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JobKeeper Checklist for Businesses

JobKeeper Checklist
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Note: JobKeeper Rules have subsequently been amended to extend eligibility to certain employees from 3 August 2020. The below checklist applies to the periods prior to 3 August 2020. For changes to employee eligibility criteria, refer to Covid-19: JobKeeper 2.0 – New Rates, Eligibility Rules.

To guide you through the process of checking your eligibility and applying for JobKeeper payments, we have prepared this step-by-step JobKeeper Checklist.

You can also download JobKeeper Checklist for Businesses in printable pdf version.

Step 1: Confirm entity eligibility

The Entity:

  • Carried on a business on 1 March 2020
  • Is NOT one of the following:
    • entities subject to the Major Bank Levy
    • government bodies
    • companies in liquidation
    • individuals in bankruptcy
  • Had at least one eligible employee or a business participant
  • Satisfied the basic or the alternative decline in turnover test or the modified test for certain group structures:
    • 30% for businesses with an aggregated turnover of $1 billion or less
    • 50% for businesses with an aggregated turnover over $1 billion

If the entity does not satisfy the decline in turnover from the start of the Scheme (based on months of March or April, or the April-June quarter, whichever is relevant), it may satisfy the turnover test to be eligible for JobKeeper at a later date.

Step 2: Identify ALL Eligible Employees

  • Employed by the entity at any time in the JobKeeper fortnight;
  • On 1 March 2020, was aged 16 or over
  • On 1 March 2020, was either:
    • a permanent full-time or part-time employee, or
    • a long term casual employee (employed on a regular and systematic basis for at least 12 months), and was not a permanent employee of by another entity
  • On 1 March 2020, was an Australian resident or a holder a Subclass 444 visa.
  • Is not in receipt of any of these payments during the JobKeeper fortnight:
    • government parental leave or dad and partner pay
    • workers compensation payment for being totally incapacitated for work
  • For JobKeeper Fortnights beginning on or after 1 May 2020, if the individual was aged 16 or 17 on 1 March 2020, that individual is:
    • independent
    • not undertaking full-time study

Step 3: Employee nomination and registration

  • Identify ALL Eligible employees (employers cannot pick and choose who participates)
  • Collect completed forms from all eligible employees and identify employees who agreed to be nominated to participate in JobKeeper
  • Keep the completed forms for your records
  • Register details of participating employees to the ATO either:
    • via payroll software
    • by manually entering the details through Business Portal
    • by uploading a payload file via Business Portal
  • Notify all individuals in writing within 7 days upon providing details of the individuals to the Commissioner

Step 4: Determine if there is an Eligible Business Participant

  • Is there a qualifying individual based on business participation?
Entity type Qualifying individual
Sole trader The individual
Trust An adult beneficiary of the trust*
Company A shareholder or director of the company*
Partnership A partner in the partnership*

*Limited to one individual per entity

The individual is:

  • Actively engaged in the business
  • NOT an employee of the entity at any time in the JobKeeper fortnight
  • On 1 March 2020, was aged 16 or over
  • On 1 March 2020, was an Australian resident or a holder a Subclass 444 visa
  • Is not an employee of another entity (other than a casual employee) during the JobKeeper fortnight
  • Is not in receipt of any of these payments during the JobKeeper fortnight:
    • government parental leave or dad and partner pay
    • workers compensation payment for being totally incapacitated for work
  • Is not nominated by another entity for Jobkeeper

The entity satisfies integrity rules:

  • Had an ABN on 12 March 2020
  • Had assessable income from business activity in 2018 – 2019 income year OR made a supply in 1 July 2018 – 12 March 2020 period
  • Provided notice to the Commissioner on or before 12 March 2020 showing that it made such income or supply (unless Commissioner approved deferral applies).

Step 4: Nominating Business Participant (other than a sole trader*)

  • The completed form must be kept in entity’s records

*Sole traders provide nomination notice to the commissioner upon enrolment.

Step 5: Enrol for the JobKeeper payment by 31 May 2020

  • Ensure you have myGovID linked to your ABN to access Business Portal
  • Login to the Business Manager Portal and complete JobKeeper enrolment form by 31 May 2020

Step 6: Ensure participating employees are paid on time

  • Pay a minimum of $1500 to ALL eligible employees who agreed to participate for each JobKeeper fortnight you will be claiming payments for, before the end of that fortnight or according to your normal payrun cycle, including employees who are:
    • stood down
    • ordinarily paid less than $1500 per fortnight (need to top up payments to $1500)
    • ceased working and later reengaged (need to pay from the time they are reengaged)
  • If qualifying for JobKeeper Scheme from 30 March 2020, pay all participating employees at least $3000 for the first two fortnights by 8 May 2020 due date.
  • Ensure appropriate PAYG tax amounts are withheld from payments to employees (as payments are passed through as salary or wages)
  • Pay employees minimum Super Guarantee obligations based on Ordinary Time Earnings (paying super on top-up amounts is optional)

Step 7: Monthly reporting (from 4 May onwards)

Each month:

  • Reconfirm the eligibility of your business and your reported eligible employees (no need to re-test turnover decline).
  • Log in to the Business Portal using MyGovID to submit a report:
    • provide your current and projected GST turnover
    • re-confirm your contact and bank details for payment.
    • number of eligible employees for each JobKeeper fortnight
    • update on your eligible employees if any of your eligible employees change or leave your employment.

Download JobKeeper Checklist for Businesses to assist you through the process of checking your eligibility and applying for JobKeeper payments

(Updated 7 May 2020)

Need Help?

If you need assistance with checking eligibility, application process and reporting for JobKeeper Payments, we are able to help! Send us an enquiry or call our office to see how we can help.

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Disclaimer:
The current Checklist is designed to assist you through the process of checking your eligibility and applying for JobKeeper payments. It is provided as a guide only and is by no means exhaustive. The information provided in this document does not constitute tax, legal or financial advice. It does not take into account your personal circumstances and is not intended to replace consultation with a qualified professional.

Posted in Small Business, Tax News & Updates

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