News from our Support Team
Over the next couple of months, we have a number of public holidays coming up.
So, how do you treat these in JobKeeper?
Public holidays (extract from Fair Work Ombudsman)
Public holiday pay needs to be included when calculating an employee’s usual pay if the employee:
Employees who are stood down without pay by their employer under the Fair Work Act are still entitled to be paid for public holidays that fall during the stand down period. This applies if the employee would normally have ordinary hours of work falling on the day of the public holiday.
Example from Fair Work Ombudsman
Example: Public holiday during stand down
Shashi is a full-time employee who normally works Monday to Friday at Sheepish Shoes in Victoria. The business is a qualifying employer receiving JobKeeper payments from the ATO for Shashi.
Sheepish Shoes gives Shashi a JobKeeper enabling stand down direction to work no hours from 1 June 2020 to 15 June 2020.
Monday, 8 June 2020 is a public holiday in Victoria (Queen’s Birthday). If Shashi worked as normal, he’d be entitled to 7.5 hours off work (his normal hours on Mondays) without loss of pay.
As Shashi is entitled to be away from work on the public holiday, the JobKeeper enabling stand down direction doesn’t apply to him on this day. This means Sheepish Shoes has to pay Shashi at his base pay rate for 7.5 hours (his normal Monday hours).
When calculating how much it needs to pay Shashi for the fortnight, Sheepish Shoes needs to include the amount Shashi is entitled to be paid for the public holiday. They must pay Shashi either the JobKeeper payment amount or the amount they would normally pay Shashi for the public holiday, whichever is higher.
Sheepish Shoes needs to pay Shashi an amount equal to the JobKeeper payment for this fortnight, because it’s higher than the amount Shashi would be paid for the public holiday.
Bookkeeping for Public Holidays and JobKeeper
The employee is entitled to the normal amount they would have been paid for the Public Holiday, even if they are subject to a standdown provision.
Then consider the JobKeeper fortnight total amount being paid. The employer must pay the greater of:
Contact us if you have any questions - phone: 07 4774 3266 or email: email@example.com
Less employers, less employees, lower rates and two different tiers.
And Fair Work JobKeeper discretions continue (for some).
If the business currently receiving JK experiences an ongoing decline in actual GST Turnover of 30% (50% large, 15% NFP).
A business is allowed to enter JK if they meet all eligibility requirements including decline in turnover.
Noting it continues to include Eligible Business Participants (EBPs) specifically including the self-employed.
“Ongoing actual decline in turnover”
An assessment of the decline in actual GST Turnover results for the quarter ended 30th September 2020 will mean an employer is eligible for JK for October to December, and a decline in turnover for the quarter ended 31st December 2020 will mean eligibility for JK for January to March 2021.
“Actual GST Turnover” is the GST exclusive taxable value of supplies made during the period (GST & FRE but not Input Taxed). We do not yet have confirmation of cash vs accrual or whether it is the same method as you report JK now. Note: JK 2.0 does not require you to be GST registered and JK does not require you to lodge BAS or lodge BAS quarterly. Currently the sale of assets is included in the GST turnover calculation.
Alternative tests may be allowed by the ATO. Refer to the existing alternate tests.
Timing issue: Employers may have to pay staff immediately after 28th September before being able to assess the decline in actual turnover for the quarter ended 30th September.
Impact: Employers who did not decline 30% in their ACTUAL GST turnover for the September quarter will cease JK as from 28th September.
It is a QUARTERLY test of actual turnover this year compared to same quarter last year.
How Much JobKeeper?
Employees who work 20 hours or more per week. In the four weeks of pay periods before 1st March 2020 (the time period is still in discussion).
Employees working for 20 hours or more per week on average and EBPs actively engaged in the business for 20 hours or more per week on average during February:
Employees who work less than 20 hours per week in the 4 weeks before 1st March 2020:
Employers will nominate which payment rate they are claiming for each employee or EBP.
There will be “alternate tests” to assess hours where hours worked in February 2020 were not “usual”.
Actual GST Turnover
Fair Work JobKeeper Directions
The proposed law is before Parliament as of 31st August 2020 - it is not final yet!
Then the rules will need to be issued by the Treasurer, and the Fair Work Ombudsman (FWO) will need to issue their guidance.
The proposal is: To extend the Fair Work JobKeeper Directions until 28th March 2021
Legacy employers have modified provisions, including: