Table of Contents

Adding JobKeeper Allowance Pay Items in Reckon Payroll Premier

Overview

In order to process JobKeeper payments, a minimum of (4) ATO mandated allowance pay items need to be added to your company file. This document will guide you how to setup these pay items in Payroll Premier.

The allowance name and setup must be followed as indicated. Any deviation from exact name may significantly delay or prevent the government reimbursement.

JK-ST-FNXX

This payroll item is used to indicate the first JobKeeper fortnightly period for which the subsidy is payable. "XX" refers to the fortnightly period from which the payment first started.

For Payroll Premier only JK-ST-FNXX may be used as the item name.

The JobKeeper fortnight is required to inform the ATO from which fortnight the subsidy is to be reimbursed. The JobKeeper Start Fortnight may be reported once or continue to be reported in subsequent Pay Events but must not be forward dated.

You might have to create multiple JK-ST-FNXX items if you have eligible employee/s who start receiving the JobKeeper payments in different fortnight period. Each employer’s payroll arrangements may be different, and employees may enter, or exit pay periods at different times. Some workers may be on workers’ compensation absences and only return to work sometime after the start of the JobKeeper payment.

To create this item you will need to:

  1. Go to Lists > Allowances
  2. Right click and select New

The create new allowance item window will display

  1. Name the allowance JK-ST-FNXX where XX represents the starting fortnight.
  2. Select the Allowance Type as Other
  3. Check Tax Exempt Allowance, Payroll Tax Exempt Allowance and WorkCover Exempt Allowance
  4. Click the Amount tab

Click the Fixed Amount radio button.

  1. Click OK to save the item.

JK-TIERX

This allowance item is used to determine which JobKeeper tier the employee falls under. "X" refers to the tier number, so for example if an employee is Tier 1, the item will be named JK-TIER1.

You may need to create multiple JK-TIERX items if you have employees who are eligible for different payment rates.

In order to create this item you will need to:

  1. Go to Lists > Allowances
  2. Right click and select New
  3. The new allowance window will display
  1. Name the item JK-TIERX where X represents which tier the item is for. For more information about JobKeeper tiers please consult the general guide.
  2. Select the Allowance Type as Other
  3. Check the Tax Exempt Allowance, Payroll Tax Exempt Allowance and WorkCover Exempt Allowance
  4. Click the Amount tab

  1. Select the Fixed Amount radio button and click OK to save the item

JOBKEEPER-TOPUP

This payroll item is used to indicate the Gross amount of JobKeeper payment.

In order to create this item you will need to:

  1. Go to Lists > Allowances
  2. Right click and select New
  3. The new allowance window will display

  1. Name the item JOBKEEPER-TOPUP
  2. Select Other as the Allowance Type
  3. If you are choosing to pay superannuation on the JOBKEEPER-TOPUP amount check the Calculate Super on Allowance checkbox
  4. Check with your state government website to see if they have exempted Payroll Tax and WorkCover from JOBKEEPER-TOPUP payments. If so select the required checkboxes.
  5. Click the Amount tab.

  1. Although the JOBKEEPER-TOPUP will have a payment, this is likely to be different for each employee so leave the amount as zero for now. Click OK to save the item.

JK-FI-FNXX

This allowance is used to indicate any exit of eligibility or termination of the employee. "XX” refers to the final fortnightly period to which the payment applies. The ATO must be informed of the fortnight from which the JobKeeper payment no longer applies. The JobKeeper Finish Fortnight may be reported once or continue to be report in subsequent Pay Events but must not be forward-dated. For simplicity, in our examples, we are going to use JK-FI-FNXX allowance once only.

You might need to create multiple JK-FI-FNXX items if you have employees who stop receiving the JobKeeper payments in different fortnight periods. This can occur due to workers' compensation absence, cessation of employment, change of citizenship, visa, personal circumstances and for other reasons which can make an employee no longer eligible to receive the JobKeeper Payments.

In order to create this item you will need to:

  1. Go to Lists > Allowances
  2. Right click and select New
  3. The new allowance window will display
  1. Name the item JK-FI-FNXX where XX represents the finishing fortnight
  2. Select Other as the Allowance Type
  3. Check the Tax Exempt Allowance, Payroll Tax Exempt Allowance and WorkCover Exempt Allowance checkboxes.
  4. Click the Amount tab
  1. Select the Fixed Amount radio button.
  2. Click OK to save the item.

If you require assistance with setting up JobKeeper payments, click here to find a certified Reckon Partner near you.

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