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
- Report the Payroll month of April, to get the Total $ PAID Gross in April – eg $2650
- From $3000 subtract the Total $ Paid = $ Top Up – eg $3000 – $2650 – $350
- 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
- Take the ACTUAL hours worked THIS week eg 12 hr x $25 = $300
- The Top up to pay the min $750 less actual hours worked = $750 – $300 = $450
- Type $450 against the JobKeeper Top Up Category
- Ensure PAYG tax is $96
- 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
- Processing JobKeeper in MYOB AccountRight
- Processing JobKeeper in MYOB Essentials
- Processing JobKeeper in MYOB New Essentials
(link to the page if your help doc needs reference to the reporting period)
A turnover calculation tool is in beta and will be publicly released shortly
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