Business Tips – JobKeeper Payment – SIMPLIFIED – How to enter Payroll when pay is under $750 week ($1500 fortnight)


JobKeeper Payment - SIMPLIFIED – How to enter Payroll when pay is under $750 week ($1500 fortnight)
JobKeeper Payment – SIMPLIFIED – How to enter Payroll when pay is under $750 week ($1500 fortnight)

JobKeeper (JK) – Enter Payroll when less than JK

The ATO JobKeeper website was updated on 20 April with pages of how the scheme works.

The 4 main accounting software suppliers in Australia have provided JK instructions and here is a quick overview (detailed links at the end) –

MYOB – instructs to create a new Payroll Category as an Allowance

Xero – have already created a new Payroll Category as an Allowance – supplied

Reckon – are instructing to create a new Payroll Category as an Allowance

Quickbooks Online – are instructing to create a new Payroll Category as an Allowance

Simple example when the pay is less than $750 ($1500 fortnight)

Where an employee earns less than $1,500 fortnight, or $750 week,

  • $750 a week has tax $96 so the net pay is $654
  • $3000 less ($96×4) $384 PAYG = net $2616 net due for 2 fortnights (nearly a month)

To catch up April and ensure at least $3000 Gross paid, or

To catch up to $750 for weekly or $1500 fortnightly on-going, work out the difference required to Top Up.

The first JobKeeper period Fortnight is Mon 30/3 – Sun 12/4 ($1500) and to check if the minimum is paid, it’s easier to take the month of April 1-26 April (min $3000 Gross) – Note – deadline is Friday 8 May to catch up April payments.

April catch up for a month ($3000 min for 2 x $1500 fortnights) for staff earning less than $750 week

  1. Report the Payroll month of April, to get the Total $ PAID Gross in April – eg $2650
  2. From $3000 subtract the Total $ Paid  = $ Top Up  – eg $3000 – $2650 – $350
  3. Enter a Top-up pay allowing for any tax already paid, or the full tax on $3000 which is $384 if no tax in April – that is a Top up pay of Gross $350 (check tax over the month will be $384) less any tax net due.

Stood down employees

The full $750 is allocated to the JobKeeper Pay category less tax $96, or Gross $3000 less tax $384, to catch up April

Ongoing pays

  1. Take the ACTUAL hours worked THIS week eg 12 hr x $25 = $300
  2. The Top up to pay the min $750 less actual hours worked = $750 – $300 = $450
  3. Type $450 against the JobKeeper Top Up Category
  4. Ensure PAYG tax is $96
  5. Net is $654 to pay

Earning over $750 week

There is NOTHING to change – continue regular payroll as usual. The business will get a subsidy (reimbursement) for eligible employees, up to $750 a week.

The ATO is working on fortnightly periods form Mon 30 March of $1500, but payroll can continue as you regularly have it set up, no need to re-align to fortnights, just pay the minimum equivalent for the fortnight periods.

The software steps – see the following links to software solutions for JobKeeper

MYOB logo

Quick Tips for setting up MYOB Payroll

Reckon Logo

Main Reckon Jobkeeper landing page

Jobkeeper reporting payments

Reckon One>

Reckon Accounts (includes Hosted)>

Reckon Payroll Premier 2019/20 JobKeeper Guide>

Reckon STP Mobile JobKeeper Guide>

(link to the page if your help doc needs reference to the reporting period)

Xero X Logo

https://central.xero.com/s/article/Enrol-employees-for-JobKeeper-payments

A turnover calculation tool is in beta and will be publicly released shortly

QB Int logo

JobKeeper QBO setup guide 

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Email info@accountkeepingplus.com.au or call 0407 361 596 Australia

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