Many people have been asking if they can still apply for JobKeeper, the short answer is yes. If you have not satisfied the turnover test in previous months, you can still assess your eligibility at a later date. The turnover months can be May, June, July August or September. You only need to satisfy the turnover test once, you do not need to retest in subsequent periods.
Once you've satisfied the test, you'll then need to report monthly to ensure you receive the payments.
When does JobKeeper end?
JobKeeper ends on Sunday, 27 September 2020.
JobKeeper Scheme Overview
JobKeeper is a Federal Government subsidy paid to eligible businesses effected by COVID-19 to cover the costs of their employee’s wages.
Affected employers will be able to claim a fortnightly subsidy payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months. This full amount of $1,500 must be paid to all eligible employees, whether they are full time, part-time or long-term casuals.
Here is a brief summary of how the JobKeeper payments are made:
- They are paid by the ATO within 14 days of month-end.
- The first payment - first week of May 2020.
- The eligible payroll periods are every 14 days, starting 30 March 2020.
- Monthly employer payroll reporting is required to trigger the payment by the ATO – using Single Touch Payroll (STP).
The employer will continue to receive the subsidy payments for eligible employees while they are eligible for the payments. While the program is expected to run for 6 months, payments will stop if the employee is no longer employed by the business.
Business Participation Entitlement
Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement. A limit applies of one $1,500 JobKeeper payment per fortnight for one eligible business participant. Sole traders, one partner in a partnership, one beneficiary of a trust, and one director or shareholder of a company may be regarded as an eligible business participant.
For more information on this, please refer to our COVID-19 FAQ page.
Why apply for JobKeeper?
If you are eligible to receive the JobKeeper payment for all your eligible employees for the entire 6 month period, you could receive some significant sums with some examples highlighting the total JobKeeper payment amounts as shown below:
Obligations & Risks
If a wrong claim is made or if the ATO in the future decides that you were ineligible to receive the JobKeeper payment, the ATO will require a repayment of all JobKeeper payments received, plus penalties and interest.
The key risks to employers include:
- The employer certifies the facts provided to the ATO and the JobKeeper claim made.
- The employer receives significant JobKeeper payments over a 6 month period. For example, an employer with 10 employees would receive $195,000, and an employer with 20 employees would receive $390,000.
- If the employer makes a mistake and is found to be ineligible by the ATO (for example, its turnover is not down by 30%), then they may have to repay all amounts received back to the ATO.
- An employee ceases to be eligible if they cease employment during the life of this JobKeeper scheme.
Also, the ATO requires employers to keep all records in relation to JobKeeper claims for a 5 year period.
For assistance with your JobKeeper application and ongoing obligations, take a look at our JobKeeper Work Plan service.
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