Is your business prepared for the changes coming at the end of the initial COVID-19 emergency period? We know that these times are challenging and navigating your way around complex changes can be stressful. To help you to be prepared, East Coast BBS have summarised the key information; and to help you communicate your plans with your employees, we have created template letters, tailored to each business situation, for you to download and update as needed.
JobKeeper 1.0 – Until 27 September 2020
If you currently qualify for JobKeeper, then you will continue to qualify up to 27th September. Your business will receive its final entitlement under JobKeeper 1.0 in early October.
There were some changes to eligible employees announced on 14th August, so double check if any additional employees may now qualify. JobKeeper 2.0 – Post 28 September 2020 This is referred to as the 'JobKeeper Extension'. There are some changes that will apply from 28th September which are summarised below.
You need to re-qualify to determine if you will be eligible for JobKeeper support for the December 2020 Quarter, and then re-qualify again to see if you qualify for the March 2021 Quarter.
Turnover needs to be down 30% (in most cases) for the quarter. For example, to be eligible for JobKeeper support for the December 2020 Quarter, you must be down 30% (in most cases) when comparing the BAS income from the September 2020 quarter, to the September 2019 quarter. To qualify for the 4 January 2021 to 28 March 2021 quarter (March 2021 quarter), you must re-qualify using the December 2020 quarter compared to the December 2019 quarter as the test period.
The JobKeeper Payment Rate has also changed:Period 28 September 2020 to 3 January 2021
$1,200 per fortnight for eligible employees for eligible employees who in the four weekly pay periods before 28 September were working in the business for 20 hours or more a week.
$750 per fortnight for employees who were working less than 20 hours per week.
Period 4 January 2021 to 28 March 2021
$1,000 per fortnight for eligible employees for eligible employees who in the four weekly pay periods before 28 September were working in the business for 20 hours or more a week.
$650 per fortnight for employees who were who were working less than 20 hours per week.
The minimum payment to employees per fortnight mirrors the payment rates above.
Actions required by you (please reach out if you need any help with the following):
Check whether any new employees are eligible for the final payments in September. Where new employees are eligible, you must complete the necessary declaration and pay the minimum amounts, and indicate eligible on the monthly reporting to the ATO.
Complete your final reporting for the current JobKeeper entitlement in early October, remember to check for employees who are eligible in the step above.
Check if you are likely to be down 30% in the September 2020 quarter, when comparing to the September 2019 Quarter. East Coast BBS clients should have received an email with September 2019 figures and Jul-Aug 2020 figures for comparison. If you have not received this email, please get in touch. East Coast BBS are here to assist anyone if required.
Communicate these changes and what action you plan to take with your employees. To help we have created template letters for each situation your business may be in:
Advice to employees about October to December – if your business is no longer eligible for JK Advice to employee about October to December – if JK eligibility is unknown Advice to employees about October to December – if your business is still eligible for JK If you have any questions, or if East Coast BBS can be of assistance during this time, please get in touch on 02 4402 8913 or firstname.lastname@example.org