This article contains information regarding the Australian Government JobMaker Hiring Credit Scheme and how to apply it in Wagemaster. This article also contains a query for Wagemaster that will show which employees have been hired because of the JobMaker Hiring Credit scheme and also a query that will provide indication on JobMaker eligibility.
The JobMaker Hiring Credit Scheme was announced in the 2020-2021 federal Budget, as part of the Australian Government's COVID-19 Economic Recovery Plan. It is an incentive to employers to hire additional, young employees who were previously receiving certain types of income support. The scheme runs from 7 October 2020 until 6 October 2022 and is administered by the ATO. For reporting and claims purposes, the scheme is divided into JobMaker quarterly periods.
During this time, eligible employers can claim JobMaker credits for each eligible, additional employee hired between 7 October 2020 and 6 October 2021. The payment rates for JobMaker credits are:
• up to $200 per week for each eligible employee aged 16 to 29 when hired
• up to $100 per week for each eligible employee aged 30 to 35 when hired.
JobMaker credits are paid quarterly in arrears. Employers submit their claims online using either ATO online services, via myGov, or the Business Portal. Claims for each JobMaker quarter must be submitted within a claim period that follows the JobMaker quarter. The total amount of credits paid per quarter may be capped.
Both employers and employees must meet eligibility requirements for JobMaker. Eligible employers must register with the ATO, prior to submitting their first JobMaker claim. They must also notify the ATO of eligible employees before they start claiming JobMaker credits for them, then declare to the ATO that those employees remain eligible, before submitting a claim for a specific JobMaker quarterly period.
NOTE: Employers also need to prove that they are creating new employment positions and not just replacing employees. More information is available on the ATO website.
The ATO is notified of new JobMaker employees, updates to employee information and eligible employees through STP Reporting.
JobMaker claims for the first quarterly period (6 October 2020 to 6 January 2021) can be submitted between 1 February 2021 - 30 April 2021.
To assist with the administration of this, Sage has developed a User Defined Query for JobMaker Hiring Credit which is attached below in this article.
Use Query Parameters to enter the JobMaker period (quarter) dates
The query will provide information on the nominated start and end dates on employees age at their date of employment if it falls within the nominated reporting period, weeks paid within the quarter and minimum required hours worked (for JobMaker eligibility) and report the hours paid in the quarter and then eligibility for JobMaker. The query will provide an indication on JobMaker eligibility.
The minimum hour's requirement for JobMaker is based on the following:
- To be an eligible additional employee for the JobMaker Hiring Credit payment, an employee must complete a minimum average of 20 hours of work per week across each JobMaker period from the time they are employed. This can include either:
- hours the employee is paid for work done, or
- hours the employee works.
Hours of paid work include paid overtime, paid leave and paid absences on public holidays. It does not include any unpaid leave.
This may be more appropriate if your employees are paid on an hourly or similar basis.
The number of hours actually worked include any hours worked, including unpaid overtime, paid leave and paid absences on public holidays.
This may be more appropriate if your employees are not paid at a particular rate (such as salaried employees.)
After running the query, allowances can be set up and allocated to employees and processed via STP for JobMaker Hiring Credit.
JobMaker quarter dates and Allowance Descriptions:
|JobMaker Quarters||Allowance Description||STP Reporting due date||Claim Between|
|1.07/10/2020 - 06/01-2021||JMHC-P0127||April 2021||01/02/2021 - 30/04/2021|
|2.07/01/2021 - 06/04/2021||JMHC-P0228||July 2021||01/05/2021 - 31/07/2021|
|3. 07/04/2021 - 06/07/2021||JMHC-P0328||October 2021||01/08/2021 - 31/10/2021|
|4. 07/07/2021 - 06/10/2021||JMHC-P0428||January 2022||01/11/2021 - 31/01/2022|
|5. 07/10/2021 - 06/01/2022||JMHC-P0527||April 2022||01/02/2022 - 30/04/2022|
|6. 07/01/2022 - 06/04/2022||JMHC-P0628||July 2022||01/05/2022 - 31/07/2022|
|7. 07/04/2022 - 06/07/2022||JMHC-P0728||October 2022||01/08/2022 - 31/10/2022|
|8. 07/07/2022 - 06/10/2022||JMHC-P0828||January 2023||01/11/2022 - 31/01/2023|
Apart from the above-mentioned Allowance Descriptions, you may need to set up the following Allowances.
JMHC-NOM - When you have hired a new, eligible employee and are nominating them for JobMaker.
JMHC-NOMX - To report that an employee was incorrectly nominated for JobMaker.
JMHC-RENOM - To report a rehired employee who meets the JobMaker eligibility criteria.
JMHC-RENOMX - To report that an employee was incorrectly reported as a rehired employee meeting the eligibility criteria.
NOTE: All JMHC-xxxx Allowances have to reported with 1c.
Setting up JobMaker Allowances:
An Allowance Code with an ATO Type of Other, assigned a specific Allowance Description is the means of notifying the ATO about employees' JobMaker status.
The ATO has defined a list of specific Allowance Descriptions that, when reported for an employee in an STP pay event, update the nominated employee's eligibility status. Employee information provided through the pay event is used to pre-fill the online JobMaker claim form.
CAUTION: Extremely Important: The Naming convention of Allowances is a mandatory requirement by the ATO. Failure to comply with EXACT descriptions will delay or prevent payment of JobMaker Credits.
You can view the eligibility status of your nominated employees online. Refer to the following ATO article for more information:
- Navigate to Setup > Allowances > ADD > Next when you are on the Welcome to the Allowance Wizard screen.
- The Allowance Type will be Standard Allowance > Next.
- Description = (Type the description exactly) i.e.., JMHC-01. Type = Addition. Frequency = Each Pay. Amount = enter 1 cent. Ensure that the Taxed box is 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; also tick the Report in STP box and ATO Type OTHER.
- Next and Next again to get to the FINISH button.
You have employed an additional person; JMHC-NOM with 1c must be reported in STP for this employee.
To claim the JobMaker Hiring Credit for e.g., the first quarter, JMHC-P01 with 1c must be reported in STP for this employee.
CAUTION: The employee must be an eligible employee.
JMHC-Pxx with 1c must be reported in STP for this employee for each quarter you want to claim. When the employee is no longer eligible, no action is required. You will only receive credits for the quarters you report in STP.
NOTE: There is no START and/or FINISH indicator.
In the latest update, new checkboxes have been added to the New Employee Wizard and Employee > Employment screens for the JobMaker Hiring Credit Scheme. These checkboxes can be ticked to identify employees hired because of the JobMaker Hiring Credit scheme. Employees with the JobMaker checkbox ticked are included in the results of the new, User Defined Query attached below. Employees with the JobMaker checkbox ticked (in Employee Details, Employment, Employment) are included in the results of this query. There is also a query that will provide an indication of JobMaker eligibility. It provides information on the nominated start and end dates, on employees age at their date of employment if it falls within the nominated reporting period, weeks paid within the quarter and minimum required hours worked (for JobMaker eligibility) and report the hours paid in the quarter and then eligibility for JobMaker.
File name: JobMaker Hiring Credit.zip (JobMaker eligibility)
File name: JobMaker Hiring Credit 2.0.zip (JobMaker Hiring Credit)
To access and run these queries you will need to save the zip file (attached at the bottom of this article) on your desktop. Copy and Unzip the queries into the following default location* on your PC or applicable server: C:\Users\Public\Documents\Wage Easy Payroll\Queries.
*Please check within Wagemaster > File > Company Details > Configuration > File Locations > Queries to confirm the file path for your file.