No images? Click here Autumn - 1 April 2020 JobKeeper Payments UpdateCOVID-19 round three stimulus A cracking $130b has been added to the Australian government spend in keeping our economy alive. What a fortunate state we are in to have funding like that available. Many countries are, and will be, in trouble for some time. The purpose of the latest stimulus package is not only to keep employees connected to their jobs, but to make sure that we all remain consumers. If we keep the habit of spending, even at a lower rate than previously, our businesses can reply on their customers returning once the threat of the virus has passed and incomes start to rise again. JobKeeper payments The new JobKeeper payments announced by the Federal government has been a welcomed offer for all employees. The time spent on hold with Centrelink or in a queue to receive benefits has now been eliminated for many people. Although we will have to wait for the payments to come through, along with extra detail on timing etc, this will be a big win for most employers. To register for the JobKeeper payments, enter your details on the ATO website. The criteria for small to medium businesses are:
Practically, we believe that an employee’s eligibility will be confirmed if you have lodged a Tax File Number declaration for them prior to 1 March 2020 and have included them in your Single Touch Payroll reporting for the month of March. Other staff or business owners may still be eligible however there may be more discussion required with the ATO to get their payments processed. When do the payments arrive? The first payments will be made to employers in the first week of May, and back-dated to 30 March 2020. This will create a cashflow burden for a period of time We anticipate the payments will be received in a similar manner to the Paid Parental Leave scheme. That is, payments are sent from Centrelink to the business, tax is withheld by the employer, no super is paid, and the gross amount is included on the employee’s Income Statement at the end of the financial year. Remember that payments made to employees for hours worked during the coming weeks will be considered Ordinary Time Earnings and will attract Superannuation Guarantee Charges as normal. The JobKeeper payment will need to be recorded as a separate category in your payroll software. There are a few details missing from the Treasury Fact Sheets at the moment, such as when are non-working staff required to be paid by the employer, and how do you register if you are a receiving trust distributions or dividends rather than wages. These answers should come soon and we encourage you to consider what’s best for your business before you action any payroll entries in the next week. Stood-down staff You may have stood down staff in the past few weeks due to decreases in clientele and cashflow. Employees on unpaid leave will be eligible for the JobKeeper payments and you will need to communicate this to them. They may have recently registered to receive other benefits from Centrelink and they will only be entitled to one scheme. What’s next? The past few days have showed slowing rates of infection in Australia. While this is pleasing, it will only continue with our vigilance and isolation. Businesses are going into ‘hibernation’ mode after landlords have agreed to rent-free periods of around three months. Employees who cannot work from home may see a severe reduction in hours and pay until the JobKeeper and JobSeeker payments come in late April/ early May. This will be a very testing time as workers’ pockets drain and pressure is put on employers to pay up the $1,500 before it’s received. Internet and cyber scams We remind you that wherever there is a benefit, there is an opportunist. Be particularly vigilant in the coming weeks as not all contact is from where it seems. If you receive and email or text requesting your bank details or personal information, don’t be afraid to confirm the contact first. The little resources you have with you now won’t be retrievable if you send it in the wrong direction. Synstrat’s hours and contact details We will continue to keep you updated on any new measures which will affect your businesses throughout this time. Our phone lines and emails are still open for business and we encourage you to call us if you have any concerns that we have not yet covered. Stay indoors, wash your hands, and enjoy all of the virtual connections you can make with modern technology at your fingertips. The Synstrat Team The above information is general advice only. To discuss how this may affect your personal situation, please contact your Synstrat Adviser before taking any specific action on (03) 9843 7777 or office@synstrat.com.au The Synstrat Group provides Business Advice, Accounting and Financial Services. Prepared by Synstrat Accounting Pty Ltd for clients of Synstrat Group. Liability Limited by a scheme approved under Professional Standards Legislation Synstrat Accounting Pty Ltd P. 03 9843 7777 ACN 053 416 149 If you are not the intended recipient of this communication please delete and destroy all copies of this message and telephone Synstrat on +61 3 9843 7777 immediately. If you are the intended recipient of this communication you should not copy, disclose or distribute this communication without the authority of Synstrat. Any views expressed in this communication are those of the individual sender, except where the sender specifically states them to be the views of Synstrat. If you do not wish to receive this email in future, please reply to the sender requesting termination of service. |