How Can I Add New Employees To Jobkeeper 2.0?

October 17, 2020
 
Jobkeeper 2.0
 

Introduction

The JobKeeper 2.0 Payment Scheme was originally due to run until 27th September 2020. However, it will now continue to be available to eligible businesses and not-for-profits until 28th March 2021.

The payment of $1,500 per fortnight will be reduced to $1,200 per fortnight from 28th September 2020 and to $1,000 per fortnight from 4th January 2021. From 28th September 2020, lower payment rates will apply for part-time employees.

While the deadline for fortnightly payments commencing August 3rd and 17th has now passed, employers wanting to add new workers for forthcoming pay periods can do so using the Single Touch Payroll enabled software.

Many businesses have been filing their monthly declarations through STP software throughout the life of the program, but there are also processes supporting those who have not been using software or reporting through STP.

These businesses need to manually enter eligible employees including the new ones, to Apply for Jobkeeper 2.0 in Australia, through the ATO’s online business portal, and will not benefit from a pre-populated form that allows other businesses to merely confirm the eligibility of listed staff.

From 3rd August 2020, all individuals employed as of 1st July 2020 will be re-evaluated for their eligibility for the scheme. More employees can qualify for the scheme including individuals who were employed on 1st July 2020. Employers will need to obtain Nomination Notices from the newly eligible employees. The 12-month test for long-term casual employees is now the previous 12 months as at 1st July 2020.

The Australian Taxation Office (ATO) has issued some guidelines for businesses for adding newly eligible employees and provided advice on how to do so with Single Touch Payroll (STP) enabled software.

Nominating new employees

You can nominate new workers as eligible for the Payment scheme from 3rd August 2020.

The new ones must have been employed by you as of 1st July 2020 and should meet other eligibility criteria. This can include employees:

  • You employed after 1st March 2020.
  • Were employed by you on 1st March 2020 and did not meet the eligibility requirements, but do as of 1st July 2020.
    For example, they turned 18 after 1st March 2020 but before 1st July 2020.
  • For the fortnights commencing on 3rd and 17th August 2020, employers have until 31st August 2020 to meet the wage condition for newly eligible employees under the 1st July eligibility test.

 

 

Adding newly eligible employees

1.Single Touch Payroll using JobKeeper payroll codes

To complete your business monthly declaration for August fortnights:

  • Provide the start fortnight through the STP software to update newly eligible employees. Allow 72 hours for this information to get updated in your declaration form.
  • Only include newly eligible fortnights from 3rd or 17th August 2020 (I.e. fortnight 10 or 11).
  • Include new workers in the fortnightly totals when completing your business monthly declaration.

 

2.STP without JobKeeper  2.0 Codes or not reporting through Single Touch Payroll

To complete your business monthly declaration for August fortnights:

  • Use ‘Maintain employees’ to confirm or add eligible workers.
  • Confirm eligibility reported through Single Touch Payroll pre-populated in the form.
  • Manually add up to 40 eligible employees not listed in the form.
  • Include new employees in fortnightly totals when completing your business monthly declaration.

 

Full-time vs part-time

Employees who work more than 20 hours per week will be regarded as full-time. The ones (including casual) who work less than 20 hours per week will be regarded as part-time. The criteria used here are different from the usual employment law test which is based on 38 hours per week.

The criteria for determining full-time or part-time will be based on the hours worked in the four weeks during the last pay period prior to 1 March 2020 or 1 July 2020.

The Commissioner may release additional tests. There may be some concessions for those who worked less than 20 hours per week in those four week periods due to being on leave. They may continue to be treated as full-time if they generally work more than 20 hours per week.