The JobKeeper program is one of the most significant financial support measures introduced during the COVID-19 pandemic. It is designed to help employers retain staff in the event that turnover has dropped and the employer is considering lay-offs and reduced hours..
The JobKeeper payment is available if your business employs people. It is available even if you are the only employee, and also for for Sole Traders. To claim the payment your business must have faced, or expects to face, a 30% fall in turnover as a result of COVID-19.
Here are some examples we have dealt with:
Business closed due to COVID restrictions
Louise owns a Jump Swim franchise. Due to NSW Government restrictions the business is in hibernation but eventually it will re-open. Louise has well trained staff who are vital to the success of her business — but right now she has no income to pay them.
The JobKeeper program will reimburse $1,500 per fortnight towards the cost of wages for each employee. This means that Louise can continue to pay the employees even though the centre is closed.
Turnover significantly reduced in fast food business
Kim owns a fast food franchise that operates from a food court. The shopping centre is open and Kim has decided to keep the store trading at reduced hours. Turnover is down by 80 percent.
The JobKeeper program means that Kim can afford to stay open even with the reduced turnover because her wage costs are covered. It helps her be confident that her key team members will be available for work now and in the future.
Sole Trader is also eligible
Martin owns a service franchise which he operates as a sole trader. He has no employees.
April has turned out to be a good month for turnover as Martin received payments from projects that commenced earlier in the year. However, he expects turnover to decrease by at least 30% over the next few months.
Martin will be eligible to claim the JobKeeper payment because he anticipates a fall in revenue. This money will help him pay the bills while he continues to seek out business.
How do I claim the JobKeeper payment?
In order to receive the JobKeeper payment you need to do the following:
Assess your eligibility. This means checking that your turnover has (or will) decrease by 30%. Also check whether your employees are eligible (you may find that some employees are eligible and some are not).
Obtain employee declarations. Both you and your employees must complete the ATO nomination form relating to JobKeeper claims. You’re required to retain this for 5 years.
Register with the ATO from 20th April. You are required to Register with the ATO and provide certain details to them about your business. This information must be submitted online.
Update your payroll records. To participate in JobKeeper you need to have Single Touch payroll enabled software. It needs to be correctly set up to track employees who are receiving JobKeeper payments.
Pay your employees. The JobKeeper program reimburses you $1,500 per employee per fortnight for wages that have been paid. Payments will be notified to the ATO via the Single Touch Payroll system. It’s important to note that the full $1,500 must be paid to the employee (less deduction of income tax).
Lodge Business Monthly Declaration with the ATO. To comply with the JobKeeper requirements, each month you need to advise the ATO of eligible employees and turnover.
Assistance with your JobKeeper Registration
If you would like assistance to register for and implement the JobKeeper program in your franchise, please contact us or call Kate on 0466 376 386.
We charge $250 + gst to handle your Registration and Payroll Setup and $150 + gst per month for the ongoing reporting.