Jobkeeper and Annual Leave

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  • Updated 2 months ago
I have set up all the Payroll Items in Reckon as per the Jobkeeper instructions but Im a little confused as to the Leave entitlements. Most of my staff will be paid the $1500 jobkeeper payment plus the difference to make up their normal pay.  I understand that I will use the jobkeeper topup payroll item with the $1500 and then work out what the hours are to make up their normal pay.  I have read in all the previous posts that the $1500 doesn't automatically accrue the leave entitlements so im just wondering how to set this up as the instructions in the leave requirements are a little confusing. Im starting to understand it better but im just wondering if anyone can tell me how they have set their systems up.

Also I have a few staff that earn under the $1500.00 per fortnight so I know if just calculate their pay as normal and use the Jobkeeper topup item to make up their pay to the $1500.  For these staff I presume that they wont accrue holidays on their topup amount.  Am I presuming correctly. 

Any assistance would be greatly appreciated.
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Kelly

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Posted 2 months ago

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Linda Putland, Accredited Partner

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Kelly - are the employees who you are going to pay more than $1500 pf - actually working for this total amount of pay?  if so, then they get NIL topup - they just get their normal pay with all the normal accruals?

for the staff who earn less than $1500 assume they are working less hours and yes, they get a topup payment to $1500 pf... BUT - are they working less because that's their normal situation - or are they stood down and working less than contracted?  the question about leave accruals depends on their employment contract with you and their current situation? 

You may need to seek some advice from one of the HR groups and/or fairwork around this?  there is lots of info on the Fair Work website about this... once you know what your obligations are, then we can assist with how to record in Reckon?
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Kelly

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Hello Linda.  All staff are continuing to work their normal hours.  Do I not have to show the 1500 jobkeeper component in their payslips.  I would continue to pay them their normal wages but I would be claiming the $1500 for each of them per fortnight. 

With the staff that earn less than $1500 this is also their normal hours and wages, so I would pay them their normal wages and top them up to the $1500. 

None of my staff have been stood done or doing less hours .

Unfortunately im unclear for both different areas
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Linda Putland, Accredited Partner

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Hi Kelly - if no staff are doing less than before - then I would say all wage accruals would be as per usual.  For those getting in excess of $1500 - you DO NOT have to show the jobkeeper payment in their wages - this reimbursement from the govt will just assist your business to keep paying them.  For those getting less than $1500 - you DO HAVE to show the Jobkeeper topup.  

Have you watched the webinar that Reckon gave this week?  I believe it should answer all these questions for you?  https://community.reckon.com/reckon/topics/register-now-jobkeeper-webinar-for-reckon-accounts-reckon...
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Lilly Scalora

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Hi John, I actually don't think that is logical/reasonable. Because they made Super SGC payment optional based on the Jobkeeper Topup is not ordinary earning. However, accrued leave hours also based on worked hours. With employees paid on Jobkeeper Topup or reduced working hours, there is not normal hours worked. The accrued leave hours should be based on worked hours as you said and same treatment as Super SGC. I really don't understand why they need to set accrued leave hours same as normal working hours!
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Lilly Scalora

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Sorry, accrued leave hours based on employee's normal working hours 
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John Graetz

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Hi Lilly.  I can readily agree with you that it does not sound logical, but unfortunately, neither of us make the rules and what comes out of this is that there is now a bit of a sting for employers who might think that they are fully covered by the JobKeeper payment they receive in such circumstances, whereas in fact they are still liable for accruing annual and personal leave on normal hours as if the stand down had not occurred.   The following statement comes from a publication issued by the Fair Work Ombudsman on 1/5/2020 which states:
Employees subject to a JobKeeper enabling stand down direction still accrue their usual leave entitlements for the period the direction applies (as if the direction hadn't been given to them).  
You can refer to this information and other similar information by following this link:
https://coronavirus.fairwork.gov.au/coronavirus-and-australian-workplace-laws/pay-and-leave-during-coronavirus/jobkeeper-wage-subsidy-scheme/leave-the-jobkeeper-scheme
John L G
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Lilly Scalora

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Yes. Thank you!
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Mark Harrison

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Excellent work John
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Simone Farrell

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Hi Kelly,
This is a link to all the information regarding JobKeeper for Reckon.
https://m.youtube.com/watch?v=kCAASHuJyJE&feature=youtu.be

For your normal full time workers the $1500.00 will not be on their payslip. Just pay them as per usual. They will accrue leave as normal too..
Jobkeeper comes up on a payslip for workers who receive a JOBKEEPER-TOPUP (allowance).

Simone
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Kelly

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Thankyou ladies.  I love that there is always someone with the right answer who is willing to help.  This makes perfect sense but I will watch the webinar just to be sure.  Thanks again
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Kelly

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Silly me did all the set ups for the new Payroll Items but didn't watch the webinar as I thought I had my head around what to do from ATO info and other webinars I had watched.  Will go and watch the Reckon one later today.