JobKeeper Payment Government Initiative in AU

Update 9/4/2020 am

Infinet Cloud Payroll update bundle now contains automated creation of the AU Stand Down Leave and sub tupes for JobKeeper payments (with and without Super). The update will take about 10 minutes and can be pushed at any time. Please email support@infinetcloud.com to request update 20.1.02-JK .

Update 06/04/2020 am

This measure is not yet law and the Federal Government is sitting Weds 8th to pass the law. It is expected to be unopposed. You should consult your own legal advice if you are wondering if you should enact this measure before the legislation is passed.
Things are changing regularly in this difficult situation. The criteria on who this applies to appears to be being reviewed and may be expanded. https://treasury.gov.au/sites/default/files/2020-04/Fact_sheet_Info_for_Employers_0.pdf
The ATO has not provided guidance on how this should be processed although they indicated in a webinar the payment may be an Allowance with an STP category of Other.
We are considering if we can automate the most basic requirement to simply top up an employees pay to $1500 per fortnight (Equivalent). If possible we will notify customers and we are likely to require that customers request this update via an online form. Additional complexities or other variations will need to be manually managed by customer. Customer will be responsible for updating impacted employees prior to processing payroll.
Many variations and scenarios may exist which impact exactly how this is applied in the system which we may have never encountered before and currently have no guidance from ATO or FWA. Eg. (Salary Sacrifice, Leave, Part period and pro rata payments, Stand down leave)
Please be patient with our support staff who are doing their best to get their heads around this measure and the numerous other variations in payments we are now encountering. Support is experiencing higher than usual volumes of requests so non-urgent responses may be delayed.
We are in the process of creating a new KB article on how we think this could be applied manually in the system based off what we know currently. Once that is available we will link to it here.
If you read everything below you will be just as informed as us!

https://treasury.gov.au/coronavirus/jobkeeper

https://treasury.gov.au/sites/default/files/2020-04/JobKeeper_frequently_asked_questions_0.pdf

Webinar below from TAPS. www.payroll.com.au

Under the JobKeeper Payment, businesses impacted by the coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.

Please see links below for more information regarding this. As an employer it is your responsibility to understand and comply with legislation. Please ensure you read below to understand elegibility critieria for your company and your employees.

Employer Obligations

To receive the JobKeeper Payment, employers must:

Apply at ato.gov.au and assess that they have or will likely experience the required turnover decline.
Provide information to the ATO on all eligible employees. This includes information on the eligible employees engaged as at 1 March 2020 and those currently employed by the business or not-for-profit (including those stood down or re-hired). For most businesses or not-for-profits, the ATO will use Single Touch Payroll data to pre-populate the employee details for the business or not-for-profit.
Ensure that each eligible employee receives at least $1,500 per fortnight (before tax). Employees who receive $1,500 per fortnight or more from their employer will continue to receive their regular income according to their prevailing workplace arrangements. For employees that have been receiving less than this amount, the employer will now need to pay them, at a minimum, $1,500 per fortnight before tax.
Notify all eligible employees that they are receiving the JobKeeper Payment.
Continue to provide information to the ATO on a monthly basis, including the number of eligible employees employed by the business.

Additional Links

What do we need to do?

Please read and understand the above. As we review this requirement in more detail we will update this page with further information on the possible solutions available within our software. Customers will be responsible for any updates to employee settings or pay components that may be required to process this payment.

Here is what TAPS have to say on the matter at this time.: https://www.payroll.com.au/

Yesterday the ATO announced a new JobKeeper payment for employers.

Under the JobKeeper Payment, businesses impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying their employees. Affected employers will be able to claim a fortnightly payment of $1,500 per eligible employee from 30 March 2020, for a maximum period of 6 months.

For now, there are three things you need to know.

1.      At this stage it is just an announcement. The legislation still needs to be passed.
2.      If your business has been affected by COVID-19 you can register your interest with the ATO at https://www.ato.gov.au/general/gen/JobKeeper-payment/
3.      Information on how to apply and pay your employees will be available soon.

TAPS is meeting with the ATO today to provide consultation and to gather more information.

We know you have lots of questions, but this announcement was only made yesterday by the PM, it is still not law, and there are still things that need to be worked out.

Stay tuned for more information