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JobKeeper Frequently Asked Questions

This article should answer the majority of questions you may have on processing payments in CloudPayroll in regards to JobKeeper Payments.

Note: If your question is not here, please feel free to contact help@cloudpayroll.com.au.

Important: Please include your Organisation ID and Organisation Name at the start of the Subject field of the email, for example, 12345 - ABC Sample Business.

Hint: If you are logged into CloudPayroll, you can copy/paste your Organisation ID and Organisation Name from the top right of the page, where your profile and Logout is located.
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As an employer, am I eligible for the JobKeeper scheme?

The ATO has outlined the requirements for eligible employers on their Eligible employers page.

How do I apply for the JobKeeper Payment?

For information on how to enrol and apply for the JobKeeper scheme to obtain the JobKeeper Payments, go to the ATO's information page Enrol and apply for the JobKeeper payment.

When will I receive the JobKeeper Payment?

The first payments to employers for the Job Payments to their employees will be made available by the ATO for payment from 4 May 2020 onwards.

For more information, go to the ATO's Enrol and apply for the JobKeeper payment information page.

I have a lot of casuals. How do I know which employees will be eligible for the JobKeeper Payment?

There is a new report available for you in CloudPayroll under Reports > HR > COVID-19 - JobKeeper Payments. This report will assist with determining which employees are eligible.

For more information on which employees are eligible, go to the ATO's Your eligible employees information page.

Can I choose which employees I want to pay JobKeeper Payments to, if all my employees are eligible?

No. The ATO states one in, all in. Employers are not meant to pick and choose between their eligible employees.

However, individual employees can choose not to participate.

I am a sole trader with no employees. Am I eligible?

If your business meets the employer eligibility based on the following fact sheets and websites, then yes, you are eligible:

What if my business turnover increases?

If you work out that you qualify for JobKeeper Payments for the first fortnight because your turnover has declined by the relevant amount, you remain eligible and do not need to keep testing turnover in the following months.

However, you will have ongoing monthly reporting requirements.

Are employees eligible to receive the JobKeeper Payment while on parental leave?

If the employee is in receipt of the government paid parental leave, you will not receive the JobKeeper Payment.

However, any other type of paid or unpaid leave will be eligible for the JobKeeper Payment from the government.

What do I need to do if I have employees who are getting paid less than $1,500 per fortnight?

You will need to process a pay for these employees. See the Process a Pay Run With JobKeeper Payments article.

What happens if my employees are getting paid more than $1,500 per fortnight?

If your employee is paid more than $1,500 a fortnight, continue to pay your employee as normal.

As long as you have registered these employees with the ATO, the ATO will reimburse you at the start of the following month for the value of the JobKeeper Payment for these employees.

Can I reduce an employee's salary to $1,500 per fortnight?

If your eligible employees earn more than $1,500 per fortnight, you should continue to pay them their regular salary or wages.

However, you will only receive $1,500 per fortnight for each eligible employee.

Any amount you pay above $1,500 per fortnight is not subsidised by the JobKeeper Payment.

What do I do if I have stood down my employees?

If your employee was eligible at 1 March 2020, and has since been stood down, they are able to be rehired and will be eligible for the JobKeeper Payments. See the Process a Pay Run With JobKeeper Payments article on how to process these payments.

Do I have to pay the employees now, or can I wait until I receive the first JobKeeper Payment by the ATO?

No. You can't wait until the first reimbursement of the JobKeeper Payment from the ATO. It is required that you pay your employees before the first reimbursement.

Which payments are considered part of the minimum $1,500 fortnightly payment to my employees?

When comparing the payments to eligible employees against the $1,500 fortnightly JobKeeper Payment, consider these taxable payments as in scope:

  • Gross salary and wages
  • Paid and unpaid absences, including stand-down periods
  • Allowance
  • Overtime, shift and penalties
  • Bonuses and commissions
  • Approved salary sacrifice arrangements (consider only the payment prior to the deduction of the sacrificed amount)
  • Separately itemised allowances including those that are less than the ATO reasonable amount and/or not reported:
    • cents per kilometre (car allowance)
    • laundry
    • award transport payments that are deductible
    • overtime meal allowances
    • domestic travel and all overseas accommodation allowances
    • other allowances
  • Lump sum A, B and E payments (only)
  • Employment Termination Payments - taxable components

Exclude these payments, as they are not considered in the comparison:

  • GPPL - Government Paid Parental Leave (Centrelink)
  • WC - Workers’ compensation absence (not able to work)
  • Reimbursements – including of any “allowances”, as these are a precise amount that reimburses an expense, verifiable by receipts, which was (or will be) incurred by the payee and should not be reported through STP, regardless of JobKeeper Payments
  • Directors’ Fees
  • Lump sum D payments (exempt from PAYGW)
  • Exempt foreign income (exempt from PAYGW)
  • Employment Termination Payments – tax-free components and taxable components (exempt from PAYGW)

Examples

An Employee Paid Weekly

A weekly paid eligible employee is paid an hourly rate plus casual loading of $350 per week, with an effective salary sacrifice arrangement of $100 per week. This “taxable gross” (ignoring the sacrificed amount) equates to $700 per fortnight, so will receive a top-up of $800 per fortnight.

An Employee Paid Fortnightly

A fortnightly paid ineligible employee ceases their workers’ compensation absence halfway through the fortnight, so the $600 workers’ compensation absence payment and a JobKeeper top-up of $1,500 is paid for the JobKeeper fortnight.

An Employee Paid Monthly

A monthly paid eligible part time employee is paid on the 15th of each month and receives salary and wages, overtime and overtime meal allowances for $2,750 (at $20 per meal for 5 meals), so receives a top-up of $250.

Should I be paying superannuation and PAYG on the JobKeeper Payment?

Superannuation should be paid on your employees' salary and wages. If the salary or wages is less than $1,500 per fortnight, the top up allowance (the difference between your employee's normal salary or wages and the JobKeeper Payment) will not be superable, as per the JobKeeper Top Up article.

The salary or wages and the JobKeeper Payment will be taxed as per your employees' normal pay frequency.

What do I do if I have paid a redundancy payment to an employee?

If your employee has been made redundant after 1 March 2020, you are able to rehire your employee and receive the JobKeeper Payment.

You will need to seek legal advice on what to do about the redundancy payment made to your employee.

Do my employees need to do anything to receive the JobKeeper Payment?

No. They don't have to do anything to receive the JobKeeper Payment.

What if my employee works for more than one employer?

If your employee has multiple employers, only one employer can claim the JobKeeper Payment on their behalf. You may ask them if they agree to be nominated as an employee to receive the JobKeeper Payment.

Your employee should advise which employer they will receive the JobKeeper Payment from.

If your employee is a long-term casual and also has another permanent employment, they must choose their permanent employer. They cannot be nominated by you in this instance.

What if my employee is already receiving the JobKeeper Payment from another employer?

As an employer, you need to notify your employees of your intention to claim the JobKeeper Payment.

If your employee is already receiving the JobKeeper Payment from another employer, they are not eligible for a second JobKeeper Payment. It is your employee's responsibility to let you know if they are already receiving the JobKeeper Payment.

If your employee is already receiving the JobKeeper Payment from another employer, you cannot pay them the JobKeeper Payment.

How do I record the start date of the JobKeeper Payments for my employees in CloudPayroll?

In order to be eligible for JobKeeper Payments the ATO must be notified of each employee. Part of this process is completed in CloudPayroll in a payroll and is reported as part of STP.

Once you know what period you are eligible to start receiving JobKeeper reimbursements, you must add a JobKeeper Start pay element to each eligible employee's timesheet in a pay run of that period.

The JobKeeper Start pay element for the first period (30 March 2020 to 12 April 2020) is available as a standard pay element in CloudPayroll. If you are eligible to start in a later period, you will need to create the JobKeeper Start pay element for that period. See the Jobkeeper Start and Finish article for instructions on how to create a JobKeeper Start pay element.

To Add the JobKeeper Start Pay Element to a Timesheet

  1. In CloudPayroll, in Payroll > 2. Enter, select an employee's timesheet you want to add the JobKeeper Start pay element to.
  2. In the Add a new transaction section, in the Qty field type 1 (for 1 unit).
  3. Select the JobKeeper Start pay element from the Description dropdown, for example, JK-START01 - JOBKEEPER-START-FN01 if you are eligible for the JobKeeper payments to start in the first fortnight.
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  4. Select +Add to add the pay element to the timesheet.
    The Transaction Entry page displays.
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  5. Select Save.
    The pay element is added to the timesheet.
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  6. Repeat steps 1 to 5 until all employees' timesheets have the JobKeeper Start pay element.

I entered the incorrect start fortnight. How do I correct this?

In the next pay run, add the JK-FINISHxx - JOBKEEPER-FINISH-FNxx pay element for the same fortnight as the JK-STARTxx - JOBKEEPER-START-FNxx pay element you incorrectly reported to your employee's timesheet.

For example, you incorrectly entered JK-START01 - JOBKEEPER-START-FN01 for an employee and realise the employee is not eligible. On the next pay run, you add JK-FINISH01 - JOBKEEPER-FINISH-FN01 to your employee's timesheet. This will cancel each other out.

If need be, you can then enter the correct JobKeeper Start pay element.

See the:

I entered the start fortnight as a later fortnight, but actually my employee is eligible from an earlier start date. How do I correct this?

In the next pay run, enter the correct JobKeeper Start pay element (JK-STARTxx - JOBKEEPER-START-FNxx). The ATO will assume the earliest fortnight is relevant where no unmatched finish fortnight is reported.

See the How do I record the start date of the JobKeeper Payments for my employees in CloudPayroll? frequently asked question above on how to add a JobKeeper Start pay element to a timesheet, and the JobKeeper Start and Finish article for instructions on creating a JobKeeper Start pay element.

I entered the start fortnight as an earlier fortnight, but actually my employee is eligible from a later start date. How do I correct this?

In the next pay run, add the JK-FINISHxx - JOBKEEPER-FINISH-FNxx for the same fortnight as the JK-STARTxx - JOBKEEPER-START-FNxx pay element you incorrectly reported to your employee's timesheet. Then add the JK-FINISHxx - JOBKEEPER-FINISH-FNxx for the correct fortnight.

The Finish pay element will clear the incorrect Start pay element, and the new Start pay element will report the correct Start fortnight.

See the:

How do i determine which fortnight period to report if my employee resigns, goes on workers' compensation, or paid parental leave?

When reporting the finish period of your employee to end their JobKeeper Payments, you report the finish period to which the payment no longer applies, that is, the fortnight after your employee has left.

For example, if your employee resigns in fortnight 04 (11 May 2020 to 24 May 2020), you pay the employee as normal in fortnight 04, ensuring they receive at least $1,500 and their final pay. You also add the JK-FINISH05 - JOBKEEPER-FINISH-FN05 pay element for period 05 (25 May 2020 to 07 June 2020) to their final timesheet in that pay run.

See the How do I record the finish date in CloudPayroll of the JobKeeper Payments if one of my employees leaves? frequently asked question below on how to add a JobKeeper Finish pay element to a timesheet and the JobKeeper Start and Finish article for instructions on creating a JobKeeper Finish pay element.

How do I record the finish date in CloudPayroll of the JobKeeper Payments if one of my employees leaves?

If one of your eligible employees leaves, you are required to update the ATO. This is done through CloudPayroll in the payroll and is reported as part of STP.

Before you can finish the employee, you must create a JobKeeper Finish pay element for the period your employee is finishing. See the Jobkeeper Start and Finish article for instructions on how to create a JobKeeper Finish pay element.

To Add the JobKeeper Finish Pay Element to a Timesheet

  1. In CloudPayroll, in Payroll > 2. Enter, select the employee's timesheet you want to add the JobKeeper Finish pay element to.
  2. In the Add a new transaction section, in the Qty field type 1 (for 1 unit).
  3. Select the JobKeeper Finish pay element from the Description dropdown, for example, JK-FINISH03 - JOBKEEPER-FINISH-FN03 (27 April 2020 to 10 May 2020) if the employee left during the 2nd fortnight (13 April 2020 to 26 April 2020) as the Finish period is the JobKeeper fortnight after the employee has ceased employment.
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  4. Select +Add to add the pay element to the timesheet.
    The Transaction Entry page displays.
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  5. Select Save.
    The pay element is added to the timesheet.
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  6. Continue processing the employee's final pay.
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