Job Keeper Payment

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  • Question
  • Updated 3 months ago
  • (Edited)
We are currently still paying employees and will be seeking the Job Keeper payment from the government.

For last weeks pay the amounts are under $750 gross for the week for each employee, so I am topping up the amount to come to the required $750.  

How can I enter this into Reckon Online to reflect the amount that I am paying them - but still differentiating between actual hours worked and the amount added to top up the payment.

I pay weekly and also lodge STP weekly with the ATO, normally on a Monday - so I am wanting to do this today so I can lodge my STP.
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Kathy

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Posted 3 months ago

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Glenda Veale

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I would set up a new pay item called job keeper and put the balance to this item. Remember you do not have to pay super on job keeper if you don’t want to so make sure the pay item is setup without super.
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Leanne

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Glenda Veale - So, does that mean if you were paid a Weekly Net amount of $467.60 (after Tax) - you would top it up to $750.00 per week.  An extra $282.40.  Is that correct?
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Teagan Hayse

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Leanne

No it will go like this. 
Normal hours XX totaling net $467.60
JobKeeper Top-up (Set up as an allowance in Reckon) $282.40 Less tax
TOTAL NET PAYMENT $654.00 which is $750 less tax as the $1500 is before tax

Tax on $1,500/fortnight is $92 therefore tax per week $96

Teagan
(Edited)
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Leanne

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Ok, so $629.19 Weekly Net Amount (after Tax) - Top it up to $750.00 per week.  $120.81 Less Tax.
Total Net Payment  ??
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Teagan Hayse

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The total Net will be $654
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Robyn Kelly (Partner), Accredited Partner

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You need to work on GROSS, not NET.  The wage needs to be topped up to $1,500 GROSS (before tax).  Then calculate tax.
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Kathy

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Sounds like a good fix for now - will give this a try.  Thank you.

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Leesa Clausing

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So their net or gross pay is to reach $750.00 and we only pay super on their standard pay not jobkeeper top up?

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Bill Hooker

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That is correct. If you need to top up the pay to the $1500 per fortnight minimum GROSS PAY then that component is not subject to Super @ 9.5%.
Also , always  liase with your Tax Agent, as this amount of $750.00 per week will treated as Exempt income in your Tax Return.  And deductions will be also accounted for tax purposes, by your Tax Accountant. 


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Glenda Veale

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I would also direct the pay item to a new sub-account of wages. Of course a conversation with your accountant/tax agent is the best thing to do.
As Tax Agents we are ready to offer any business affected with corona , 50% reduction for company tax returns for 2020.
And also we are helping business to process bills for free up to 500 pdfs for hosted
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John Graetz

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Just to clarify/confirm what has been stated above, the following is the official word from the ATO:

AM I REQUIRED TO PAY PAYGW AND SUPERANNUATION ON THE JOBKEEPER PAYMENT? You must pay a minimum of $1,500 per fortnight to your eligible employees, withholding income tax as appropriate. The $1,500 per fortnight per employee is a before tax amount. Where an employee is paid more than $1,500 per fortnight, the employer’s superannuation obligations will not change. Where an employee is having their wages topped up to $1,500 per fortnight by the JobKeeper Payment, it will be up to the employer if they want to pay superannuation on any additional wages paid by the JobKeeper Payment.

WHAT HAPPENS IF MY EMPLOYEE RESIGNS? If an employee for whom you are receiving the JobKeeper Payment resigns, you must notify the ATO. You may need to refund some money to the ATO.
John L G
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Adrian

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There are some articles out there already on what is required, and the ATO have not made it simple

Specific payroll item to be setup as allowances to record the top up payment, as well as payroll items to record start pays and end pays for Jobkeeper payments.

https://www.e-payday.com.au/post/jobkeeper-legislation-is-law-so-what-now-for-your-payroll

https://support.yourpayroll.com.au/hc/en-au/articles/360001461816?utm_source=product&utm_medium=notification

Adrian
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Teagan Hayse

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From what I am reading on other software providers instruction pages you are to put the top-up into an allowance.
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Tiffany

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What Adrian answered is what I am using I redid my previous pays with the correct created JOBKEEPER-TOPUP allowance and also created the JOBKEEPER-START-FN01 allowance with the rate of  .01 and quantity 1 this then meant that I had underpaid the employees .01 each for the week of notifying the start date so I just adjusted the PAYG of each employee with .01 so this is not an expense to the company as PAYG is only paid in full dollars and your bank details will reconcile.  I then sent a Single Touch Payroll Full file replacement.

i hope this helps

https://support.yourpayroll.com.au/hc/en-au/articles/360001461816?utm_source=product&utm_medium=notification