This step is for those of you who have been paying JobKeeper payments to your employees. The goal is to encourage you to review your JobKeeper setup and payments so far, perhaps identify any issues, and point to possible solutions.
Of concern are:
- ensuring you have paid the full $1500 per JobKeeper fortnight
- have still accrued leave for JobKeeper payment employees
- that Super Guarantee has been correctly applied on what would have been their ordinary earnings where appropriate.
If you are paying JobKeeper, then you will have created a specific JOBKEEPER-TOPUP Allowance configured as an Addition before tax with an ATO Type of Other.
It must have a Description of JOBKEEPER-TOPUP entered exactly as below. Notice that Include in Super Calculation is not ticked. Therefore, when applied, this Allowance will not trigger super guarantee payments.
In the ATO Payment Summary tab, notice that it is configured for both traditional ATO Payment Summary and for STP Reporting.
An extra step you may wish to explore is how this has resolved in the employee file, particularly if you value the ATO Payment Summary report when balancing.
Below is an example of an employee file for someone who has received JOBKEEPER-TOPUP and displayed is their Payments > Allowance section. Notice that the Pay Sum column has a tick against all those allowances that are to appear on the ATO Payment Summary and so, on the ATO Payment Summary Report.
There are three possible payment scenarios for JobKeeper:
- Normal pay which equals or exceeds $1500 per fortnight
- Ordinary pay plus JOBKEEPER-TOPUP equals $1500 per fortnight
- JOBKEEPER-TOPUP Addition only to the value $1500 per fortnight
In this first scenario, you have employees who qualify for JobKeeper payments and their normal pay usually equals or exceeds $1500 per fortnight. In which case, there is no need to use the JOBKEEPER-TOPUP Allowance.
The presumption is that you have triggered JobKeeper for these employees by including the appropriately numbered JOBKEEPER-START-FNxx Allowance.
If employees in this group have left your service or became ineligible, then another presumption is that you have applied for the JOBKEEPER-FINISH-FNxx Allowance in the JobKeeper fortnight after they were paid their termination pay.
If you can agree to all these variables, then you can rely on their leave accrual to work as normal, for super guarantee to calculate correctly and that they have been paid JobKeeper correctly.
In this second scenario, you are using the JOBKEEPER-TOPUP Allowance to make up the difference between their ordinary pay and the $1500 JobKeeper payment. Again, the presumption is that the start and finish JobKeeper Allowances have been appropriately applied for the commencement and, the less likely end of JobKeeper payments.
In Timesheet terms, the expectation is that you will complete their timesheet with normal hours and other usual pay components plus the JOBKEEPER-TOPUP Allowance to bring their total Gross to $1500 per fortnight.
As they are receiving their ordinary pay plus top-up, then you can rely on their leave accrual to calculate as normal and for their super guarantee to work out correctly. The key factor to consider then is: have you achieved $1500 for each JobKeeper fortnight for qualifying employees?
A User Defined Query can be used to confirm whether employees have reached $1500 per fortnight.
Below is an example of this User Defined Query: “Jobkeeper-top-up Payment Guide”:
So, in this second scenario, you identify JOBKEEPER-TOPUP employees that have not reached $1500 per fortnight and take action to pay the shortfall.
The third scenario is where you have only used the JOBKEEPER-TOPUP pay component to pay the $1500 gross. Again, the presumption is that the start and finish JobKeeper additions after tax has been appropriately applied for the commencement and if required, the end of JobKeeper payments.
Of concern is whether the employee has worked or has been stood down. Also, whether leave has still accrued correctly for these employees. The Sage Knowledge base article on setup of JobKeeper, suggests where employees would normally be on ‘hours worked’ leave accrual Awards, to create copies of these Awards configured as Yearly accruals, then associated these JOBKEEPER-TOPUP paid employees with this alternate Award.
Thus, for stood down employees, the JOBKEEPER-TOPUP pay along with switching them to a ‘yearly leave accrual’ Award is all you need to be concerned about.
If the employee worked then they need to both accrue leave and receive a super guarantee on the equivalent to their ordinary time earnings. Your task then is to establish whether they worked or not. If they did, you may need to create Supplementary Payslips to pay the missing super guarantee. You might also review your pay methodology for these employees so that no further remedial work is required.
Things to remember for Jobkeeper Payments going forward
• The month of August has three fortnights according to the ATO reporting.
• Any new eligible employees need to have the correct fortnight Jobkeeper Start
• Any employees who leave will need to have the correct Jobkeeper Finish fortnight
allowance entered; this should be the fortnight after they finish.
• On completion of the Jobkeeper payments in September there is no need to enter
the Jobkeeper Finish allowance.