Latest COVID-19 Govt Assistance for Businesses

And jobseeker is also assessable
A employer that pays the min jobkeeper will likely have a offsetting wages deduction. A sole trader will not. A eligible business participant wont

A employer with cashflow boost may receive tax free income but when paid to another person.. is it?

 

My business missed out on job keeper eligibility by 8 minutes .. Basically as long as a certain invoice wasn't paid yesterday then would have the <30% drop in income. Received the remittance advice at 4:52pm.

Maybe next month ...

 

Its a cruel blow.

 

The remittance advice may not be actual receipt. Damed OSKO may mean it was included but depending on account type it may credit the next day. Trading Bank v savings bank issues esp CBA !! Shame they didnt pay by card. The bank account and actual deposits may be key issue assuming you are a cash basis reporter for GST. (Changing cash / accruals or vice versa to bypass the issue is not accepted)

That qtr option sugested by Simon is one of THREE under the basic method. You only need to meet one test. You choose.

eg March 19 v March 20
April 19 v April 20
Q4 2019 v Q 2020
using GST inclusive if applicable.

Also worth considering if any of the alternative tests are eligible. They are complex and easily incorrectly applied.

This qtly basis would mean that the early phase jobkeeper would not be available at this time but can be applied for when met (july) provided the min $1500 f/n has been met in each fortnight so you cant backdate if that isnt met all the way through. Deferred application is a option.

Applying the turnover test

 

So only people choosing the monthly method of March or April will get JobKeeper payments in May but people using the estimated Q4 (April - May) won't get their first payment until July?

 

I enrolled jobseeker but I have not seen any link in step 3 in MyGov yet. Do you know why?

 

No. Under the basic test a business can use monthy turnover at any time eg march, April, may, June etc... Or can use the quarter ended June. They only need to meet the test oce and the best suggestion is strat with Monthly and then if that didnt work use quarterly. If they promptly register that payment could backdate if their employees were paid the minimum throughout that period. They will need to certify each of the fortnighly periods at that time. It would be paid in July. Spanning six fortnights.

First rule to jobkeeper is the eligibility test based on turnover. I have many clients on income cycles that delay the impact of CV19. They wont see a reduction until maybe July. At that time they can then consider registration and commencing jobkeper. It wont backdate as their eleigibility date commences when turnover is impacted. There are also alternative tests that apply to special cases for calculting turnover

However a person who has no idea of their records may only now have identified that their turnover for April was 30% lower than April 19. They register today. Provided their employees have been paid a minimum of $1500 a F?N since the first F/N starting 30 March they can be backdated. A sole trader or person seeking to use Eligible Business Participant access wont need to meet the minimum payroll test as they cant be a employee.

 

Jobseeker is not visible in MyGov. Jobseeker is claimed through Centrelink and their app. MyGov may be used as the inbox for communications only.

Jobkeeper is not visible in MyGov either. Jobkeeper is only accessed through the business portal for registsred users or a tax agent who has tax agent online services. EMPLOYERS or sole traders, or a business entity with a eligible buisness participant can claim jobkeeper, not employees. MyGov is a taxpayer tool, not a business or entity or employer tool.

Late onFriday / Sat the ATO finally mentioned to enrolled employers that further steps had to be completed in the business portal to ensure paymnets for jobkeeper were paid for fortnights 1 & 2. This involved two of three final steps

1. Enrolment incl bank details
2. Enrol and ensure employees and EBP are nominated personally or excluded. Employers need to retain these forms.
3. Employer nominates for each employer which f/n each employee is eleigible. eg excluded, FN1, FN2 or Both FN1 & 2.

Once 2 & 3 occur payment is mean to occur soon after (days not hours). The employee would already have been paid. This is just the employer reimbursement.

All employers must return on 1st June and repeat process 3 for the month of May (FN 3 & 4)

 

Hi Paul,
How was this notification from the ATO received? We are enrolled and we didn’t receive any notification.
Fortunately for our business we were not down 50% (Group requirement) in April so we noted early May that ineligible for the April Jobkeeper support payment.

 

Craig unless your turnover is massive ($50m) the basic test is 30% fall in turnover not 50%

Enrolled doesnt mean enrolled or enrolled and completed. Did you declare wages for FN 1 and 2 ? and for each employee reistered in step 2 ? Have you seen and checked the list of employees on the ATO age before confirming FN 1 and 2 ? (step 3) If not you havent completed the process.

Q : Do you have a MYGovID business access ? If not you havent competed the process. You may have just registered intent to register. Your tax agent can check and assist.
If you do under Business, Jobkeeper you SHOULD see the three steps :



Many are finding only the first "enrolled" is done.

 

@Paul@PFI for craig the turnover requirement is 50% and it isn't $50m turnover test level it is $1BN

you might be referring to the turnover test for the cashflow boost ?

 

Ah yep. Well noted. The number are both significant. Key issue is that only test is 30%.

 

not for businesses over $1BN turnover....Craig works for a business that meets that condition....always best not to assume

 

Hi Paul, as Mike has covered we’re 50% & $1Bn (large group).
Yes to all your questions, payroll reported through STP but we didn’t qualify for April so noted as no claim for April through the ATO business portal / mygovid process.
Cheers