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Verify Your JobKeeper Payments 

This section summarises the changes to your payroll system and processes that accompanied the
12-month long JobKeeper scheme launched in March 2020.

The ATO's JobKeeper scheme ended on March 28, 2021. Monthly business declarations for
JobKeeper fortnights in March needed to be completed by 14 April 2021 to receive final
JobKeeper payments.
If your business was a JobKeeper subscriber, then this article summarises how your payroll
product was adapted to run the scheme and suggests reports you can run, to confirm your
implementation.

In effect there were three phases:
1. Quarters 1 and 2 (30 March 2020 to 27 September 2020) comprised 13 fortnights.
2. JobKeeper Extension starting Quarter 3 (28 September 2020 to 3 January 2021)
comprising 7 fortnights.
3. Quarter 4 (4 January 2021 to 28 March 2021) comprising 6 fortnights.

Start Or Finish Allowances

Dedicated allowance additions after tax were created to announce when an employee was
enrolled or finished with the scheme. They had to be created precisely named as per the ATO's
instruction.

The resulting 1 cent use of these additions was offered to the ATO via STP Reporting. The naming of these components included the fortnight in which they started or ended.

For Example

JOBKEEPER-START-FN04 would be used if an employee commenced on JobKeeper in
the fourth fortnight of the scheme. JOBKEEPER-FINISH-10 would be used if the employee
terminated with you and finished with the scheme in the 10th fortnight.Screenshot_2021-06-09_104000.png

TOP UP

There were three groups of employees associated with JobKeeper.

  1. Employees paid normally; the business was then just reimbursed the value of the scheme
    for the fortnight in play.
  2. Employees stood down who only received the value of the scheme for the fortnight.
  3. Employees who worked and their salary was subsidised up to the value of the scheme for
    the fortnight.                                                  Screenshot_2021-06-09_104146.png
  4. The latter two groups of employees would therefore receive pays in part or full using the dedicated JOBKEEPER-TOPUP taxable allowance. This Top Up was also offered to the ATO via STP Reporting.
  5. Whether or not you paid fortnightly, you had to determine an employee's eligibility for a JOBKEEPER-TOPUP for the prescribed fortnight. You also had to work out the value of the TOPUP.

The scheme changed in September 2020 and again in January 2021.

Then after six months the scheme changed associated with its extension. From 28 September
2020, the JobKeeper payment reduced and was allocated on two streams: TIER1 OR TIER2.

New untaxed allowances had to be applied to an employee's pay in the first fortnight of this quarter to
signal which tier of the scheme the employee qualified for TIER1 at $1200 or TIER1 at $750.

Screenshot_2021-06-09_104449.png

The Tier level was determined by an employee's hours worked per week in a reference period that
was either:

  • The four weeks ending at the end of the most recent pay cycle before 1 March 2020.
  • Or before 1 July 2020.

The reference period was a historical period, so an employee’s tier did not change unless it was
incorrectly entered.
The associated TIER1 and TIER2 JobKeeper payments reduced to $1000 and $650 respectively
the final quarter of the scheme running from 4th January 2021 to 28 March 2021.

Leave Accruals For Those On JobKeeper

Your employees should have continued to accrue leave during their normal working hours.
In the instance where an employee was stood down and was entitled to the JobKeeper at its
various rates, their leave accruals should still have accrued based on the normal hours they
worked before they were stood down.
For some employees, this meant you had to change their leave accrual method from hourly, to
yearly, so that their leave calculation continued without the pay components that normally
triggered the accrual.
This resulted in your creation of a new award to house this yearly accrual and in turn, the affected
employees would be switched to this alternate award.Screenshot_2021-06-09_104837.png

Employer Superannuation Guarantee For Employees On JobKeeper

  • If your employee qualified for JobKeeper but was paid more than the value of the scheme for the
    quarter, then they should have received employer super guarantee on the whole sum paid as
    normal.
  • If the employee was stood down and received JOBKEEPER-TOPUP, or worked some hours
    supplemented by the JOBKEEPER-TOPUP, then your business did not need to offer super on the
    top-up component.

Therefore, the JOBKEEPER-TOPUP allowance need not have been configured as superable in
your setup.
This is not to say that your business couldn't pay a super guarantee on the JOBKEEPER-TOPUP. If
you chose to, then you would have had to overtly tick the box in the JOBKEEPER-TOPUP setup.

End Of The JobKeeper Scheme

The scheme ended on 28 March 2021. No action was required by you. 

Over the duration of the scheme, you might have made use of the dedicated finish components if
an employee left your service or no longer qualified; for example, JOBKEEPER-FINISH-FN05.
These were not needed on the scheme's conclusion.

What Could You Usefully Explore?

There are perhaps two levels of checking and it's down to you how thorough you wish to be.

    1. Application of settings and JobKeeper components. You could:
      • Check your JobKeeper employees each has the correct pay components applied in an
        appropriate PPE.
      • Confirm leave accruals over this time.
      • Check that employees have been returned to an award based on hourly accruals if
        appropriate.
      • Confirm your superannuation configuration excluded the Top Up component and explore
        examples of the resulting employer super calculation.
    2. Confirm employee earnings and JobKeeper.
      • For employees that earned more than the JobKeeper payment you could confirm their time
        associated with the scheme and equate this with payments received from the ATO.
      • For employees who were stood down, or earned less than the JobKeeper payment, you
        could confirm their before deductions earnings reached the value of the JobKeeper
        payment at each phase of the scheme. Again, you could equate the JobKeeper totals with
        that you received from the ATO.

There is no single system report that can answer all these questions. Their solutions will likely
involve drilling down into various reports and compilation in Excel.

  1. Navigate to Reports > Allowances > Year to Date.Screenshot_2021-06-09_105509.png
  2.  Change the date range at the top to capture the 12 months of the scheme. This can be used to confirm employees linked to the scheme via the allowances along with those finished and those correctly linked to TIER1 or TIER2.Screenshot_2021-06-09_105704.png

 

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