Useful information and resources on COVID-19 – JobKeeper Payment

Over the course of a few weeks nearly everyone’s business and life has been turned upside down. It’s been a crazy time with toilet paper shortages, businesses forced to close, an overload of information (and mis-information on social media). With the recent disruption in mind, we wanted to help support you however we can.

We’ve seen a number of our clients already impacted by the virus and decided to put together some COVID-19 Resources to help you out.

We’re always watching the constantly changing situation, especially in relation to government packages for businesses and employees. We’ll be regularly updating this page to keep you informed, so please feel free to bookmark it.

Take a browse of the attached flyer. To summarise the key points for you:

  • You must demonstrate your income has (or will) drop 30% or more. Comparison on numbers from a previous period (minimum of 1 month).
  • You will receive a payment of $1,500/fortnight per employee (including all directors receiving a wage) for a maximum of 6 months
  • Commences 30 March 2020, but first payment won’t be received until first week May 2020 (it will be backdated to 30 March 2020)
  • You will receive the payment monthly in arrears
  • Applies to full time, part time and casual staff. Casual staff must have had regular employment with you for a minimum of 12 months.
  • Staff can only get this support payment from one employer. Typically, it is the employer they have elected to apply the tax free threshold on their TFN declaration form.
  • For any staff (including casuals) that were in the past earning less than $1,500/fortnight, you will increase their pay to $1,500/fortnight to match what you are receiving from the government.
  • For any staff earning more than $1,500/fortnight, their pay will not change. Instead, the payment will help relieve your cashflow pressure to cover the wages.
  • You need to withhold tax on these payments
  • For staff that you are now paying more, to take their payments up to $1,500, you do not need to pay superannuation guarantee on these payments if you don’t wish.
  • If you have to let any staff go and they do not find work elsewhere (and they don’t apply for JobSeeker), you can continue to pay them the JobKeeper Payment of $1,500/fortnight (ie, keep them on your payroll). These staff must have been on your books at 1 March 2020 to be eligible for this.

JobKeeper Payment – Information for employers

We suggest you register your interest for this payment if you haven’t done so already. You can register your interest here so the ATO can update you once the application forms are available for completion. Please get in touch with us if you have any questions.

All the best.

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