The JobKeeper Payment is a wage subsidy made to eligible businesses, charities, and not-for-profits affected by the Coronavirus to help them retain employees. Payments under the scheme apply from 30 March 2020 to 27 September 2020.
Employers who choose to participate must nominate all eligible employees. Participation is an all-in or all-out decisionfor eligible employees and cannot be applied selectively.
If you intend to participate, you should register your interest on the Australian Taxation Office (ATO) website to receive updates and instructions on how and when to claim payments. Employers were advised to enrol and pay employees by 30 April 2020 to claim earlier periods, with a final enrolment deadline of 30 May 2020.
Before processing JobKeeper payments in SapphireOne, it is important to understand eligibility criteria, employer responsibilities, and payment rules. Note that JobKeeper reimbursements are paid by the ATO one month in arrears.
Eligibility Criteria for JobKeeper Payments
To receive JobKeeper payments, both the employer and the employee must meet all eligibility criteria.
Employer Eligibility
Employers are eligible if they are businesses (including companies, partnerships, trusts, and sole traders), charities, or not-for-profits that meet all of the following conditions:
- Have a turnover of less than $1 billion and have experienced a 30% or greater reduction in revenue, or
- Have a turnover of $1 billion or more and have experienced a 50% or greater reduction in revenue, and
- Had at least one eligible employee on 1 March 2020, and
- Continue to employ eligible employees (including stood-down or re-hired employees) during all relevant JobKeeper fortnights, and
- Are not listed in any ineligible business categories.
Example – Turnover Test Period
John operates a software company and applies for JobKeeper during the first fortnight of the scheme, which ends on 12 April 2020.
The turnover test period can be either:
- The month of March 2020 or April 2020, or
- The quarter from 1 April 2020 to 30 June 2020.
Example – Relevant Comparison Period
John compares his turnover to the same period in 2019:
- April 2020 is compared with April 2019, or
- The quarter from 1 April 2020 to 30 June 2020 is compared with 1 April 2019 to 30 June 2019.
Further details are available on the ATO website.
Employee Eligibility
Employees are eligible if they are currently employed and meet all of the following conditions:
- Were employed by an eligible employer on 1 March 2020 (full-time, part-time, or fixed-term), or
- Were a long-term casual employee employed on a regular and systematic basis for at least 12 months and not permanently employed elsewhere, and
- Were 18 years or older at 1 March 2020 (special rules apply for younger employees), and
- Were an Australian resident or a Subclass 444 visa holder who was an Australian resident for tax purposes, and
- Did not receive government parental leave, Dad and Partner Pay, or workers’ compensation payments during the relevant JobKeeper fortnight.
Read More on Eligible Employees
Responsibilities of Employers and Employees
Employers must provide each eligible employee with a JobKeeper Employee Nomination Notice. This notice confirms the employer’s intention to participate and requests employee consent to be nominated.
These forms:
- Must be retained as business records
- Do not need to be submitted to the ATO
The notice can be accessed via following link:
JobKeeper Payment Employee Nomination Notice
Employers are also required to make monthly declarations through the ATO Business Portal, reporting eligible employees and turnover via STP and SBR2.
How Much to Pay Under JobKeeper
Employers must pay a minimum gross amount of $1,500 per fortnight to each eligible employee, with PAYG tax withheld as applicable.
Key payment rules:
- Employers are reimbursed a maximum of $1,500 per fortnight per employee
- If an employee normally earns less than $1,500, the employer must pay a top-up to reach the minimum amount
- Failure to pay the full $1,500 forfeits the JobKeeper claim for that employee for that fortnight
The first JobKeeper fortnight commenced on 30 March 2020 and the final fortnight ends on 27 September 2020.
All JobKeeper payments:
- Are assessable income to the business
- Are deductible under normal tax rules
- Are not subject to GST
- Do not require compulsory superannuation contributions on the JobKeeper component
How to Process JobKeeper Payments in SapphireOne
There are five setup steps required the first time you process JobKeeper in SapphireOne. Steps 1–3 only need to be completed once.
Step 1 – Create a JobKeeper Allowance
Go to Payroll > Administration > Allowance > Create New
Create a new allowance with the following values:
- Type ID: JK
- Description: JOBKEEPER-TOPUP
- Type: Before tax
- Multiplier:
- 750 (weekly), or
- 1500 (fortnightly), or
- 3250 (monthly)
- Calculation Method: Fixed amount, Allowance
- Payment Summary / STP Position: Allowance A (Other)
Step 2 – Set JobKeeper Start Date for Employees
Go to Payroll > Administration > Employee > Select Employee > Details > Controls > JobKeeper 2020
- Enter the JobKeeper start date
- Leave the finish date as 00/00/00
Step 3 – Add JobKeeper to Payment Summary Configuration
Go to Utilities > Controls > Company > Modify Company > Details > Allowances
- Add JobKeeper to the appropriate Allowance field
Step 4 – Apply JobKeeper Pay Item to Eligible Employees
Only apply the JobKeeper allowance to employees who:
- Earn $1,500 or less per fortnight, or
- Have been stood down
Go to Payroll > Payroll > Working Transaction
- Select the employee
- Add JobKeeper to the Working Paysheet
- Click Recalculate
Step 5 – Run the Pay Run
Go to Payroll > Payroll > Pay Run
- Select employees
- Process payroll as normal
After processing:
- Review the payslip to confirm tax treatment
- Submit the payroll event via SapphireOne Single Touch Payroll to the ATO
JobKeeper processing in SapphireOne ensures compliant payroll handling, accurate STP reporting, and streamlined reimbursement tracking during the subsidy period.