jobkeeper payroll item

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I have a number of clients wishing to include the JobKeeper payment in the April 2020 pays $3000 per employee. When will Reckon release the patch to comply. The feedback I have received to date is that the JobKeeper payment should be setup as an allowance & reported as gross wages, if this is correct then surely we can proceed . . . . 
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Posted 3 months ago

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Rav, Community Manager

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Hi Jacqui,
We're currently formalising our processes for our individual software as we speak in conjunction with the ATO. We'll be able to provide guidance on this early next week. Stay tuned to this thread as further updates will be made there - Jobkeeper payments & Reckon software
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Leanne

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Hi Linda.  Thanks for your help.  I am all good now.  Thanks again.  Leanne.  :)
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Colleen Dwyer

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Where is Reckon at with setting up for Jobkeeper? Quickbooks had it done a week ago?
Rav I presume we can follow the same process for Payroll Premier as Reckon Accounts
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Rav, Community Manager

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We've just completed our guide for Payroll Premier which I've posted here -
JOBKEEPER PAYMENTS WITH PAYROLL PREMIER 2019/20
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Gary Martin

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Hi, I am paying for first time April Jobkeeper so each employee is either getting $3000 or a top up to $3000
do I show FN1 or 2 as the start date
Gary
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Kevin Russell, Accredited Partner

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Who told you there's a patch? Myob have not done that. Nor Xero
Sorry, Patch and or Detailed instructions to comply with the STP reporting
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Linda Putland, Accredited Partner

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Hi Jacqui - there won't need to be a patch - your clients will just need to create a couple of extra payroll items.  Follow the thread that Rav has provided.. :)
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Tian Lan

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You are amazing Linda! We are currently accrue annual leave and personal leave as per pay cycle. For example, 20 days annual leave entitlement for a permanent full time employee, with 38 hours each week. Every fortnightly pay, we accrue 5.85 hours for the annual leave and 2.92 personal leave.
Thanks
Linda
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Linda Putland, Accredited Partner

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Well as much as it probably is going to be a pain - I think the best plan of attack is this:
  • just before you run the weekly pay that realigns your fortnightly schedule to the ATO one.. run the Leave Accrual report - and add the Personal Rate and the Holiday rate columns before bringing this up on the screen.
  • Send to yourself as an Excel file - save this original file
  • When opened in excel - first turn all the values into numbers
  • Then add a column for New Personal Leave available and New Holiday Leave available.
  • in the New Personal leave column - type =(current personal leave available column - (Personal rate/2) and press enter... once this works correctly on the first line - copy it down all the other applicable rows
  • in the New Holiday leave column - type "=(current holiday leave available column - (Holiday rate/2))" and press enter
  • once this works correctly on the first line - copy it down all the other applicable rows (this is taking half a fortnights leave accrual off the current accrual - which aligns with the single weeks pay you will process when you change the pay schedule)
  • Save this spreadsheet and call it something similar to "Calculations for leave adjustments upon conversion to new fortnightly pay schedule"
  • Now go back to your Leave accrual report
  • for the relevant employees - drill down into each line - this will take you straight to the employees record - you can go to their Payroll & Compensation window - then choose Leave accruals - then edit their personal and holiday leave as per the spreadsheet
  • Before pressing OK to save each employees changes - I would click on the Notes button - then the date stamp - and then - type Leave edited as per calculations (refer to the spreadsheet) upon change to fortnightly pay schedule)
  • Repeat for each employee - I know it will take awhile - but I think much quicker than editing pays/accrual rates... - and is fully documented...before and after
  • When completed - re-run the Leave Accrual report and save - with reference to this being AFTER conversion to new pay schedule.
Hopefully this makes sense?

cheers
Linda
PS - if you think you can cashflow the May additional fortnight topup that you have to pay (until August) - then you may not need to do this?...
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Tian Lan

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Hi Linda
I have thought the same: instead of adjusting twice on the rate, only adjust once on the leave balance available. Just not sure if Reckon has import function for this to import all changes from excel to the system.
PS boss prefers to change the cycle to align with ato and permanently. As no one knows what will happen if we are not align with it.
It’s not an easy process to get JobKeeper payment. We are slowly getting there.
Will wait on reckon update regarding the other issue. Really appreciate all your help and explanation.
Linda
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Linda Putland, Accredited Partner

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Morning Tian, you can now lodge STP with the 0.00 FN01 allowance item.
(Edited)
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Tian Lan

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Morning Linda. It's great news. Thanks!
Hi Jacqui

Set up a new payroll item based on an amount entered and not rate & hours.  Make the item excluded from super but taxable. Link it to your payroll expense account and part of Gross payments for STP reporting.

The job keeper payment received is classed as "income" but does not attract gst, I would recommend setting up a new income account for this.

On the second week of the fortnight (1st one being 30Mar-12Apr) work out if the employee reached the $1500 gross, if not put the difference in the job keeper payroll item as a lump sum, then produce the pay as normal.  If the employee is on a regular weekly wage then and will always be under the $750 a week then you can add the difference to each pay making it up to the $750 per week.  This is advisable if a casual worker, who might get a very small pay on the first week of the fortnight you could always top up their pay a little say $200, then the balance of the $1500 top up on the second week, to even out the pay.
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Lorrain Zimmerman

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That is how I have done it you may have to recalculate JK for some employees but it will work.
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GENEVIEVE

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Hello,
Thank you. That seems to make sense. I think I've managed to do all the changes on my accounting side. I just want to confirm one thing about STP reporting please.

You say: "Link it to your payroll expense account and part of Gross payments for STP reporting."

Does that mean that when putting the information in Reckon STP it is not done in such a way that the ATO can distinguish between the actual wages (for work done) and the top up they are subsidishing? I would have thought the two numbers go in separate STP fields so the ATO how much actual pay is, not as one amount. 

I appreciate your help. Thank you.
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Kevin Russell, Accredited Partner

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Kwik I spoke to Reckon Tech Support late Friday I was told the implementation was proceeding and there would be a KB early this week. I am not going to jump the gun here until I have all the information. And thats what I am advising the businesses with which I I work. The ATO haven't finalized anything. 
Hi Genevieve

ATO will need to know when it starts & stops, this is being worked out for the STP reporting side, if you are micro employee and don't STP report yet, it can be reported manually to the ATO.  Jobkeeper is a taxable income to the employee, but you don't have to include super, it forms part of the gross wage that is taxable.  The employer is not reimbursed per $$, it is reimbursed per eligible employee, so for the employees that earn more than $1500 a fortnight, there is no top up, but the employer still gets the $1500 if the employee is eligible.

ATo need to know who is eligible and when it starts, they can tell from stp and Gross column that the employee got $1500 or more in the fortnight.
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Amy Evans

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If you are a non stp reporting business how do you record the ATO reimbursement into the system when it is paid. Also how should you record the job keeper payments as we dont run a payroll we take Drawings?