The next steps in the JobKeeper enrolment process are now open on the ATO business portal.
Step 1: needs to be completed by 31 May in order to claim JobKeeper payments for the initial JobKeeper periods (the fortnights ending in April and May).
The additional steps that are now open are:
Step 2: Identify and maintain your eligible employees. You can now identify each person that you will claim the JobKeeper payment for on the business portal. This includes the identification of eligible employees and business participants.
Step 3: Make a business monthly declaration. You are now able to complete the monthly declaration; you will need to provide the business’s current and projected GST turnover and reconfirm eligible employees. This is the step that confirms you are entitled to JobKeeper payments for a month.
New form for eligible business participants (excluding sole traders)
The ATO have released a new form to complete for eligible business participants trading through a structure (excluding sole traders). You need to complete this form if you are nominating an eligible business participant and retain it on file in your JobKeeper records. Please find it here.
Update of JobKeeper rules
On 1 May 2020, a new legislative instrument was released updating the JobKeeper rules to provide:
• A modification to the turnover test for employment entities, for the purpose of determining eligibility of special purpose service entities that provide employee labour to group members. In order to be eligible for the modified turnover test:
- The employer entity must be a member of a consolidated group, or part of a group that is eligible to form an income tax consolidated group; or be a member of a GST group; and
- The employer entity’s principal activity is supplying other members of the group with employee labour services;
- The employer entity doesn’t supply employee labour services to entities that are not members of the group and;
- The Commissioner doesn’t determine that the modified turnover test would be unsuitable for the employer entity.
Please note the ATO is still to provide guidance on this modified turnover test on their website.
• The rules also enact other changes that were announced last week by the Treasurer.
Further guidance on the alternative tests
The ATO has released further guidance on how to apply alternative tests for fall in turnover. This is only available in eligible circumstances and when the basic turnover test has not been satisfied. Details can be found here.
Please contact your us for assistance with determining your eligibility for JobKeeper.