual, long service, personal carers and other forms of employer paid leave), and any paid absence for public holidays.
- Employees who worked 80 hours or more (in either period) are entitled to Tier 1 payments, all other employees are entitled to Tier 2 payments.
- Special rules apply that allow employers to use an alternative reference period if the 1 March or 1 July period is not representative of the employee's typical work hours.
- Start paying the appropriate rate from 28 September and advise the ATO via STP which tier each employee belongs in.
If you are eligible for JobKeeper 2.0, you will be automatically transferred to the new rules as soon as you report employee tiers to the ATO via STP
- Employers don’t need to re-enrol for the JobKeeper extension if they are already enrolled for JobKeeper for fortnights before 28 September.
- Employers don’t need to reassess employee eligibility or ask employees to agree to be nominated by them as their eligible employer if they’re already claiming for the employees before 28 September.
If you are not eligible for JobKeeper 2.0, stop paying employees JobKeeper payments from 27 September
- Employers don’t need to notify the ATO. You do not need to send a finish code via STP
- The ATO will automatically assume you have left the scheme if you do not advise them of employee tier levels via STP.
If you were not eligible for Jobkeeper 1.0 but are now eligible for Jobkeeper 2.0 you will have to:
- Obtain nomination forms from your eligible employees
- Send start codes via STP for your eligible employees
- Send the ATO the correct tier code for your eligible employees.
Update 27/07/2020 pm
On 21 July 2020, the Australian Government announced their intention to extend the JobKeeper scheme until 28 March 2021. The current scheme will remain in place until 27 September 2020, i.e. FN13. Whilst officially called the “JobKeeper extension” it was almost immediately labelled “JobKeeper 2.0”.
What’s new in JobKeeper 2.0?
Businesses that are currently eligible for the JobKeeper scheme will need to requalify to continue receiving JobKeeper from 28 September 2020 and again in early January 2021. Obviously, if the employer is no longer eligible neither are their employees.
The eligibility criteria for employees remains the same, however there are now two tiers of payment determined by the average hours worked per week in February 2020. Employees who worked less than 20 hours a week on average in the four weekly pay periods ending before 1 March 2020 will receive the lower payment rate.
The rates are:
Full rate per fortnight
Less than 20hrs worked per fortnight rate
28 September 2020
4 January 2021
Whilst not the domain of Payroll, it’s worth outlining the primary eligibility criteria for business. In order to be eligible for the JobKeeper Payment after 27 September 2020, businesses and not-for-profits will have to meet a further decline in turnover test for each of the two periods extension, as well as meeting the existing eligibility requirements for the JobKeeper Payment.
- From 28 September 2020, businesses and not-for-profits will be required to reassess their eligibility with reference to their actual GST turnover in the June and September quarters 2020. They will need to demonstrate that they have met the relevant decline in turnover test in both of those quarters to be eligible for the JobKeeper Payment from 28 September 2020 to 3 January 2021.
- From 4 January 2021, businesses and not-for-profits will need to further reassess their turnover to be eligible for the JobKeeper Payment. They will need to demonstrate that they have met the relevant decline in turnover test with reference to their actual GST turnover in each of the June, September and December quarters 2020 to remain eligible for the JobKeeper Payment from 4 January 2021 to 28 March 2021.
What has remained the same?
- The eligibility rules for employees remain unchanged and will be the same as the current JobKeeper scheme.
- Employers are still required to make payments to employees equal to, or greater than, the amount of the JobKeeper Payment (before tax), based on the payment rate that applies to each employee. Also known as the ‘wage condition’, the JobKeeper Payment will continue to be made by the ATO to employers in arrears.