Posts Categorized: Employment matters

JobKeeper Alternative Test

So we FINALLY have the JobKeeper Alternative Test!

About time!  So many people who hanging in day by day so it’s quite unbelievable that it gets released only on the morning of Thursday 23rd April.

Finally new fledgling business can ascertain whether they will receive JobKeeper (either for employees or themselves as a business participant).  Or not; in which case many can finally decide whether they should hibernate, contract or close down.

So finally in the short time left before the registration test can we have a full and proper discussion and analysis of clients with new businesses.

If you want to read it, here it is:-

https://www.legislation.gov.au/Details/F2020L00461

 

 

JobKeeper Employee Nomination form

This is the form to be completed by all employees:-

https://tinyurl.com/yd34rxkq

If you are enrolling yourself for JobKeeper:-

  • Please be aware that the ATO page has been crashing.

  • The ATO has yet to make provision for anyone wanting to apply on the basis of projected turnover for the June quarter (which is important for those who won’t qualify on the basis of the actual turnover for March or the projected turnover for April).

  • Make sure you understand the definition of turnover is a modified version of GST turnover.

  • That the ATO are yet to definitively clarify whether turnover should be measure don a cash or accrual basis.

  • New qualifying conditions have been “added today” to business participants that have NOT part of any discussion from some of the most reputable accounting sources in the country.  

Whist this has been released in a rush and there are understandably teething problems, be very careful of making a mistake due to incorrect or outdated information.


Please return to our website for what we believe will be imminent release of the business participant enrolment form – they have to release it soon as business owners need to sign by Sunday!

JobKeeper registrations only open today

There is much to absorb and action.  Moreover, JobKeeper registrations only open today. 

If you are not registered by Sunday 26th, then you won’t be entitled to receive any JobKeeper payment for the first two JobKeeper fortnights.

There are no retrospective payments.

Yes registrations opened today.  Registered already you say?  No you haven’t – you have merely expressed interest. 

To register you need to do so:-

  • Through your business portal.

  • Through your accountant’s business portal.

  • Manually for employers not reporting through STP (not recommended).

Want to know more – then enrol for our webinar today at 4pm

https://zoom.us/webinar/register/WN_KgK3mKcUQHunYb2PW7hwjA

 

JobKeeper – can I claim and how do I claim?

Whilst many businesses cannot claim the PAYG withholding (wages tax) Cash Flow Boost, many more businesses will be able to claim JobKeeper.

Under this stimuli, the government will pay to each qualifying business a flat $1,500 per employee per fortnight.  I say business as the scheme is also open to non-employers such as sole traders, partner of a partnership, a beneficiary of trust and one director of a company.

Even the first JobKeeper payment fortnight has already passed, the registration process will start next week.  The window for that is effectively open for a very short period of time.  Don’t register – no soup for you!

On Monday, will run a webinar in which you will learn:-

  • Whether you are eligible

  • The concept and importance of registering your interest

  • The difference between registering your interest and subsequent application

  • How to register

  • Why you should register even if you believe you may not benefit

  • How to report and claim every fortnight

  • Understand the cash flow shortfall that you will encounter

  • Your ongoing obligations

  • The records you need to keep

  • What happens if you get it wrong

 LEARNING OBJECTIVE – by attending this webinar you will:-

  • Have an understanding of how the system will operate

  • Understand the buzz words and concepts

  • Be able to decide whether yourself, ourselves or recommended bookkeeper will handle both the registration and / or on-going process

  • Any new developments – as this system is far from finalised

  • And as part of this, we will show you the control sheet we have set up to guide you through the process

Effectively we are giving all of this to you on a plate as this has all been built, collated, summarised and systematised on the back of hours attending technical webinars and reading the mountainous pile you can see in the photo below.

Please click on the following link to register for the webinar at 4pm on Monday 20th April:-

https://zoom.us/webinar/register/WN_KgK3mKcUQHunYb2PW7hwjA

 

Another webinar will be run if there is sufficient overflow.  If you can’t attend Monday’s webinar then please action the following matter.

IMPORTANT – you need to register your interest with the ATO IMMEDIATELY if you have not done so already.  This interest notification merely advises the ATO that you intend to claim; it is not in itself registration.  To register your interest, please refer to our blog at:- 

https://www.mrsaccountants.com.au/category/covid-19-strategies/

or 

https://www.mrsaccountants.com.au/register-for-1/

We remind you to keep referring to our web page for important daily blogs, tips and strategies.

 

 

 

 

Register for #2

VECCI (Victorian Chamber of Commerce and Industry) is looking to do more to support businesses in Victoria.

So much so that they are offering free membership for the next year.

VECCI is a terrific resource in opening doors to those who are importing and exporting.  But every business can benefit as they offer:-

  • Two free employment and HR support calls.

  • Free attendance at 4 networking events

  • $700 training credit

  • Amongst many other benefits

Why not give them a go – you have nothing to lose and those HR support services may prove invaluable.

You can register at:-

https://join.victorianchamber.com.au/memberships-gs/?utm_source=GSN&utm_medium=search&utm_campaign=VCCgenericChamber&utm_term=bmm&utm_content=chamberofcommerce&gclid=CjwKCAjw95D0BRBFEiwAcO1KDDxcosGj6vj3D2XUgDXx1F26kZuySY1Frd8gLLaFEan1oAQrTqFnMBoCn-IQAvD_BwE&fbclid=IwAR2bippWddCMXCyZzwJa-9M0tPXYbNW-D7Mexrwyxn-wtiTG-ktv7v6ka_I

Standing down and retrenching employees

Businesses find themselves in desperate times.  Most businesses are cutting costs in order to survive.  And many businesses are laying off workers due to dramatically lower sales.  Even so, there is a right way and a wrong way in standing down and retrenching employees.

Fairwork Australia has a useful article which you can access from the following link.

https://coronavirus.fairwork.gov.au/?utm_content=123884798&utm_medium=social&utm_source=twitter&hss_channel=tw-425561567#stand-down

You should only be standing down and retrenching employees after ensuring that you have complied with FairWork rules and employment agreements. 

Moreover, we recommend engaging an HR specialist to guide you through this process.

And before standing down and retrenching employees, check to see whether you don’t have to.  It just might be that JobKeeper (assuming you qualify) helps you retain those employees.  You will almost certainly need them when times improve. 

So please factor in these considerations should you be considering standing down and retrenching employees .

 

JobKeeper – unannounced details

JobKeeper was passed by by both houses of parliament yesterday. 

But it is yet to be finalised.

The bill as passed gave Treasury the power to legislate the rules.  They have yet to do so.  On past experience, one would be concerned that they narrow the rules and prevent many intended recipients from receiving this crucial stimuli.

We also await details as to what discretionary powers the ATO will give themselves.  

We will post as soon as we have clarity on exactly how this system will operate.

 

Lodgments and ATO assistance

It is critical that you keep:-

  • Lodging activity statements.

  • Reporting under Single Touch Payroll

  • Meet your super guarantee obligations

Whilst there are various forms of relief available, you are still required to meet all your ATO compliance obligations.

And whilst there are payment extensions to a certain ATO taxes or some are being waived, there is no extension in regard to employee super.  It is also important to note that the two-part penalty of a 200% penalty and non-deductibility of anything paid late remains in place.

Paying employee’s super has always been a business’s number one obligation; now even more so!

The deadline for reporting and paying March quarter superannuation is April 28.  As some clearing houses take up to 8 business days to pass on any payment into a super fund, we strongly recommend paying the super by this time next week.

The stimulus packages include such concessions being able to vary the March quarter PAYG instalment to nil (and claim back any instalments paid for the September and December quarters),  not paying January to June PAYG withholding and up to a six-month deferral for paying bases, tax shortfalls & FBT liabilities.

We remind you not to lodge your March quarter BAS without speaking with us first.

We take this opportunity to remind you to return to this web page for daily blogs on a variety of short videos and business survival tips (including health and well being).

As we are all in this together, we are determined to help as many business owners as possible.  We would therefore appreciate you passing on a link to any article you find of interest to your team, family, friends and business associates.

Register for #1

There are a number of benefits and stimulus incentives that business owners should register for ASAP.

#1 would be to register for the JobKeeper scheme.

Even if you think you don’t qualify or don’t qualify based off March 2020, we recommend registering now.

You can do so at :-

https://www.ato.gov.au/general/gen/JobKeeper-payment/

Please return to our web site for other suggested registrations and new stimulus benefits as they arise.

We are also welcome any query you may have.

 

JobKeeper – the top 10 unanswered questions

Let me begin by saying I appreciate have very difficult it is for the government to deal with this unfolding mess.  There is simply not enough hours in the day to devise stimuluses, implement them and if doing so, consider all the nuances.

And as with any change, there are many unintended consequences.

The JobKeeper incentive was a terrific initiative to keep people employed.

However, there are many unresolved questions.  Even after the release of a second Treasury fact sheet.

The JobKeeper incentive relies on two key sources of information:-

  • Reported payroll numbers. This will undoubtedly be through Single Touch Payroll but extra reporting is required.

  • Demonstrating to the ATO that turnover has fallen by 30% or more.  It appears that the reporting mechanism will be through the BAS (which is quarterly for most people).

10 of the biggest unresolved aspects are:-

  1. Whilst the back end of March has been terrible from many businesses, the first few weeks were okay.  This means that many businesses will not qualify for the month of March which is when the program commences.  So if they do qualify in April, they won’t receive anything until the June BAS is lodged?

  2. Most businesses report GST on a cash basis.  Cash is received after a sale is made.  If their sales have fallen, then the BAS won’t reflect that.

  3. The ATO though can exercise its discretion (never favourably it seems).  They might require such simple things as sales data – or more.  They could be quite intrusive.  It will cost time and money providing this information.  It will undoubtedly cause delays.  It will be some time before they pay out.

  4. It should be noted that companies report gross income when they pay PAYG Instalments.  But not all company must make profits.  Moreover, trusts and partnerships do not report income – so they will have to provide additional information.

  5. It is unclear whether businesses that are part of a group are assessed in their own name or as part of that group.

  6. How about a service trust?  Are they assessed as part of a group with the actual business or assessed in their own right?

  7. Will there be integrity rules?  If so, will they disqualify more than half of all small businesses as did the PAYG WH concessions?

  8. It appears that you have to satisfy the 30% reduction in income from the year before on a month by month basis.  But what about those businesses which were affected by seasonal factors and 2019?

  9. The initial fact sheet indicated that a sole trader that employs would miss out.  How is that fair?  You reckon that would have been fixed by the second fact sheet but it hasn’t.

  10. It is already been made clear that SG super need only be paid on the employees ordinarily wage – so if their normal wage is $1,000, super need only be paid on that amount; not on the $1,500 received.  But neither WorkCover nor the State Revenue Office (Pay-roll Tax) has stated whether they will levy on the actual wage or the boosted amount.

There are many more unanswered questions anomalies and unfair outcomes.  Hopefully all of these are resolved before Wednesday – that is when Parliament has been recalled to sit and pass this legislation.

We will keep you posted so please return is webpage for more updates and other blogs.

In the meantime, we are happy to answer any question you may have.