how to record jobkeeper business participant payment from the ATO

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  • Updated 2 months ago
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I have registered for my partner to receive the business participant jobkeeper payment from the ATO. The partnership business has no employees.

1. How do we record in Reckon the Jobkeeper Business Participant payments received from the ATO?

2. a. Once the Business Participant payments are received into the business bank account, is the business required to pay all or part into the Business Participant's personal bank account?

     b. Can some of the business participant funds be retained by the business?

3. If #2a is a Yes, how do we record any amounts of money paid directly to business participant in Reckon. 

4. Are there any Reckon training videos that speaks directly to the Business Participant Jobkeeper payments?

I have trawled through many threads and some webinars but can't seem to locate a How To for business participant.

Many thanks, Lee
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Lee

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Posted 2 months ago

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Linda Putland, Accredited Partner

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Lee , I think l and others have answered this question a dozen times this week...the business participant payment is income to the business, not the individual, and is taxable.. allocate it to an Other Income account . Reckon cant really create a thread around this as it would constitute accounting advice I think, but I will try to find the ATO wording that is relevant..and post the link..
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John Graetz

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Reckon training will not cover this as it does not relate to an employee whose pay details are submitted to the ATO, via STP.  However, you can find more information from this ATO site which clearly talks about it being a payment for the business, rather than the individual
https://www.ato.gov.au/general/jobkeeper-payment/sole-traders-and-other-entities/
John L G
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Lee

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Thank you for comments Linda. I appreciate your response. Just to clarify, ...

I thought Other Income was a non-taxable account. So I have placed the Cashflow Boost as Other Income because of this.

So then Jobkeeper is just listed as an Income account, not Other Income?
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Linda Putland, Accredited Partner

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Other Income is just a type of account that allows the formatting of the Profit & Loss statement to show in a specific way - eg Operating Income - less Cost of Goods sold, then shows a Gross Profit total, less Operating Expenses, then shows a Net Ordinary Income figure - then you have Other Income and Other Expenses that subtotal as Net Other Income - with a final total of Net Income....

Its up to the individual business to determine what they use the Other Income and Other Expense items for - and it varies from business to business... but given that these stimulus payments are not part of the ordinary operations of the business - this is why we are suggesting they get allocated to Other Income - so when reviewing your business this year and comparing figures to previous and future years - the payments you are getting now - wont "muddy the waters" from a business operations perspective.  

Your accountant will always then work out your taxable income - with various add back amounts, such as Entertainment expenses, Exempt Minor Fringe Benefits, these stimulus payments, Non Deductible expenses etc...
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Lee

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thanks very much :)