JOBKEEPER PAYMENTS WITH RECKON ACCOUNTS & RECKON ACCOUNTS HOSTED

135

Comments

  • Wini1010
    Wini1010 Member Posts: 12
    edited April 2020
    I'd like to know this too, much easier than amending past pay runs.
    I am aware that MYOB are advising it is okay to do it this way, not sure if there's a reason Reckon is different.
  • Kirsten_10564492
    Kirsten_10564492 Member Posts: 6
    edited April 2020
    Yes Quickbooks also say it's ok to add to current pay run as it's just advising the ATO which fortnight you want to start claiming.
  • Cuono Riccio
    Cuono Riccio Member Posts: 12
    edited April 2020
    Hi Lan, that is incorrect, super must be paid for the hours they work. If they earn $800 from working, you pay super on $800. The $750 is deposited into your account from the ATO. If they earn $500, then super will be paid on $500 and you will enter the JKTOPUP for the $250 which excludes super. The ATO will still deposit $750 into your account. Make sense.
  • Lan
    Lan Member Posts: 23
    edited April 2020
    Hi cuono, yes I've made that distinction - jobkeeper does not attract SG. This is for any employers who want to pay their employees the $750 as jobkeeper and top up with normal hours - this would disadvantage the employee. You would pay their normal working hours as per usual and top up with jobkeeper if needed.
  • Tanya_9188937
    Tanya_9188937 Member Posts: 18
    edited April 2020
    Thank you Amanda.  Sincere appreciation for your response.
  • Allan West
    Allan West Member Posts: 13
    edited April 2020
    so if I'm confident that I have the SG sorted correctly, do I even need to use the JK codes? 
  • Rav
    Rav Administrator, Reckon Staff Posts: 15,305 Community Manager Community Manager
    edited April 2020
    The latest information we have been advised by the ATO is that the START item needs to be from the first payrun that includes these payments not subsequent.
    I'll ask again internally about it but at this stage that is our recommendation.


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  • Rav
    Rav Administrator, Reckon Staff Posts: 15,305 Community Manager Community Manager
    edited April 2020
    Allan,
    I would highly recommend that you don't deviate from the guidelines listed in the documentation above and ensure that you use the JobKeeper items.


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  • Donna Harvie
    Donna Harvie Member Posts: 3
    edited April 2020
    It does accept a $0 payment - I did it as an Update Event
  • Julie Holloway_10572406
    Julie Holloway_10572406 Member Posts: 3
    edited April 2020
    I'd like to thank you Michelle. Until I read your earlier thread I was all set to delete last week's payrun and redo it as FN01 - now I have simply updated as per your suggestion, which took a fraction of the time a full re-run would have taken - and it all seems to have gone well. :)
  • Jason Hollis
    Jason Hollis Alumni Posts: 516 Reckon Staff
    edited April 2020
    Allan in your case it's a "top-up" as yes.. eligible employees get $750/wk ($1,500 per fortnight) regardless if they generally earn less than that. This is confusing a lot of businesses as it doesn't seem to be logical, so you're not alone, but that's the decision the gov has made. We always suggest a business contact their accountant, BAS agent or the ATO if you need to clarify any concerns. 
  • Allan West
    Allan West Member Posts: 13
    edited April 2020
    I understand that this person receives more wages than normal through JK, I get that.  My concern was that by only coding $250 as JK then that is all I would receive as JK from the ATO.  However, from other posts I've read since, it appears that isn't the case and the coding mostly relates to the Super Guarantee making sure the employer only pays Super in respect to the regular wage.  
    Is there something else that the JK code does that I'm not understanding?   
  • Jason Hollis
    Jason Hollis Alumni Posts: 516 Reckon Staff
    edited April 2020
    JK codes are START and FINISH for eligible employees who earn over $1,500/fortnight > they are the simplest and only used once. TOPUP is used in the example you gave above where the employee earns less than the $1,500. This does not attract super however it's up to the employers discretion. 

    Also note that Fair Work should be consulted. Their landing page for JK is HERE
  • Lea Halton
    Lea Halton Member Posts: 9
    edited April 2020
    I understand the first period for Jobkeeper payments is 30/3 to 12/4.  I have already processed wages on 6th April (for the period 21/3 to 3/4), 9th April (for the period 28/3 to 10/4) & on 16th April (for the period 4/4 to 17/4) - all staff are being paid above $1500 per fortnight so I don't need to do the Jobkeeper top up payment but will need to put in the Jobkeeper first payment for each of these guys if it's their first payment - do i need to go back & fix all these to show which one was the first within the ATO first period dates of 30/3 to 12/4?

    Thanks just want to make sure I do this right.....
  • Jason Hollis
    Jason Hollis Alumni Posts: 516 Reckon Staff
    edited April 2020
    Correct Allan. You recive the full subsidy. 
  • Jason Hollis
    Jason Hollis Alumni Posts: 516 Reckon Staff
    edited April 2020
    Also to answer your question around the code and super. Its actually nothing to do with the code, but the fact you are setting up this pay item as an ALLOWANCE. 
  • Lan
    Lan Member Posts: 23
    edited April 2020
    Hi Lea, that's the situation we're in. Ideally we'd just put the jobkeeper-start-fn01 into our next payrun to show ATO eligible employees for when to start payments, rather than amending and resubmitting previous payruns. Rav say's this is the guidance he has received from ATO, however other accounting software like MYOB have mentioned the aforementioned scenario also works. I'd like to see this guidance from ATO if possible, to see if it's just a case of interpretation.  Waiting to hear back from Rav and Jason regarding this issue.
  • Dave Grayling
    Dave Grayling Member Posts: 2
    edited April 2020
    How does reckon Accounts handle a Business Partner? 
    We are a partnership, so I am not an employee of the business, but am still eligible for the Jobkeeper payment.  How do I handle this in Reckon accounts?  Do I have to set myself up as an employee?

    Thanks. Dave
  • Lan
    Lan Member Posts: 23
    edited April 2020
    Hi Dave, no need to add in, each month you'll be making a monthly declaration that you are eligible.

    https://www.ato.gov.au/General/JobKeeper-Payment/Sole-traders-and-other-entities/

    When enrolling for jobkeeper, there would have been an option to enrol a partner/business entity.
  • Craig Burgess
    Craig Burgess Member Posts: 1
    edited April 2020
    Hi All

    I think the instructions regarding withholding tax are incorrect for the JOBKEEEPER-START-FN01. I loaded the allowance following the instructions and went back to change the details on my last pays for the period commencing 30th March and it did not withhold tax. 

    You clearly have to withhold as JobKeeper is a Gross Payment so the instructions need correcting.

    happy to stand correct but l think l am correct

    Cheers

    Craig 


  • Gillian_9673196
    Gillian_9673196 Member Posts: 53
    edited April 2020
    Craig from what I understand the top-up is what holds the payg and the start-fn01 is only there to advise the ATO what is going on when you do STP

  • Lan
    Lan Member Posts: 23
    edited April 2020
    Hi Craig, the start-fnxx is only to let ATO know when employee should be starting their JK payments - no amount is assigned to this payroll item therefore no need for payg to be ticked. Only jk-topup has amounts assigned, therefore payg is ticked for this payroll item only.
  • Lilly Scalora
    Lilly Scalora Member Posts: 49
    edited April 2020
    As my understanding, if your eligible employees fortnight pay is over $1500 and you can just process payment as normal. Only those fortnight pay is lower than $1500, you need top-up as an allowance. Once you pay all eligible employees $1500/fortnight, ATO will reimburse the business at next month. I called ATO today, they said there is no need to add Jobkeeper start date and re-submit passed pay runs. 
  • Dave Grayling
    Dave Grayling Member Posts: 2
    edited April 2020
    Thanks Lan
  • Jason Hollis
    Jason Hollis Alumni Posts: 516 Reckon Staff
    edited April 2020
    Gillian and Lan are correct. Thanks guys. 

    Craig you will note that the START and FINISH items are to be set at NIL value ($0.00). If you have a value that attracts tax then these have not been used correctly.

    Summary:
    START / FINISH pay items are just to inform ATO of eligible employees who are entering / exiting the scheme. If the employee already earns more than the $1,500/fn there is nothing else to do rather than start / finish them. nb. The ATO have advised that when the scheme ends all employees will automatically be FINISHED. 

    The TOPUP pay item attracts tax and is sent in every pay run. 
  • Karen_10588337
    Karen_10588337 Member Posts: 2
    edited April 2020

    I have just one person who needs topping up for Jobkeeper for the second fortnight.  She earned enough in the first fortnight but her hours were cut back in the second.  I have 2 questions for this,

    1. Do we have to go back to the pays for the first week and put in against each employee JOBKEEPER-START-FN01 and resubmit the payroll or is it only if they have to be topped up (which in the first fortnight they don’t).  If we do have to go back, do I make it the first pay or the second pay in that fortnight as we are paid weekly?
    2. For the person that needs topping up in the second fortnight, do I use JOBKEEPER-START-FN01 or JOBKEEPER-START-FN02.  She qualifies for jobkeeper with her ordinary hours in the first fortnight but needs to be topped up in the second fortnight.
       
  • Jessica Yu
    Jessica Yu Member Posts: 5
    edited September 2020
    thank you for all the information, 
    just want to confirm in Step 4 on processing JobKeeper - 
    the note mention The JOBKEEPER-START- FNxx amount but be blank of (0) but if you want to show on the payslip it will need to enter 1 cent in the rate of the field this confusing if you can confirm how to enter the 1 cent to show on the payslip. 
    thank you 
  • Cuono Riccio
    Cuono Riccio Member Posts: 12
    edited April 2020
    Last question from me I hope....once you set the Start FN XX for that employee there is no need to do it again for any subsequent pays moving forward, regardless whether they earn more than $1500 per fortnight or less?
  • Rav
    Rav Administrator, Reckon Staff Posts: 15,305 Community Manager Community Manager
    edited April 2020
    That's correct, you only need to enter the START item once for each eligible employee.


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  • Cuono Riccio
    Cuono Riccio Member Posts: 12
    edited September 2020
    Oops one more question, someone from ATO said one of the conditions  of eligibility for employees in addition to the other criteria is that they should of been on your STP payroll from 1st of March. I have someone on maternity leave from October last year, they have already been paid their maternity leave 18 week payment. They have not been on STP since March 1. Is this factual?
  • Jason Hollis
    Jason Hollis Alumni Posts: 516 Reckon Staff
    edited April 2020
    Hi Jessica. Some businesses have asked to show JobKeeper START / FINISH on a payslip for employees to know it's been submitted (this is not an ATO requirement) and of course if the value is 0.00 our software ignores the item on the payslip. 

    Therefore the solution is to make the allowance $0.01 in the pay detail when creating the pay, which you can either pay to the employee, or create a reverse deduction item to remove it from the NET pay. 
  • Jessica Yu
    Jessica Yu Member Posts: 5
    edited April 2020
    Thank you, so it is ok to place a 0.01 cent in the rate section on the JOBKEEPER-START-FNxx  to show on the payslip. as when it mention "MUST be blank(or 0)  it reads to me that no amount can be entered or it will delay the process through ATO. 
    if you can confirm its ok to enter the 0.01 cent in the JOBKEEPER START-FN line to show on the payslip that will be great. 
  • Jason Hollis
    Jason Hollis Alumni Posts: 516 Reckon Staff
    edited April 2020
    Hi Jessica. No problem. 

    As for the ATO, they accept 0, 0.01 or 1.00 or 1 > this is because ALL software is different. We actually had to make a change in Reckon GovConnect so that we could accept $0.00, as this is the best practice and what the ATO have told us they prefer. 

    But yes you can add the above values if you want the START or FINISH items to show (on the employee's payslip).
  • Jessica Yu
    Jessica Yu Member Posts: 5
    edited April 2020
    Thank you for the classification. much appreciated the assistant 
  • Jason Hollis
    Jason Hollis Alumni Posts: 516 Reckon Staff
    edited April 2020
    You're welcome Jessica. Thanks for reaching out as your question will no doubt help others as well. Cheers. 
  • Jason Hollis
    Jason Hollis Alumni Posts: 516 Reckon Staff
    edited April 2020
    Hi Cuono, you can see an official response from the ATO HERE (about 2/3 of the way through the thread). 
  • Gillian_9673196
    Gillian_9673196 Member Posts: 53
    edited May 2020
    Shout-out to Rav and the Reckon team, thanks very much for the in depth help with JobKeeper etc.  The walk through guides were invaluable.  I'm certainly no Reckon guru so again thank you.
  • Karen_10588337
    Karen_10588337 Member Posts: 2
    edited April 2020
    Do I need to go back to the first eligible weekly pay run and put the Start FN01 in or can I do it in next weeks pay run and top up the previous 2 fortnights in the current payrun.  if I have to go back, do I have to then resubmit each payrun after this again?
  • Lilly Scalora
    Lilly Scalora Member Posts: 49
    edited April 2020
    Yes I agree that JKP-START-FN01 or FINISH enter in payslip is not an ATO requirement. Also I don't think we need to re-submit passed pay run just for edit previous payroll items to show your starting date to claim JKP. Because:

    1. Passed pay run submitted by STP only show W1 and W2 YTD data, it does not show payslip details;
    2. ATO will know your JKP start date/pay period by your JKP enrollment. In the JKP enrollment form, the company declare the starting period to participate JKP and how many eligible employees register for payment. These information will be enough for ATO make reimbursement $1500/fortnight per eligible employee;
    3. We can not just simply use JKP payroll item to replace normal payroll item, especially when employee worked as normal hours or reduced hours as those worked hours are attract super SGC but JKP hours are not subject to super SGC;
    4. I think the software should be made easy and simple for the JKP event, not to complicate the process. The purpose of this whole things is allowed business to claim correct ATO reimbursement, which is $1500/fortnight or $19500 (six months total) per employee. So which ever way recording can do this is fine. 

  • Rav
    Rav Administrator, Reckon Staff Posts: 15,305 Community Manager Community Manager
    edited April 2020
    ** UPDATE **

    Hi everyone,
    We've created a JobKeeper FAQ document which you'll find below. Its an evolving article and will be updated with more content as we proceed through this.

    The FAQ also clears up a recurring question that is coming up in this, and other threads, which specifically relates to previously submitted payruns and the JOBKEEPER START-FNXX item. We've reviewed the advice from the ATO regarding this and have temporarily revised our recommendations.

    Please see our JobKeeper FAQ below -

    HELP ARTICLE: JobKeeper Payments FAQ


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