Managing the JobKeeper Payment – Your Payroll Australia

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.

Prior to 28 September 2020, the JobKeeper Payment was $1,500 earnings (before tax) per fortnight, paid to the employer as a supplement to assist with the payment of salary and wages. The JobKeeper scheme has been extended from 28 September 2020 until 28 March 2021 and contains two separate extension periods. The rate of the JobKeeper payment in each extension period will depend on the number of hours an eligible employee works, or an eligible business participant is actively engaged in the business.

This article will outline the important dates for both JobKeeper 2.0 and 1.0, and a few common scenarios. It includes:

Extension periods for JobKeeper2.0
JobKeeper 2.0 fortnights
Important Dates
- Jobkeeper 2.0 - Extension 1 period
- JobKeeper 1.0 dates
How do I record JobKeeper Payments scenarios
Frequently asked questions

In addition to this article, we have created the following articles in order to help you process any JobKeeper requirements:

Extension periods for JobKeeper 2.0

There are two separate extension periods for JobKeeper 2.0. For each extension period, an additional actual decline in turnover test applies and the rate of the JobKeeper payment is different.

The first quarter of the extension period runs from 28 September 2020 to 3 January 2021, comprising 7 fortnights of:

Tier 1: $1,200 per fortnight for those working 80 hours or more in any reference period; and
Tier 2: $750 per fortnight for those working fewer than 80 hours in any reference period.

The second quarter of the extension period runs from 4 January 2021 to 28 March 2021, comprising 6 fortnights of:

Tier 1: $1,000 per fortnight for those working 80 hours or more in any reference period; and
Tier 2: $650 per fortnight for those working fewer than 80 hours in any reference period.

N.B: Employers do not need to re-enrol to continue claiming payments during the extension period if they are already enrolled in JobKeeper. They just need to check their continuing eligibility and submit this information to us online from 1 October 2020.

JobKeeper 2.0 fortnights

Here is a list of payment deadline dates you will need to meet in order to be able to claim JobKeeper 2.0 for each fortnight starting 28th September:

Important Dates

Jobkeeper 2.0 - Extension 1 period

28 September 2020: The JobKeeper extension 1 period starts and the payment rates change for your eligible employees. The first extension covers the JobKeeper fortnights between 28 September 2020 and 3 January 2021. 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.

You'll also need to:

Show that your actual GST turnover has declined in the September 2020 quarter relative to a comparable period (generally the corresponding quarter in 2019). See the actual decline in turnover test.
Have satisfied the original decline in turnover test. However, if you were entitled to receive JobKeeper for fortnights before 28 September, you have already satisfied the original decline in turnover test. If you are enrolling in JobKeeper for the first time from 28 September 2020, if you satisfy the actual decline in turnover test, you will also satisfy the original decline in turnover test (except for certain universities). You can enrol on that basis.
Tell the ATO whether the tier 1 (higher) or tier 2 (lower) payment rate applies to each eligible employee, eligible business participant or eligible religious practitioner. If you are already enrolled in JobKeeper and eligible for the extension, you do this in your business monthly declaration in November. You must also tell your eligible employees, eligible business participant or eligible religious practitioners which payment rate applies to them within 7 days of notifying the ATO of their payment rate.

30 September 2020: Enrolments close for September fortnights

To claim payments for the September JobKeeper fortnights, you must enrol by 30 September.

This can be done via the following platforms:

ATO Business Portal. To use the Business Portal you will need a myGovID linked to your ABN in relationship Authorisation Manager (RAM). You can find out how to set this up at ato.gov.au/mygovid.
Online Services for Agents (for registered tax/BAS agents). Your registered tax or BAS agent can enrol, identify and declare for JobKeeper on your behalf.
Online Services for Individuals (for sole traders).

Click on this link to the relevant page on the ATO website for step by step instructions on how to enrol.

Between 1 and 14 October 2020: Complete the October JobKeeper monthly business declaration

This needs to be so that you can be reimbursed for September fortnights.

You must identify your eligible employees, eligible business participant or eligible religious practitioners each month before making your business monthly declaration.

Make your business monthly declaration between the 1st and 14th of each month to claim JobKeeper payments for the previous month. For example, to be reimbursed for JobKeeper payments paid to your employees in August you should complete your declaration by 14 September.

Between 1 and 31 October 2020: Check and submit the business actual decline in turnover to the ATO

This can be done online to be eligible for JobKeeper extension 1. See, actual decline in turnover test.

31 October 2020: Wage condition for JobKeeper extension 1

You have until 31 October 2020 to pay employees for JobKeeper fortnights ending in October

Between 1 and 14 November: Complete a monthly business declaration

You need to tell the ATO the payment tier being claimed for each eligible employee.

You must identify your eligible employees, eligible business participant or eligible religious practitioners each month before making your business monthly declaration. You can do this using the eligibilty report.

JobKeeper 1.0 dates

By 30 April: Notify employees and receive completed employee notification forms

Before you enrol to receive JobKeeper payments, you need to notify each eligible employee that you intend to nominate them as eligible employees under the JobKeeper Payment scheme. You must tell those employees that you have nominated them as an eligible employee to claim the JobKeeper payment. They must agree to be nominated by you by completing the JobKeeper employee nomination notice and returning it to you for your records.

The nomination form does not need to be provided to the ATO, however employers are required to keep a copy of the completed form as part of their record keeping obligations under the law.

To determine eligibility, download the JobKeeper Eligibility Report in Employee Reports. This information will need to be provided to the ATO on a monthly basis, including the number of eligible employees employed by the business.

From 20 April: Enrol for JobKeeper payment

This can be done via the following platforms:

ATO Business Portal. To use the Business Portal you will need a myGovID linked to your ABN in relationship Authorisation Manager (RAM). You can find out how to set this up at ato.gov.au/mygovid.
Online Services for Agents (for registered tax/BAS agents). Your registered tax or BAS agent can enrol, identify and declare for JobKeeper on your behalf.
Online Services for Individuals (for sole traders).

Click on this link to the relevant page on the ATO website for step by step instructions on how to enrol.

By 8 May: Pay your employees to claim JobKeeper payments for April

You must enrol before 31 May to claim JobKeeper payments for the period of April and May. Enrolment is as per the details provided above.

If you have not already paid your employees for April it is now too late to claim for April payments as this deadline has passed. The deadline dates for later fortnights are as per the table below or click on this link to the ATO website.

The method of paying staff is provided further below in "Reporting JobKeeper Payments via STP".

You can only claim JobKeeper payment for eligible employees if you pay the $1,500 per fortnight (before tax) to each eligible employee.

These payments should be reported to the ATO via Single Touch Payroll (STP). Instructions on how to correctly report via STP are provided further below.

If your employees receive the JobKeeper Payment, this may affect their eligibility for payments from Services Australia as they must report their JobKeeper Payment as income.

By 31 May: Last date to enrol for JobKeeper payment

Initial deadline date for enrolment was 30 April to claim JobKeeper payments for the period of April. This deadline has now been extended by the Commissioner which means that employers have until 31 May to enrol for JobKeeper.

If you enrol by 31 May you will still be able to claim for the fortnights in April and May, provided you meet all the eligibility requirements for each of those fortnights. This includes having paid your employees by the appropriate date for each fortnight.

Enrolment is as per the details provided above.

From 4 May & onwards: Submit monthly declaration and notify ATO of turnover

Each month, you must reconfirm the eligibility of your business and your reported eligible employees. You must also provide information as to your current and projected GST turnover. This is not a retest of your eligibility, but rather an indication of how your business is progressing under the JobKeeper Payment scheme.

You or your registered tax or BAS agent can make the business monthly declaration.

On a monthly basis you must ensure you have paid your eligible employees at least $1,500 per eligible employee per fortnight.

Declarations can be done via the following platforms:

ATO Business Portal. To use the Business Portal you will need a myGovID linked to your ABN in relationship Authorisation Manager (RAM). You can find out how to set this up at ato.gov.au/mygovid.
Online Services for Agents (for registered tax/BAS agents). Your registered tax or BAS agent can enrol, identify and declare for JobKeeper on your behalf.
Online Services for Individuals (for sole traders).

The declaration requires you:

review the number of eligible employees for each JobKeeper fortnight;
update your eligible employees if any of your eligible employees change or leave your employment;
provide your current and projected GST turnover;
re-confirm your contact and bank details for payment.

31 May: Last day to declare

This is the last day that businesses can submit the monthly declaration to the ATO in order to be reimbursed JobKeeper payments made in April and May.

Here is a list of payment deadline dates you will need to meet in order to be able to claim JobKeeper for each fortnight...

How do I record JobKeeper Payments?

Refer to our article Processing JobKeeper payments in the pay run for further information on how this is done.

This section will run through different employee scenarios and what components of JobKeeper to record based on the scenario.

Scenario A: Eligible employee earnings are more than the relevant tier payment rate per fortnight before tax

If the employee’s normal earnings in the pay run will be more than the relevant tier payment rate per fortnight, then continue to pay the employee all earnings and include all entitlements to leave accrual and superannuation as you usually would. There is no requirement here to record a "top-up" as the employee is already earning more than the relevant tier payment rate per fortnight. In this scenario, the only JobKeeper related event you would need to record in the pay run is the JobKeeper fortnight start (only for eligible employees commencing or re-commencing JobKeeper payments on after 28 September 2020). This will then act as a trigger to the ATO notifying them of the fortnight start the subsidy is to be reimbursed to the employer for the eligible employee. To do this in the pay run, click on Actions > Add JobKeeper Payment > select 'JobKeeper start' > then select the relevant fortnight.

To determine what fortnight you commenced paying an employee the JobKeeper payment, refer to the table below and the dates allocated to each fortnight. Cross reference the date you paid the employee with the dates in the table. For example, if you paid an employee the JobKeeper payment for the first time on the 10th of September (ie pay date was 10/9/20), this means the payment was made in FN12:

This MUST be reported for each eligible employee and only needs to be reported once. You must ONLY report employee eligibility start fortnights only if their eligibility commences or re-commences in the extension period, i.e. from 28 September 2020 onwards. You are NOT required to re-report existing eligible employees whose start fortnight has already been reported and still applies.

Scenario B: Eligible employee earnings are less than the relevant tier payment rate per fortnight before tax

If the employee’s earnings are less than the relevant tier payment rate per fortnight, then continue to pay the employee all earnings and include all entitlements to leave accrual and superannuation as you usually would. In this scenario, a "top-up" is required to ensure the employee earns the amount associated with their tier in the fortnight. To do this in the pay run, click on Actions > Add JobKeeper Payment > select 'JobKeeper top-up' > then enter the top-up amount, being the difference between the relevant tier payment rate (or weekly/monthly equivalent) and the employee's normal earnings.

If you have already recorded the employee's fortnight start in a previous pay run, you do NOT need to do this on an ongoing basis. This is only a one-off requirement.

Scenario C: Eligible employee is not working due to a stand down period

If during a stand down period the employee is eligible for the JobKeeper Payment, the employee will be entitled to the full JobKeeper Payment amount of the relevant tier payment rate per fortnight (as they are not being paid during stand down). The employee should also still be accruing leave whilst on stand down. For further information on managing a stand down in the pay run, click here.

To do this in the pay run, click on Actions > Add JobKeeper Payment > select 'JobKeeper top-up' > then enter the relevant tier amount as the top-up amount.

If you have already recorded the employee's fortnight start in a previous pay run, you do NOT need to do this on an ongoing basis. This is only a one-off requirement.

Scenario D: Employee is no longer eligible to receive JobKeeper payments

There are several reason why the employee may no longer be eligible for JobKeeper payments. Some of the reasons include:

Absence due to workers’ compensation;
Paid parental leave;
Cessation of employment; or
Change of citizenship, visa, personal circumstances.

Similarly with the JobKeeper start fortnight, the ATO must be made aware when JobKeeper payments cease for any employee. To do this in the pay run, click on Actions > Add JobKeeper Payment > select 'JobKeeper finish' > then select the relevant fortnight.

To determine what fortnight you ceased paying an employee the JobKeeper payment, refer to the table below and the dates allocated to each fortnight. Cross reference the date you last paid the employee with the dates in the table. Then select the fortnight period after as the employee's fortnight finish period. For example, if you last paid the employee the JobKeeper payment on the 13th of October (ie pay date was 13/10/20), this means the last payment was made in FN15. However, the employee is technically no longer eligible from the FN16 period:

You are NOT required to re-report employees whose finish fortnight has already been reported and still applies. Nor are you required to report a finish fortnight for employees who were eligible for JobKeeper 1.0 payments but are not eligible for JobKeeper 2.0 and so received their last JobKeeper payment in the 13th fortnight. In this instance, simply stop reporting any JobKeeper top up.

Frequently asked questions

How do I bulk import start fortnight / finish fortnights or tiers in the pay run?

If you have many employees being paid the JobKeeper payment and need to process the one-off notification to the ATO using the"JOBKEEPER-START-FNxx" pay category in the pay run OR the required tier assign, you can do this using the pay run import feature.

What is included in "gross earnings" for the purpose of determining earnings?

The below table lists what components are included/excluded from determining gross earnings:

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Here are some examples to illustrate the definition of gross earnings and calculation of top-up amounts:

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I have weekly or monthly pay frequencies, so how do I calculate the required tier payment per fortnight?

For employers that use pay frequencies other than fortnightly, the relevant tier payment rate is broken down as follows:

Weekly pay frequencies: We will use the example of the tier 2 payment rate ($1200) across the pay dates within each JobKeeper fortnight period. For eg, if a weekly pay run has a date paid on Wednesday then there are 2 pay days (1/4 and 8/4) within Fortnight 14. As such, the total pay per eligible employee must be at least $1200 for those 2 pays. It may be evenly split per week, ie $600 per pay, or the second week's pay must make up at least the total $1200, for eg if the employee was paid $400 i the first week, then they must be paid a minimum $800 in the second week.
Monthly pay frequencies: $1200 for each full JobKeeper fortnight within the month. This will be $2400 for each month except August, which includes 3 JobKeeper fortnights. The employer may choose to apply $2600 each month as an average or alternatively apply $2400 per month except for August which would be $3600. N.B. The ATO will reimburse based upon complete fortnights per month, ie a maximum $1200 per month except for August which would be reimbursed at a maximum $3600 per eligible employee.

How do I report JobKeeper payments for closely held employees to the ATO?

As you would be aware, the ATO has provided an exemption of reporting closely held employees via STP for the 2019/20 FY. HOWEVER, if you are processing JobKeeper payments for any closely held employees, you must report this via STP. As such, you will need to deselect the "Closely held employee" checkbox from the employee's Pay Run Defaults screen. This will ensure these employees are reported in STP events. If you have not enabled STP because you only have closely held employees, refer here for instructions on how to enable STP.

Alternatively, if you do not want to report using STP, you will need to do this via the ATO Business Portal. To use the Business Portal you will need a myGovID linked to your ABN in relationship Authorisation Manager (RAM). You can find out how to set this up at ato.gov.au/mygovid.

Already paid employees you want to claim JobKeeper for?

You can no longer enrol for the JobKeeper payment to claim for fortnights ending on or before 30 August 2020.

How do I enter previously paid JobKeeper payments within opening balances?

If you haven't processed any pay runs that includes JobKeeper pay categories prior to adding opening balances, you will not see any field within opening balances that refer to JobKeeper. Without these fields, there is nowhere to add any previous paid JK figures. What you'll need to do it set up the JobKeeper pay categories in the payroll account manually, then they will show up in the opening balances pages for employees (i.e. the Employee file > Opening balances page). However, you need to remember to strictly follow the rules about naming these pay categories. The pay category naming requirements are as follows:

For topping up to $1500 per fortnight, the pay category name MUST ONLY BE JOBKEEPER-TOPUP;
For notifying the ATO of the eligible employee's fortnight start, the pay category name MUST ONLY BE JOBKEEPER-START-FNxx, where 'xx' = the fortnight period, ie 01, 02, 03, etc, up to 13. As at the end of April there should only be 2 fortnights reported - 01 (being the fortnight period 30 March to 12 April) and 02 (being the fortnight period 13 April to 26 April). So, if the employee's JobKeeper payments started on the 2nd of April, the pay category name used in the pay run would be JOBKEEPER-START-FN01.
For notifying the ATO of the eligible employee's fortnight finish, the pay category name MUST ONLY BE JOBKEEPER-FINISH-FNxx, where 'xx' = the fortnight period, ie 01, 02, 03, etc, up to 13. As at the end of April there should only be 2 fortnights reported - 01 (being the fortnight period 30 March to 12 April) and 02 (being the fortnight period 13 April to 26 April). So, if the employee's JobKeeper payments ceased on the 20th of April, the pay category name used in the pay run would be JOBKEEPER-FINISH-FN02.

Pay Categories - Creating & Managing

What happens with leave accruals when employees are receiving JobKeeper payments?

There are a couple of things to point out here:

Employees don't accrue leave on JobKeeer top up payments (the JOBKEEPER-TOPUP pay category is a fixed unit base / allowance pay category which doesn't accrue leave)
Employees do accrue leave if "stood down"

So, if an employee is receiving JobKeeper payments while they are "stood down" then they should be accruing leave on the stood down hours. Our article explains how to process "stand down" employees... Managing the stand down of employees in the pay run

If an employee is working, and only receiving a top up to make their earnings $1500pf, then they are not "stood down" and should not be accruing leave on the top up (they should be continuing to accrue leave on the hours worked only).

Basically, if an employee is not working then the employer has to make the call as to whether they are stood down or not (seek advice from the ATO if unsure). If it's decided that employees are stood down, you can follow the process here.

How do I report the correct tier for my employees?

You only need to report the tier relevant for each employee once (unless you report the incorrect tier. In that case see here for instructions on how to fix it). There are 2 things you need to do in order to report the correct tier to the ATO:

Identify via the pay run/STP the tier the employee is classified against. You'll need to do this ASAP, i.e. in the first pay run the first extension fortnight applies to. This article will help further - Processing JobKeeper payments in the pay run
Every month you will need to submit a declaration via your business portal which includes confirming the business is still eligible, and which employees are also eligible. This includes the tiers that each employee is classified against. The monthly declaration has to be done between 1-14 of the next month and is a declaration for the preceding month. E.g. between 1-14 November you need to have submitted all the data for the October month.