Reconcile JobKeeper Payments for Sole Traders, No Employees.

BenScholz

Hi,
I am a self-employed, sole trader with no employees, I don't use payroll. I recently received the JobKeeper payment and I cannot, for the life of me, find a straight answer about the correct way to enter this payment into my ReckonOne books.

Can someone please help?

Thanks,
Ben

LyndaC

Hi Ben

Being a sole trader you do not need to account for the jobkeeper payment like a payroll or with the payroll part of Reckon One.

You need to add a new income account to your chart of accounts.  I would call it Jobkeeper income, this account does not have a GST code, it is assessable income but does not need to be included on your BAS.

When you see the payments from the ATO come into your bank account to allocate them to this account.

The amounts that you pay yourself just go to Owners Drawings in the equity section.

Hope this helps you

Lynda

BenScholz

Hi Linda,

It does help! I did end up creating the JobKeeper account. I then went to "Money In > Receive Money" and allocated the money into the JobKeeper Payment account as pictured.

I have a picture of how I set the extra account up as well just to be sure!

The question now is, when I generate a profit and loss report, the JobKeeper payment appears on it as 'Other Income', is this a problem when reporting it to the tax office?

Thanks again,
Ben

LyndaC

Hi Ben

As you have not put any tax code on the income account it will not appear in any of your BAS calculation's that you lodge with the ATO.

The money is however part of your Assessable income at the end of the year, and therefore is part of your profit and loss.

Being a soletrader the profit of your business is your income.

Lynda

BenScholz

Thanks again,

I have asked on other platforms and I get a lot of different answers, a few said that it shouldn't be included in your monthly report that you send to the ATO. So I just wanted to be sure.

Ben