JobKeeper is a wage subsidy scheme introduced by the Federal Government to support businesses impacted by COVID-19. The program is designed to help employers retain Australian employees during the downturn and to enable businesses to restart operations more quickly once restrictions ease.
We recognise that JobKeeper involves a significant amount of detail and ongoing change. For this reason, SapphireOne continues to provide guidance to help you implement and maintain JobKeeper correctly within Payroll/HR.
As new information and updates are released regularly by the ATO, all clients are strongly encouraged to review the instructions below, even if JobKeeper payments were previously set up in line with our earlier article SapphireOne is now JobKeeper Ready. This will ensure your configuration remains compliant with current ATO reporting requirements.
JobKeeper start and finish dates
Employers are required to report JobKeeper wage payments for eligible employees through Single Touch Payroll (STP). In addition, the ATO must be notified of the start date of the first JobKeeper fortnight being claimed. Failure to report the correct start date will result in the forfeiture of the reimbursement for that period.
Employers must also notify the ATO if JobKeeper payments cease for an employee. However, we currently recommend that no Finish date be entered unless JobKeeper eligibility has ended. This approach reduces the risk of prematurely stopping claims.
Please note that this guidance may change if the Government issues further updates. SapphireOne will continue to communicate any changes via our blog.
A Finish date must be entered if either the employer or employee becomes ineligible while the JobKeeper scheme is still active. Common reasons for ineligibility include:
- Receiving workers’ compensation payments
- Receiving Parental Leave Pay
- Receiving Dad and Partner Pay
- Cessation of employment
- Changes to citizenship or visa status
Updating JobKeeper payments in SapphireOne to comply with ATO guidelines
If JobKeeper has already been configured in SapphireOne, the following adjustments must be made to ensure compliance with the latest ATO reporting rules.
- Do not enter a JobKeeper 2020 Finish date.
- Set the JobKeeper Allowance multiplier to
1.00.
This multiplier must also be updated in Working Transactions for each employee eligible for JobKeeper payments.
Four example scenarios for processing JobKeeper payments
The following scenarios demonstrate how to correctly process JobKeeper payments within SapphireOne payroll.
The ATO has prescribed strict naming conventions for JobKeeper-related payments. These must be followed exactly. If incorrect naming is used, STP submissions will fail and reimbursement claims may be delayed or rejected.
Scenario 1: Employee Alex earns $2,000 per fortnight
Alex is paid a gross wage of $2,000 per fortnight, which exceeds the JobKeeper minimum.
- No JobKeeper Allowance entry is required in Working Transactions
- Provided a JobKeeper Start date has been set, SapphireOne will automatically report JobKeeper via STP
Scenario 2: Employee Bruce earns $500 per fortnight
Bruce is paid a gross wage of $500 per fortnight, which is below the JobKeeper minimum.
- Enter a JOBKEEPER-TOPUP Allowance of $1,000
- This ensures Bruce receives the required $1,500 gross per fortnight
Scenario 3: Employee Chris is stood down (40 hours per fortnight)
Chris has been stood down but remains eligible for JobKeeper.
- Enter his normal 40 hours at a Pay Rate of $0.00
- This allows leave accruals to continue
- Set the JOBKEEPER-TOPUP Allowance to $1,500
If the system does not allow a Pay Rate of 0.00, enter z as the Alt Rate before entering the Pay Rate.
Scenario 4: Incorrect JobKeeper payment previously processed
David works in Payroll and previously paid an employee $500 per fortnight but incorrectly used Bonus/Other instead of the required JobKeeper naming conventions. This must be corrected to enable reimbursement.
There are two methods available.
Scenario 4 – Method 1: Two separate pay runs
- In the first pay run, create two Allowances:
- JobKeeper Allowance:
+1000 - Incorrect Allowance:
-1000
- JobKeeper Allowance:
- In the second pay run, process the payment correctly as per Scenario 2
Scenario 4 – Method 2: Adjustment within a single Working Transaction
- Create three Allowances in Working Transactions:
- Normal Salary:
+500 - Incorrect Allowance:
-1000 - JobKeeper Allowance:
+2000
- Normal Salary:
This results in:
- A net JobKeeper payment of $1,500, and
- Correction of the previously misclassified payment
Use this corrected Working Transaction for the next pay run.
Once payroll processing is complete, review the payslip to confirm tax has been withheld correctly. Superannuation treatment will apply in line with current JobKeeper rules.
After payroll is finalised, submit your STP file to the ATO directly from SapphireOne to complete the reporting process.
Please book a support call via our website, in case you have any questions or need any further assistance.