When an employee on Jobkeeper Resigns

Discussion in 'Accounting & Tax' started by Foxy Moron, 10th Jul, 2020.

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  1. Foxy Moron

    Foxy Moron Well-Known Member

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    A question to employers and and accountants on the forum.
    Say the employee is leaving in Fortnight 7 of the scheme, of their own volition.
    The employer will show the employee as being terminated within the payroll system, and this should get picked up by the ATO during the Single Touch Payroll lodgement process.

    My question is - is that all the employer has to do, or is there some other notification involved to back them out of Jobkeeper ? Don't want future payments coming through when no entitlement exists.
    I am hoping that the STP process does the trick. Then when the next monthly turnover report gets done for Jobkeeper all the other employees should be automatically nominated for Fortnight 7&8 whilst the terminated employee should only be nominated for Fortnight 7. That sound right ?

    Has anyone had experience with this type of thing, or have anything to share ? Cheers.
     
  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    When doing the monthly turnover declaration there is the option to remove a employee for a specific or all future fortnights. Its not a STP thing. STP only gives the declaration capacity to the employee to join jobkeeper witthe employer. The employer must then submit a monthly declaration. STP staff are prefill but must be checked as if their conditions change it could see a penalty. I dont think the process is smart enough about which FN they are eligible in. A person could be paid in arrears for example.

    Those who employ casuals 12mths + need to be careful any staff dont get a FT job as this makes them the ineligible too.
     
    Last edited: 10th Jul, 2020
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  3. craigc

    craigc Well-Known Member

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    Different to what Paul reported - correct number of eligible employees is completed to Jobkeeper declaration from STP.
    Verify on ATO mygovid or through your accountant that the correct number of eligible employees have been recorded from STP reporting.
    If correct employees eligible, then declare your turnover and next month’s forecast and submit to claim.
    If the employee was not closed out in STP with the ‘final Jobkeeper’ code in their week 7 pay, you will likely have to go back through STP to amend. In later months there was no possibility to amend employee numbers on the declaration, had to be corrected from STP data.
    Note - I have found this process has changed from closer to Paul’s description (early on in Jobkeeper) to what I describe above in more recent months. They are likely still updating code in the background so check the number of eligible employees carefully before submission.
     
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  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    The data that "prefills" employees is just rough data and for various reasons I have seen it missing people each month, duplicated ! or with former employees. While it seems to be matched to ASTP its also not as I have former employees appearing in some clients. Must admit June seems better than April which was built in a short time period

    Tax agent functionality may vary vs employer business portal. I dont see that to compare and have found things they cant do that I can do quickly. Agents are given more functionality for many processes it seems. And as Craigc observes they are progressively updating to reduce bugs and assist compliance matching.
     
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