jobkeeper

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  • Updated 3 months ago
Shouldn't the Jobkeeper payment have PAYG Withheld
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Lorna Bock

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Posted 3 months ago

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John Graetz

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Yes you should.  The following is from the ATO website:

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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Lorna Bock

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Thanks John... The instructions for setting up JobKeeper payroll items that Rav sent this morning says not to tick the PAYG box on JOBKEEPER-START-FN01
Just a bit confusing...
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Jason Hollis, Head of Product

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Hi Lorna. The START and FINISH items are used to notify the ATO to add those applicable employees via your STP submission. You will note in the help document that we recommend setting this at $0.00 therefore the PAYG tax setting is irrelevant.

TOPUP is what is to be taxed. 

We'll make a note on the doc to rule out any further confusion. 
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Jason Hollis, Head of Product

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I have now added a note to both START & FINISH item types about tax on $0.00. Cheers. 
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Leanne

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I was just wondering the same thing. I thought you had to pay paygw and then I saw those instructions that said dont tick payg box I was confused. I then went back and I think but could have it wrong that you tick no payg on the jobkeeper start allowance and jobkeeper finish allowance as these indicate the start and finish and arent a $$ value.  The jobkeeper top up is the one that has paygw ticked.  My head is spinning trying to take it all in. I will be interested to know if I have understood this correctly
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John Graetz

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Leanne and Lorna.  My quick reading of the instructions leads me to the same conclusion as you Leanne.  As I see it the Start and Finish codes are effectively flags which denote the start and finish of payments and are therefore no value payroll items.  I agree with you that the actual top-up payments will use the Top-Up code and this will be the one that has a value attributed to it.
John L G
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Lorna Bock

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Ok next question, If your employee is not working any hours because the business is closed, does the $1500 per fortnight get paid as normal hourly pay or is it all jobkeeper top up?
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Jason Hollis, Head of Product

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This is a TOPUP type Lorna as per the ATO documentation. 
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Leanne

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just to add another question sorry.  I noticed it said to check if your state requires you to deduct payroll tax and that SA dont. We are Victoria. I cant find anything that says if we should or shouldn't be ticking the payroll tax box.  Can anyone help and save me spending hours searching:) 
thanks
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Bruce

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Victorian position is that for most employers (payroll $3m pa) there will be no payroll tax paid in 2019-20 (https://www.sro.vic.gov.au/coronavirus).  However it is silent on 2020-21 so by implication there will be payroll tax in 2020-21.  

Unless there is a massive about face by the State Government, this means that there will be no tax paid on JobKeeper this financial year (if payroll <$3m) and we will have to wait for clarification in respect of employers with payroll >$3m and for next financial year.

However we are still required to report to the SRO and to the best of my knowledge there has not been an announcement as to whether JobKeeper should be reported.
(Edited)
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Bruce

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A couple of questions.
1;  I have some employees who will continue to receive salary >$1500 fortnight.   I assume that I will need to report Start and Finish, but do I report a $0.00 top up amount each pay?

2; what do I do for monthly payroll runs?


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Simon Wood

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I am in the same boat as Bruce - Do we report $0.00 Top up or not enter it at all (normal payslip) except for fortnight 1 with the start FN01. I also assume that we lodge a full file replacement for the pays done on 12 April?
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kathy ridley

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i did a jobkeeper payr un yesterday, first one, then an employee changed his mind and wanted to do jobkeeper. i did another pay run for him today but the payg tax will not change on his amount, it is staying the same amount as his last pay run, helpppppp???? why wont his change to the correct amount like the others did in yesterdays pay run?