COVID-19 Update – JobKeeper Enrolment for ABN Holders

17th April 2020                                                    

Music Monthly - MAY

JOB KEEPER ENROLMENT FOR ABN HOLDERS

The ATO have now confirmed the process for Enrolling and Applying for the JobKeeper payment.

As your registered tax agent, we can enrol, apply & report to the ATO on your behalf (fees will apply).

Key Points

 #1 – drop in turnover of at least 30% for a test period. Further information is due out on this shortly (ATO still have not confirmed the format).

#2 – Business portal access via MyGovID

Enrolment – From Monday 20th April you can with the ATO using the Business Portal and authenticate with mygov ID. You must do this by the end of April to claim JobKeeper payments for April.

The online form will require your bank account details and an indication if you are claiming an entitlement based on business participation of your claim eg sole trader.

You will also specify the estimated number of employees who will be eligible for the first JobKeeper fortnight (30 March – 12 April) and the second JobKeeper fortnight 13 April – 26 April).

If you are claiming for your employees there are several steps to take prior to the end of April:

  • Check you and your employees meet the eligibility requirements.
  • Continue to pay at least $1,500 to each eligible employee per JobKeeper fortnight (the first JobKeeper fortnight is the period from 30 March to 12 April).
  • Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf and check they are not claiming JobKeeper payment through another employer or have nominated through another business.
  • Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April. Keep it on file.

Application – From 4 May you can claim the JobKeeper payment by logging back into the ATO Business Portal.

  • Ensure you have paid each eligible employee a minimum of $1,500 per JobKeeper fortnight before tax.
  • Identify your eligible employees in the application form by
    • selecting employee details that are prefilled from your STP pay reports if you report payroll information through an STP enabled payroll solution, or
    • manually entering employee details in ATO online services or the Business Portal if you do not use an STP enabled payroll solution, or
  • Submit the confirmation of your eligible employees online and wait for the confirmation screen.
  • Notify your eligible employees you have nominated them.
  • ATO will pay you the JobKeeper payment for all eligible employees after receiving your application.
  • Each month, through ATO online services or the Business Portal, you will need to reconfirm that your reported eligible employees have not changed. This will ensure you continue to receive the JobKeeper payment. You do not need to retest your reported fall in turnover, but you will need to provide some information as to your current and projected turnover. This will be done in your monthly JobKeeper Declaration report.
  • If your eligible employees change or leave your employment, you will need to notify the ATO through your monthly JobKeeper Declaration report.

Sole Traders and other entities

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.

Your entity may be eligible for the JobKeeper Payment scheme if you:

  • have a non-employee individual who is actively engaged in the operation of the business – this individual is referred to as the eligible business participant and they meet the following criteria at 1 March 2020 and for the fortnight you are claiming:  ​  
  •  a sole trader
  • a partner in the partnership
  • an adult beneficiary of the trust
  • a shareholder or director in the company.
  • meet the other relevant eligibility requirements.

The entity, not the eligible business participant, receives the JobKeeper payment. The exception is a sole trader, who is both the business entity and an eligible business participant, and so receives the JobKeeper payment themselves.

Your entity is eligible if:

  • on 1 March 2020, it carried on a business in Australia
  • it satisfies the fall in turnover test for the relevant period
  • it satisfied certain conditions as at 12 March 2020, being:
  • it had an ABN on 12 March 2020, and
  • it had lodged, on or before 12 March 2020, at least one of
    • a 2018–19 income tax return showing that it had an amount included in its assessable income in relation to it carrying on a business, or
    • an activity statement or GST return for any tax period that started after 1 July 2018 and ended before 12 March 2020 showing that it made a taxable, GST-free or input-taxed sale

Employees

If any employees have questions about this or any other matter, please contact us.

Corderoy Accounting Services
Unit 4, 86 Inspiration Drive
Wangara, WA 6065
9302 4250 ph
9302 4295 fax
www.cascpa.com.au

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