JobKeeper 2.0 – Checklists And Important Dates

26 October 2020

As part of our recent JobKeeper series, our latest brief provides you with some straightforward checklists for those businesses that are either seeking to qualify for the extended JobKeeper scheme or are no longer eligible.

The following checklists will assist you in determining on what you need to do (in some cases before 31 October 2020) whether you are;

1.     New participants;

2.     Existing participants; or

3.     No longer eligible.

NEW PARTICIPANTS

  • Determine if your business meets the eligibility criteria to access the extended JobKeeper scheme.
  • Determine if your business satisfies the original decline in turnover test and either the basic test or alternative tests (NB: eligibility is retested for the 2nd extension period).
  • Identify eligible employees and/or an eligible business participant for the period in which your business is seeking to claim a JobKeeper payment.
  • Determine which payment rate applies to each eligible employee and / or business participant.
  • Obtain a nomination notice from all eligible employees and / or business participant (excluding those sole traders that are nominating themselves and no employees) before claiming the reimbursement.
  • Ensure your Business Activity Statements are lodged and up to date.
  • Decide whether to set up your systems using the ATO’s online systems.
  • Enrol for the JobKeeper scheme and submit the ‘Check decline in turnover’ online form.
  • Notify your employees and business participant in writing that you have elected to participate in the JobKeeper Scheme and the payment rate you have applied.  This must be done within 7 days of notifying the ATO.
  • Satisfy the wage condition for each JobKeeper fortnight.  Ensure that any necessary superannuation obligations are also met.  (NB: For the first two fortnights of the first extension period, employers have until 31 October 20202 to meet the wage condition).
  • Ensure that all Fair Work enabling directions (where required) are carried out in accordance with the Fair Work JobKeeper provisions.
  • Make a Monthly Business Declaration in the first 14 days after the month you are claiming for ends.
  • Keep records of your calculations for the decline in turnover test and the employee / business participant payment tiers.

EXISTING PARTICIPANTS 

  • Retest the decline in turnover test by comparing your actual GST turnover for the September 2020 quarter to September 2019 quarter to show an actual decline in turnover of 30% (or 15% for ACNC registered charities and 50% for large businesses). Consider the alternative tests if the basic test is not satisfied.
  • Identify eligible employees and/or an eligible business participant for the period in which your business is seeking to claim a JobKeeper payment.
  • Determine which payment rate applies to each eligible employee and / or business participant.
  • Ensure your Business Activity Statements are lodged and up to date.
  • Submit the ‘Check decline in turnover’ online form and nominate the payment rates that apply to each eligible employee and / or business participant.
  • Notify your employees and / or business participant in writing of the payment rate applied.  This must be done within 7 days of notifying the ATO.
  • Adjust your payroll function to ensure that top-up JobKeeper payments have been reduced from 28 September 2020 onwards.
  • Satisfy the wage condition for each JobKeeper fortnight.  Ensure that any necessary superannuation obligations are also met.  (NB: For the first two fortnights of the first exertion period, employers have until 31 October 20202 to meet the wage condition).
  • Ensure that all Fair Work enabling directions are carried out in accordance with the Fair Work JobKeeper provisions. (NB: from 28 September 2020, the Fair Work annual leave directions will cease to have effect for all employers regardless of eligibility to the extended scheme).
  • Make a Monthly Business Declaration in the first 14 days after the month you are claiming for ends.
  • Keep records of your calculations for the decline in turnover test and the employee / business participant payment tiers.
Existing registered Sole Traders and Business Participants
  • Check and submit your business’ actual decline in turnover information for each JobKeeper extension period to demonstrate eligibility.
  • Determine the number of hours you were actively engaged in the business for the month of February 2020. A business participant must provide a declaration to the business entity confirming their hours worked over the reference period.
  • Nominate the payment rate that applies to you.
  • Make a Monthly Business Declaration in the first 14 days after the month you are claiming.
  • Keep records of your calculations for the decline in turnover test and how you have calculated your hours worked if you are electing to apply the higher payment tie.

NO LONGER ELIGIBLE

  • Advise your employees in writing that the business is no longer eligible for JobKeeper and that their pay will revert to the conditions that apply under their employment agreement for pay runs post 27 September 2020. There is no requirement to notify the ATO.
  • Adjust payroll to ensure that top-up JobKeeper payments have been removed from 28 September 2020 onwards.
  • Keep all of your records relating to JobKeeper including your calculations and rationale for the decline in turnover test, your employee JobKeeper nomination forms and any other relevant records for at least five year.

LEGACY EMPLOYERS

  • Determine whether you will be required to access the temporary Fair Work JobKeeper enabling directions.
  • Determine if the business satisfies the 10% decline in turnover test for the relevant period (NB: there are 3 periods) to access the Legacy Employer provisions.
  • Obtain a 10% decline in turnover certificate from an eligible financial service provider or if you are small business with less than 15 employees provide a statutory declaration. Click here to read our newsletter on this.
  • Seek employment law advice prior to issuing any employment direction (JobKeeper related or otherwise).
  • Issue JobKeeper enabling directions (if needed and where a certificate or statutory declaration is held at the time the direction or request is given).

JOBKEEPER EXTENSION FORTNIGHTS

The following graphic outlines the payment periods for the JobKeeper 2.0 extension periods.

NEXT STEPS 

We remind you that the JobKeeper Payment will continue to remain open to new recipients, provided they meet the eligibility requirements and the turnover tests that apply during the relevant JobKeeper Payment period. 

  • We encourage those businesses, including those that have not previously qualified for the JobKeeper Scheme, to reconsider whether any employees that have been employed after 1 March 2020, may now satisfy the employee test.
     
  • We also remind you that the eligibility for the JobKeeper Scheme may continue to be assessed until March 2021.  Given this, we recommend that all businesses re-evaluate whether they now (or could potentially) meet the eligibility requirements, under both the existing Scheme and under the extended JobKeeper Scheme.
     
  • As previously communicated, it will be important to document your eligibility to the Scheme and ensure that all initial and ongoing reporting requirements and obligations are met.  Whilst the ATO have advised that they will not seek to recover JobKeeper payments and penalties from those applicants that have made a genuine and honest mistake in assessing their eligibility, this remains an area of increased scrutiny and review and the upmost of care and discretion should be exercised.
     
  • For your ease of reference and for more details as to the various tests on turnover and rules around JobKeeper 2.0 please refer to our past newsletters

WHERE WE CAN ASSIST YOU

If you would like to discuss any matters in this newsletter in further detail, please do not hesitate to contact your Cooper Partners Engagement Team.

This newsletter is current as of 26 October 2020, however, please note that announcements and changes are being made by the Government and the ATO regularly, and we expect that the tax and business-related responses will continue to evolve.  Before acting upon the content of this newsletter, please contact us to discuss how the above applies to your specific circumstances.

This information is general advice only and neither purports, nor is intended to be advice on any particular matter.
No responsibility can be accepted for those who act on the contents of this publication without first contacting us and obtaining specific advice.
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