jobKeeper

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  • Updated 2 months ago
I have just watched the Reckon Webinar on JobKeeper but still have unanswered questions.

We have decided to pay our employees based on an average amount of hours that would have been worked at this time of year even though all hours are not being worked.  So for example if i have an employee that would have earn't $1400 per week but now only working the hours to cover $1100 per week do I enter into Reckon the $300 as a JOBKEEPER TOP UP Payment.  I understand we do not have to pay our employees the $300 but choose to keep their wages as per normal.
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Andy

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Posted 2 months ago

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John Graetz

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Andy.  If you are going to claim the $1,500 payment for JobKeeper from the Government, you have to pay your employees at least $1,500 per fortnight.  If you are going to pay somebody $1,100 per week, that makes $2,200 in a fortnight which means that no top up payment is required, and if you are claiming JobKeeper from the Government, you will receive $1,500 to cover that $2,200 payment per fortnight.
John L G
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Andy

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Thanks John so do i just enter the $300 as a bonus to employees
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Linda Putland, Accredited Partner

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I believe you would enter as a Bonus or maybe a Stand Down topup or call it what you like - but this payment will require super on it and also tax to be deducted.. and it will go to Gross wages - not an allowance..
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John Graetz

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Andy.  The general thrust of what Linda stated is correct.  But in your specific case you are, by choice, paying your employees more that $1,500 in a fortnight - $1,100 + $1,000 = $2,200 which is more than the $1,500 required to be paid in order to get the Government allowance paid to you.  As such, Linda's point about SGC being payable is correct because you are not topping anything at all.  Tax is calculated as normal.  I really do not know where you are getting your $300 figure from.
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John L G
(Edited)
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Brigitte Nott

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Andy, as I understand your scenario, you are paying your employees $ 2,800.00/fortnight and receive $ 1,500.00/fortnight for JobSeeker. The difference is not a top-up but just you paying the balance of $ 1,300.00/fortnight for their normal pay. A top-up would be the amount of difference between JobKeeper $ 1,500.00/fortnight and, say the normal pay would only be $ 1,300.00/fortnight, i.e. $ 200.00/fortnight, because you have to pass on the full amount of $ 1,500.00/fortnight.
Regard,
Brigitte N.
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Andy

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Think I have everyone confused.
Employee normally would earn this time of year $2800 per fortnight but they are currently only working enough hours to be paid $2200 per fortnight.  The business has decided to top up their wages to keep at $2800 per fortnight. 

I think i will run with Linda on this one and enter as a gross payment and call a Bonus.

I believe we are still entitled to the government  JobKeeper allowance due to our reduced income.

Linda, would i have to pay super on this if super has already been covered within their OTE. 

Thanks all for your help.
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John Graetz

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Andy.  This is outside the scope of the Community to answer as it is a "taxation" matter for which we cannot be expected to provide an answer.  However, check this out:
https://www.ato.gov.au/Business/Super-for-employers/How-much-to-pay/checklist--salary-or-wages-and-ordinary-time-earnings/
Based on this, it would appear that your proposed extra payment could require the payment of SGC.  This is something that you should be checking out with your Accountant who is qualified to give this advice.
John L G
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Linda Putland, Accredited Partner

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I agree with John its always good to check with your accountant - A bonus payment as you are suggesting to use will have super as its related to their performance in the past and you wanting to reward them for being good employees - so probably the answer is yes, super is payable...given that the extra super is $28.50 per week and you are happy to pay them an extra $300 pw - you could err on the side of caution and pay it?
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Andy

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Thank you all for your help with this.