Jobkeeper Payment Setup
- Rishabh Verma (Deactivated)
EntireHR Jobkeeper Allowances Setup to process payment
Please download the complete setup process having step by step instructions:
Version 2: Created on 23rd April 2020 Jobkeeper Help Manual_Version2.0_Updated on 23042020.pdf
Updates (Please refer FAQ section of the help manual. We have recommended the Jobkeeper setup process, Superannuation & Payroll Tax setup)
** Important Note:
To be able to claim the Jobkeeper payment for the month of April, ATO would like you to pay fortnight 1 & 2 to the members by the end of April i.e. On or before your Superannuation Cut off Date.
Don't forget to verify the tax calculation part for the Jobkeeper members getting paid fortnightly if your normal pay run is on weekly basis. You need to process their tax payment as per fortnight rule otherwise members will get taxed double on the Jobkeeper amount.
Version 1: Created on 19th April 2020 Jobkeeper Help Manual.pdf)
Please download the ATO STP factsheet for reference & scenarios (Recommended for your own understanding):
STP and JobKeeper DSP factsheet.pdf
Please download the ATO Fact sheet supporting business:
Fact_sheet_supporting_businesses_0.pdf
Overview
The Jobkeeper payment period commenced from Monday 30 March 2020 and will apply for 13 full fortnights until Sunday 27 September 2020. The ATO will reimburse participating employers monthly in arrears $1,500 for each full fortnight per eligible employee paid by the employer.
Payroll Cycles
Regardless of the frequency of regular pay cycles or out of cycle pay periods, or the pay period start and end dates, the $1,500 per fortnight applies to the paydays (payment date) within the defined fortnights and from which fixed fortnight the payment applies. Special rules apply for payments within the month of April and for employees receiving monthly pay.
Claim Cycle
Employers will be required to notify the ATO of all eligible employees for which they wish to claim the JobKeeper payment after the last day of the last full fortnight in the calendar month. Employers will also be required to complete a monthly declaration online.
Process Overview
EntireHR - STP – Notify ATO of eligible employees using STP Process.
Eligible employers must pay their eligible employees at least $1,500 per fortnight for paydays on or after 30 March.
For payroll cycles, pay the $1,500 for each fixed JobKeeper fortnightly period where:
· Weekly pays - $1,500 across the paydays within each JobKeeper fortnight period, including any out of cycle payments. Example: if weekly payday is on Wednesdays, then there are 2 paydays (1/4 and 8/4) within Fortnight 01, so total pay per eligible employee must be at least $1,500 for those 2 pays. It may be evenly split ($750/pay) or the second pay must make up at least the total $1,500 ($400 then $1,100)
· Fortnightly pays - $1,500 for the paydays within each JobKeeper fortnight period, including any out of cycle payments.
Jobkeeper Process for Employers
Jobkeeper Payment Scenarios
Frequently asked Questions
Q1. We would like to setup a separate Jobkeeper allowance for the working members as compare to the members who are not working but eligible for the Jobkeeper payment. The reason to do this because we would like to pay Superannuation on the top-up payment to the working members only.
A1. Unfortunately, you will have to setup a Jobkeeper allowance with a description “JOBKEEPER-TOPUP” for ATO to process your Jobkeeper payment claims without any delays. STP process could not allow multiple allowances with same description during submission so it is must to setup a single allowance code with Superannuation ticked as Yes or No for all members eligible for the top-up payment.
Q2. Can I process separate payroll run in EntireHR for the Jobkeeper payment eligible members?
A2. Yes, you can process the separate payroll run for the Jobkeeper eligible members if the week ending date of payroll run is before the Superannuation cut off date for the month.
For Example: Superannuation Cut-off Date is 26th April
Case 1: Payroll Week Ending Date is 19th April.
In this case, it is fine to process the Jobkeeper payroll run having any other week ending date if the selected date is before the Superannuation Cut-off date.
Case 2: Payroll Week Ending Date is 26th April.
In this case, it is must to process the Jobkeeper week ending payroll run at the same time along with normal payroll run. If you choose a date after 26th April, then system will not be able to cut-off the April month superannuation for these members.
Q3. What is the best report to get the list of Members who have worked within the selected period to be able to provide us Member Name, Employee ID & Gross Income?
A3. Payroll History Report in the EntireHR Finance system will produce you the above-mentioned data. It is accessible under Reports -> Payroll -> Payroll History Report -> Summary -> Export to Excel
Q4. Do I have to pay Superannuation on the Jobkeeper payment?
A4. No, you are not required to pay superannuation on the top-up amount.
Q5. Does the payroll tax is applicable on the Jobkeeper payment?
A5. Payroll Tax is state base which is different as per State. We recommend to please contact the department for more information but to our knowledge these are the states have declared exemption from payroll tax: South Australia, Western Australia
SA: https://www.premier.sa.gov.au/news/media-releases/news/jobkeeper-payments-exempt-from-payroll-tax
Q6. What you cannot do?
A6. You cannot claim the JobKeeper payment on behalf of employees who were not paid at least $1,500 (before tax) during each JobKeeper payment period.
You cannot claim the JobKeeper payment in advance. The JobKeeper payment is a reimbursement from us to an employer in arrears, and cannot be paid in advance in any circumstances.
Q7. What is the recommended approach to setup Jobkeeper process within EntireHR for members who are entitled for the full $1500 per fortnight?
A7. Every business is different with its own requirements, so it completely a choice of each individual business to setup Jobkeeper payment according to ATO requirements. We recommend the below setup process to setup Jobkeeper payments within EntireHR: -
Step 1: Setup a new Client by the name “JOBKEEPER” as ADMIN AND SERVICE Location.
Step 2: Setup a new Rate Table by the name “JOBKEEPER”. You can setup a $0 rate for the combination of Qual + Pay Level + Shift Type + Shift Period.
Step 3: Update Finance settings of the client to do the below:-
Attach Rate Table “Jobkeeper”
Payroll Tax Exempt or non-exempt depends on the State requirement.
Step 4: Create a dummy shift for a client “JOBKEEPER” of 1 hour for each member per fortnight. For Example: if you are processing fortnight 30/03/2020 – 12/04/2020 payment then create a shift for any day within this period say every Friday per fortnight.
Step 5: Setup additions of Jobkeeper allowances as per ATO requirements for each Jobkeeper member under Members Module -> Additions and Deductions. For more information, please refer the help manual details mentioned on page 3 & 4.
Step 6: Perform a Pay run every fortnight instead of weekly for all Jobkeeper eligible members getting paid the full $1500 amount or top-up amount. PLEASE NOTE: Income tax calculations vary for the weekly or fortnightly pay run, so we recommend changing the Pay frequency of all these Jobkeeper Members from weekly to fortnightly “under Members – Obligations Tab” before generating payslips or manually update the tax amount.
Step 7: Report to ATO via STP immediately after the completion of pay run.
Q8. How does the system is handling Part Superannuation by following the recommended process?
A8. If you setup JOBKEEPER-TOPUP addition as Super Exempted, then system will calculate superannuation amount only on the shift amount worked by the member but will exempt super calculation on the “Jobkeeper-topup” addition amount.
Q9. How do I report to ATO about a member who is on JOBKEEPER Payment but has earned more than $1500 for a fortnight?
A9. To be able to mark to ATO in that fortnight, Include the “JOBKEEPER-TOPUP” amount as $0.01. This tells to ATO via STP that a person is still eligible for the Jobkeeper payment in that fortnight.
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