JobKeeper Information For Sole Traders, Small & Medium Business Employers
Make Sure Your Business Is Eligible for JobKeeper and Won't Miss Out On Government Stimulus That Employers Are Entitled To!
Please Note That Only Employers Are Required To Register For JobKeeper
Are You An Eligible JobKeeper Employer?
Employers will be eligible for the JobKeeper payment if all of the following apply:
- You carried on a business in Australia (held an ABN and were actively trading) or were a not-for-profit organization as a 1st March 2020
- You employed at least one eligible employee on 1 March 2020
- Your eligible employees are currently employed by your business for the fortnights you claim for (including those who are stood down or re-hired)
- Your business has faced a
- 30% fall in turnover (aggregated turnover of less than $1 billion), or
- 50% fall in turnover (aggregated turnover over $1 billion), or
- 15% fall in turnover (for ACNC-registered charities)
"Business Participants"
A non-employee individual is an “eligible business participant” of your entity for the fortnight if they meet all of the following:
- They are an individual not employed by your entity
- They are actively engaged in the business carried on by your entity (at 1 March 2020 and for the fortnight you are claiming).
- They are not an employee (other than a casual employee) of another entity.
Your Employees - Are they Eligible For JobKeeper?
Employees are eligible for JobKeeper Payments if they:
- are employed by you (including those stood down or re-hired)
- were either a
- permanent full-time or part-time employee at 1 March 2020
- long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 March 2020 and not a permanent employee of any other employer
- were an Australian resident as at 1 March 2020 within the meaning of the Social Security Act 1991
- were not in receipt of any of these payments during the JobKeeper fortnight
- government parental leave or Dad and partner pay
- a payment in accordance with Australian worker compensation law for an individual’s total incapacity for work
You cannot claim for any employees who:
- were first employed by you after 1 March 2020, or
- left your employment before 1 March 2020, or
- have been, or have agreed to be, nominated by another employer.
Casual employees are not eligible unless they were employed by you on a regular and systematic basis from 1st March 2019.
Sole Trader JobKeeper Eligibility
Sole traders and some other entities (such as partnerships, trusts or companies with owner payments that are outside wages) may be entitled to the JobKeeper Payment. Your entity may be eligible for the JobKeeper Payment if you:
- have a non-employee individual who is actively engaged in the operation of the business (eligible business participant)
- meet the other relevant eligibility requirements (above)
There is a $1,500 JobKeeper payment per fortnight for one eligible business participant. If your entity also has employees, these employees fall under the normal rules.
A sole trader, who is both the business entity and an eligible business participant, will receive the JobKeeper payment directly into the bank account.
Employers Enrolling in JobKeeper
Bookkept can enrol you for the JobKeeper payment. These are the steps we will undertake:
- Step 1 – Check you and your employees meet the eligibility requirements
- Step 2 – Make sure you continue to pay at least $1,500 to each eligible employee per JobKeeper fortnight (even if they weren’t receiving that before), and make catch up payments if required
- Step 3 – Notify your eligible employees that you are intending to claim the JobKeeper payment on their behalf and check they aren’t claiming JobKeeper payment through another employer or JobSeeker if they’ve already been let go
- Step 4 – Send the JobKeeper employee nomination notice to your nominated employees to complete and return to you by the end of April if you plan to claim JobKeeper payment for April
- Step 5 – From 20 April 2020, we will begin to enrol you for the JobKeeper payment using the ATO Portal
- Step 6 – Specify the estimated number of employees who will be eligible for the first JobKeeper fortnight (30 March – 12 April) and the second JobKeeper fortnight (13 April – 26 April) and continue do this for a maximum of 6 months based on eligibility
Paying Your Eligible Employees
You must pay the minimum $1,500 before tax to each eligible employee per fortnight to claim the JobKeeper payment for that fortnight.
If your eligible employees earn less than $1,500 per fortnight before tax, you must pay them at least $1,500 for each fortnight to claim the JobKeeper payment. This is a ‘top up’ of their salary or wages and will ensure they remain eligible. This will be a cash flow problem for many businesses, and we urge you to contact us to create a budget & plan for this.
For the first two fortnights (30 March – 12 April, 13 April – 26 April), the ATO will accept the minimum $1,500 payment has been paid by you even if it has been paid late, provided it is paid by you by the end of April.
If your eligible employees earn more than $1,500 per fortnight, you should continue to pay them their regular salary or wages. However, you will only receive $1,500 for each eligible employee. Any amount you pay above $1,500 per fortnight is not subsidised by the JobKeeper payment.
If an employee has been stood down after 1 March 2020, you can start paying them $1,500 per fortnight to qualify for the JobKeeper payment for that employee.