As eligible employers transition to JobKeeper 2.0, the ATO has advised important key dates that must be adhered to.
The ATO has advised that not everything needs to be done from this week. From Monday 28th September 2020, employers will need to pay their eligible employees a different rate of JobKeeper, with the rate dependant on the number of hours they work. These rates will change again from Monday 4th January 2021.
It is mandatory to advise employees what rate of JobKeeper they will receive. This must be done within 7 days of notifying the ATO of their payment rate.
Although employers do not need to re-enrol in JobKeeper, you do need to notify the ATO of your eligible employees and what rate you are paying them as part of your normal reporting in October. This will be processed via Single Touch Payroll.
Employers will also need to nominate any new employees if they are applying for a JobKeeper payment for the first time.
As previously advised, employers must meet the reduction in turnover test and advise the ATO before 31 October 2020.
Key Dates to Remember
Notify employees about the JobKeeper payment they will receive.
28 September 2020
Start paying your eligible employees Tier 1 and Tier 2 JobKeeper rates based on their hours worked and paid leave.
From 28 September 2020
Using Single Touch Payroll to notify the ATO of your eligible employees, as part of your normal payday reporting.
Enrol for the JobKeeper payment if you’re doing so for the first time.
Between 1 – 14 October 2020
Complete your October JobKeeper monthly business declarations to receive your reimbursement for the September fortnights.
Between 1 – 31 October 2020
Prepare and submit your businesses actual decline in turnover to the ATO.
Before 31 October 2020
Ensure you meet the wage condition for all eligible employees included in the JobKeeper scheme for the JobKeeper fortnights starting 28 September 2020 and 12 October 2020.
From 1 November 2020
Complete your monthly business declaration and confirm what payment tier you are claiming for each employee.
Below is the relevant media announcement:
FAIR WORK GUIDANCE FOR LEGACY EMPLOYERS
With the extension of the JobKeeper scheme to 28 March 2021, certain employers can use some of the JobKeeper provisions (with some changes) for their previously eligible employees if they:
- previously participated in the JobKeeper scheme, but no longer qualify (or choose not to participate) from 28 September 2020
- can demonstrate at least a 10% decline in turnover for a relevant quarter and get a certificate from an eligible financial service provider or make a statutory declaration if they are a small business employer.
These employers are known as legacy employers.
Legacy employers are different to qualifying employers. Qualifying employers qualify for the JobKeeper scheme and receive JobKeeper payments for their eligible employees.
Under the extended JobKeeper provisions, legacy employers can:
- issue JobKeeper enabling stand down directions (with some changes) e.g. the employer can’t reduce a full-time or part-time employee’s hours of work to less than 60% of their ordinary hours as at 1 March 2020;
- issue JobKeeper enabling directions in relation to employees’ duties and locations of work;
- make agreements with employees to work on different days or at different times (with some changes).
Certificates and statutory declarations
To demonstrate that they meet the turnover test, legacy employers:
- need to get a certificate from an eligible financial service provider that confirms the employer has satisfied the turnover test for the relevant quarter; or
- can make a statutory declaration instead of getting a certificate if they are a small business.
Small business employers can still choose to get a certificate from an eligible financial service provider.
Legacy employers also need to give their employees who are subject to a JobKeeper enabling direction or agreement 7 days written notice about whether:
- they’ve obtained a certificate or statutory declaration for the relevant quarter;
- the JobKeeper enabling direction or agreement will continue or end.
Employers need to get a certificate from an eligible financial service provider that confirms the employer has satisfied the turnover test for the quarter. The certificate is issued under section 789GCD of the Fair Work Act only for the purpose of qualifying for the extended JobKeeper provisions as a legacy employer! The certificate needs to:
- be issued by an eligible financial service provider
- be issued in relation to the employer
- confirm that the employer has satisfied the turnover test for the relevant quarter.
An eligible financial service provider means:
- registered tax agents
- registered BAS agents
- qualified accountants.
An eligible financial service provider can’t be:
- a director or employee of the employer
- an associated entity of the employer
- a director or employee of an associated entity of the employer.
There may be penalties for employers who knowingly provide false or misleading information to the eligible financial service provider, or knowingly make or keep false or misleading employee records.
Small business employers can make a statutory declaration instead of getting a certificate. The statutory declaration needs to:
- outline that the employer has experienced at least a 10% decline in turnover for the relevant quarter
- be completed by an individual who:
- is the employer, or is authorised by the employer
- has knowledge of the employer’s financial matters.
Where can small business employers go to get a Statutory declaration?
The Attorney-General’s Department has information about making a statutory declaration and a downloadable template that employers can use.
Penalties may apply if a person knowingly makes a false statement in the statutory declaration.
After making a valid statutory declaration, the employer should then keep a copy of it.
Information about using the JobKeeper provisions and meeting the 10% decline in turnover test each quarter as a legacy employer are below.
- JobKeeper enabling directions & agreements for legacy employers
- Meeting the 10% decline in turnover test each quarter
It is highly recommended that you seek individual advice from your accountant to ascertain compliance and eligibility to JobKeeper 2.0.