On 30 March, the Federal Government revealed the JobKeeper Program in an effort to incentivise employers to keep workers in employment for as long as possible. See the Government’s Treasury website and the ATO website for a complete overview.
Update: 24 September 2020
We have updated our JobKeeper pay run actions in accordance with the new requirements of the JobKeeper extension - ie JobKeeper 2.0. The updates include:
- The addition of start and finish fortnights 14 to 26;
- The addition of tiers 1 and 2 which need to be reported (once) for each eligible employee;
- The ability to correct a tier if it has been initially reported incorrectly.
Read our support article for more detail on the updates.
Update: 7 August 2020
On 7 August 2020, the Australian Government announced changes to the JobKeeper Payment program. Effective 3 August 2020, the relevant date of employment will move from 1 March to 1 July 2020, to increase employee eligibility for the existing scheme and the extension. From 28 September 2020, businesses will be required to reassess their eligibility with reference to their actual GST turnover in the September quarter 2020 to be eligible for JobKeeper Payments from 28 September 2020 to 3 January 2021. From 28 September 2020, lower payment rates will apply for employees and business participants that worked fewer than 20 hours per week in the relevant reference period.
Update: 21 July 2020
On 21 July 2020, the Australian Government announced it will be extending the JobKeeper payment until 28 March 2021.
- Existing JobKeeper payments will remain unchanged until 27th September 2020.
- Businesses seeking to extend JobKeeper payments will need to reapply on 28 September for payments until 3 January with evidence of continuing decline.
- Businesses seeking further JobKeeper support from January 4 until 28 March 2021 will need to reapply once again with evidence of previous quarters.
- The payment rate will be reduced each quarter from 28 September. For further details, check out the Treasury website.
KeyPay will be working on updating its existing tools and reports to help ease the workload. This includes updating the JobKeeper employee eligibility report and extending the JobKeeper start/fortnight periods in the pay run, as required.
Update: 24 April 2020
KeyPay has released more helpful features that have further streamlined the overall management process:
- Employee Nomination Notices:
Once you’ve identified eligible employees, it is required that employees obtain and record employee consent before commencing JobKeeper payments.
To assist employers with this, we have created a mechanism where users can bulk publish nomination notices to employees via email. Refer to our JobKeeper Employee Nominations support article for a detailed walkthrough of the setup process.
*Businesses have until 30 April to notify employees and receive completed employee notification forms to be able to claim JobKeeper payments for the month of April.
- Processing JobKeeper Payments in Pay Runs
We added a new pay run action - "Add JobKeeper Payment" - that allows users to perform the 3 JobKeeper options: JobKeeper top-up, JobKeeper start and JobKeeper finish, available via a context panel. The system will then create the relevant JobKeeper pay categories based on the actions performed, thereby ensuring pay category settings are configured in accordance with the ATO's requirements.
Refer to our support article for more details.
update: 14 April 2020
The ATO recently announced special conditions required to report JobKeeper payments via Single Touch Payroll. We've updated our support article on managing JobKeeper payments to reflect the announcement.
update: 9 April 2020
We’ve updated the JobKeeper Eligibility Report, allowing employers to include employee visa information. If you record employee visas using the qualifications feature, you can now add this to the report parameters. The report will then incorporate the visa qualifications to assess employee eligibility and classify them accordingly. Read the updated JobKeeper Eligibility Report support article.
Reminder: the employee eligibility is only part of the JobKeeper eligibility criteria. Be sure to refer to the treasury website for full details.
update: 8 April 2020
On April 8, the JobKeeper program passed into legislation. For eligibility criteria, refer here.
update: 3 April 2020
NEW REPORT: JobKeeper Eligibility Report
The JobKeeper Eligibility Report easily allows employers to determine the eligibility status of their employees. You can access this report within KeyPay by navigating to Reports > JobKeeper Eligibility Report (under the "Employees" list).
- The JobKeeper eligibility report is designed to provide an employer with the information to make an informed decision on which of their employees fit the basic eligibility criteria provided by the government.
- The eligibility of all employees should be manually verified before proceeding to claim the JobKeeper subsidy from the Australian Tax Office.
- The report makes no assumptions about the eligibility of the EMPLOYER to claim the JobKeeper subsidy. This should be determined by the employer.
We’ve summed up the important points from the government’s treasury website in a blog titled “JobKeeper program: Australian Government wage subsidies during COVID-19”.