Quick facts for small business if you want to access the JobKeeper Payment to cover part of your staff costs
For businesses with annual revenue of less than $1billion, to be eligible your business revenue must be have fallen by at least 30% compared to the same period a year ago (minimum comparison period is a month).
The JobKeeper payment is paid to you only if you keep on staff you had employed on 1 March 2020. Which will be determined by your Single Touch Payroll data.
You will get a payment of $1,500 per fortnight for each eligible employee, being someone who you are still paying who were employed at 1 March 2020. Note if an employee leaves and you replace them with someone else, it does not look like they are entitled to the JobKeeper payment. Also, for casuals, they need to have been employed for 12 months.
If you are paying them more than $1,500 a fortnight, you simply bank the $1,500 per employee to offset against the wages you have already paid them.
If you are paying them less than $1,500 a fortnight, you will need to top their pay up to $1,500 a fortnight. I would expect that this top up happens after you receive the JobKeeper money, but watch this space as I am sure this will need to be clarified.
Stood down employees count as long as you pay them the minimum of $1,500 a fortnight. It looks like you can pay them this after JobKeeper payment comes in, but watch this space as I am sure this will also need to be clarified.
The hidden cash flow kicker
Whilst all the above looks great, the cash flow kicker is this.
The business will not start to get JobKeeper payments till May. And each payment is made monthly in arrears after that.
For staff still on payroll, you need to fund the cash payments (after tax) till you get the JobKeeper payment. For the top up for people under $1,500 a fortnight and stood down employees, clarification will be needed about when they are actually paid this. Hopefully it will be after the business receives the JobKeeper payment.
What to do next
If you are not sure if you will be eligible, it does not hurt to register via the ATO Website (www.ato.gov.au). Then let’s see what clarification comes around the timing of ayments to the employee.
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