Please Note: Customer Service can only support the creation of the required Allowance Codes and how to report the values via STP in Wagemaster. For all other questions that relate to personal circumstances otherwise described will need to be referred to the ATO for their guidance.
ATO JobKeeper Extension
The JobKeeper Payment, which was to end on 27 September 2020, will now continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021. The extension of the scheme applies over the following 2 Quarters, introducing both:
- Lower payment rates per quarter than the initial JobKeeper Payment rate; and
- A tiered-rate approach to workers, based upon average hours worked per week in a reference period (see below), rather than a flat rate for all workers.
Quarter 3 (28 September 2020 To 3 January 2021) Comprises 7 Fortnights Of:
- Tier 1 - $1,200 per fortnight for those working 80 hours or more in any reference period; and
- Tier 2 - $750 per fortnight for those working fewer than 80 hours in any reference period.
Quarter 4 (4 January 2021 To 28 March 2021) Comprises 6 Fortnights Of:
- Tier 1 - $1,000 per fortnight for those working 80 hours or more in any reference period; and
- Tier 2 - $650 per fortnight for those working fewer than 80 hours in any reference period.
The Tier levels average hours per week are determined on hours worked per week in a reference period. For employees, the reference period is either the four weeks ending at the end of the most recent pay cycle before 1 March 2020 or before 1 July 2020. The ATO is also establishing alternative reference periods that can be used where the standard periods are not appropriate. The reference period is a historical period, so an employee’s tier will not change unless it was incorrectly determined.
- If your JobKeeper ends for an employee on 27 September - no action is needed.. (You do not have to enter in JOBKEEPER-FINISH-FNxx).
- If your employees are currently on JobKeeper and they are going to continue on JobKeeper after 27 September; use one of the new codes (JK-TIER1 or JK-TIER2) to indicate the employee's TIER. (instructions below).
- If you have employees starting on JobKeeper from 28 September, you do not need to use JOBKEEPER-START-FN14, only use JK-TIER1 or JK-TIER2 with 1c.
For more information go to ATO JobKeeper Paytment.
New Allowance Tier Description Code Is Required In Wagemaster
After determining which Tier your employees fall under, the following additional STP requirements for the extension of the JobKeeper scheme is needed to successfully report and trigger the ATO JobKeeper extension payment reimbursements.
The creation of JK-TIER1 and JK-TIER2, matching the description exactly and reporting it in STP as the Other Allowance, is critical to you receiving the correct values from the ATO.
STP Reporting Of Tier Level
Use STP (Single Touch Payroll) in Wagemaster to report the new tier level to which you have assessed and assigned eligible employees. The tier level must be reported as an Other Allowance using the specific text descriptions only.
Just like you have previously created the ATO's JobKeeper Start and Finish Allowance description codes - refer to the article How do I set up the JobKeeper Payment? a new Allowance, not taxed, is required and allocated to your employees to report the tier level via STP reporting:
- JK-TIER1 – For those employees who worked 80 hours or more in any reference period. In Quarter 3, they must be paid at least $1,200 per JobKeeper fortnight. In Quarter 4, they must be paid at least $1,000 per JobKeeper fortnight. If these employees are paid less than these amounts, a top-up payment must be made to the specified amounts and reported, as per the current reporting arrangements for JobKeeper-Topup payments.
- JK-TIER2 - For those employees who worked fewer than 80 hours in any reference period. In Quarter 3, they must be paid at least $750 per JobKeeper fortnight. In Quarter 4, they must be paid at least $650 per JobKeeper fortnight. If these employees are paid less than these amounts, a top-up payment must be made to the specified amounts and reported, as per the current reporting arrangements for JobKeeper-Topup Payments.
- JK-TIER1X and JK-TIER2X - These codes may need to be created and reported to the ATO if a mistake is made in the allocation of the initial STP reporting of these JK-Tier allowance descriptions. See the section below - JobKeeper Corrections for more information if required.
Create JobKeeper Tier Allowance
To do this you will need to create two, JK-TIER1, and JK-TIER2.
- Click on Setup > Allowances > Add > Next when you are on the Welcome to the Allowance Wizard screen.
- The Allowance Type will be Standard Allowance > Next.
- Description = JK-TIER1 (Type the description exactly).
- Type = Addition.
- Frequency = Each Pay.
- Amount = enter 1 cent.
- Ensure that the Taxed box not ticked, and the Include In Super Calculation is not ticked > Next.
- On the ATO Payment Summary screen, tick the Show on ATO Payment Summary box and Show As Allowance and tick the Report in STP box and ATO Type - Other.
- Next and Next again to get to the Finish button.
- Repeat the steps above to create a second allowance called JK-TIER2.
- In Wages, select an employee and enter timesheet information if the employee who has worked, or clear the timesheet information if the employee didn't work on the timesheet screen by clicking Clear > Click Next and enter the JobKeeper-Topup value.
- Select Allowances on the left and you will see the JobKeeper-Topup, JK-TIER1, and JK-TIER2 allowances.
- The JK-TIER1 or JK-TIER2 allowance has to be used once for all eligible employees with 1c in Fortnight 14.
- Please Note: Employees are not allowed to switch between Tiers.
JobKeeper Tier Level Corrections:
If an employee is assigned and reported with an incorrect tier level, then the following actions should be taken to correct the tier level. To make the correction in Wagemaster:
- Example 1: Reported JK-TIER1 in error:
Follow the Create Allowance instructions above, but this time it will be JK-TIER1X.
In Wages > Next > Adjustments screen, use JK-TIER1X with 1c (which will cancel the incorrectly reported JK-TIER1 allowance) and also use JK-TIER2 (the correct Tier) with 1c.
- Example 2: Reported JK-TIER2 in error:
Follow the Create Allowance instructions above, but this time it will be JK-TIER2X.
In Wages > Next > Adjustments screen, use JK-TIER2X with 1c (which will cancel the incorrectly reported JK-TIER2 allowance) and also use JK-TIER1 (the correct Tier) with 1c.
This design does not support multiple corrections, so extreme caution should be taken to ensure the accuracy of originally reported JobKeeper extension data. This critical detail is used to determine the reimbursement amount to the employer.
Continue to: Configuration Of JobKeeper Payments In Agrimaster