If your employer has told you they intend to claim the Jobkeeper Payment on your behalf and you’re wondering what that means, this blog from Stellar Account’s CPA Debbie Hoffman outlines some important information about the Jobkeeper scheme for employees.
The payment scheme will allow some businesses struggling from the impacts of Coronavirus to keep their employees.
Most importantly – your employer can’t claim the payment on your behalf if you don’t agree to be nominated, or if you don’t return your nomination notice by the end of April.
Jobkeeper Payment Scheme: Are you an eligible employee?
As outlined by the ATO, you are an eligible employee if you:
- Were 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) as at 1 March 2020 and not a permanent employee of any other employer.
- Were at least 16-years-old on March 1 2020
- Are employed by the eligible employer at present (even if you were stood down or re-hired)
- Are an Australian resident (within the meaning of the Social Security Act 1991) or an Australian resident for the purpose of the Income Tax Assessment Act 1936 and the holder of a Subclass 444 (Special Category) visa as at 1 March 2020.
- Did not receive government parental leave or Dad and partner pay under the Paid Parental Leave Act 2010 or a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work, during the JobKeeper fortnight
When your employer can’t claim the Jobkeeper payment on your behalf
Employers can’t claim for employees who:
- Have been nominated or agreed to be nominated by another employer
- Have left their business before March 1
- Were first employed after March 1
- Don’t meet the eligibility criteria
- Don’t agree to be nominated
- Don’t return their employee nomination notice by the end of April
Note: Your workplace may not be eligible for Jobkeeper if the business has not reported a drop in revenue.
Frequently Asked Questions About the Jobkeeper Payment
How will I receive the Jobkeeper payment?
You will receive the payment from your employer, who will then be reimbursed by the ATO.
Why did I get paid less than $1,500?
While the payment is $1500, tax will be withheld, so you may receive less than that amount.
What steps can I take to help my employer claim the payment on my behalf?
- Check you are eligible.
- Discuss the scheme with your employer and tell them if you’re happy for them to claim the payment for you (subject to the business being eligible including drop in revenue).
- For those who have multiple jobs, choose one employer who you want to claim the payment for you. Let them know you have chosen them, and tell your other employers that you have already nominated an employer for the payment.
- Complete an employee nomination notice and return it to your employer.
- If you’re already receiving or applying for a Services Australia income support payment, you will need to keep Contact Services informed if your employer has applied for the Jobkeeper scheme.
What if I’ve been stood down or had my hours reduced?
For your employer to receive the payment they must pay you at least $1,500 a fortnight before tax, even if you’ve been stood down or your hours have been reduced.
What happens if I usually earn more than $1,500 a fortnight?
Depending on your workplace arrangements you may continue to receive your normal income. The payment from the ATO aims to subsidise part of your income.
What if I normally earn less than $1,500 a fortnight?
To receive the payment an employer must pay eligible employees at least $1,500 a fortnight before tax.
I have more than one job, can I receive more than one payment?
An employee can’t receive a JobKeeper payment from more than one employer.
Are casual employees eligible for the payment?
Casual employees aren’t eligible for the payment, unless they were employed on a regular basis for at least 12 months at March 1.
Enrolling for the Jobkeeper Payment Scheme
Employees must complete an employee nomination notice, and return it to their employer by the end of April.
From April 20, employers will be able to enrol for the scheme online via the ATO website.
Eligible employers will receive the first payments in the first week of May.
Important information about the Jobkeeper scheme for employees
Stellar Accounts is Brisbane’s leading small and new business accounting firm. We have a reputation for simplifying your accounting, tax and bookkeeping needs so you don’t need to stress or worry.
With more than 20 years’ experience across a wide array of industries – our clients (typically small and medium sized businesses) – gain a distinct advantage over their competitors because we keep them in the loop of the latest information and regulatory requirements. Call us on 0428 887 104.
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