Finding the right accounting information and making sense of your tax related entitlements can often be a difficult process. So at GF Galbraith, we’ve tried to make it a little bit easier for you! Please browse through the documents and website links below for helpful information concerning your tax, accounting & auditing, and self managed super fund needs. Or, if you still can’t find what you’re looking for contact us directly.
Latest JOBKEEPER Information
Just an update for steps to take to start preparing for JOB keeper 2 which starts from 28/9/20 up to 1/3/21.
Regards, Matthew Galbraith.
1/ TURNOVER TEST
Your turnover will be retested for both quarters so receiving Job keeper until March 2021 does depend on your turnover actually reducing by 30% in both quarters and you have to pass both to receive the payments.
So we will use actual figures not estimates.
You need to check if your Gross GST business turnover has decreased by 30% or more for the whole quarter for July to September 2020 vs 2019.
These figures will be what goes on the BAS for the quarter. Please send through the 2019 amount and what you have received for July to September 2020 so far.
This will include trade in of cars or car sales or equipment because they are included in the GST turnover.
E.G. If you have 1 good month in August but July and September are down then you can still pass as the test as this is based on the 3 months not one month’s turnover.
HOW TO CHECK YOUR TURNOVER
You can check your turnover using the Job keeper calculators provided in MYOB or Xero or if not available print the Business activity statement figures up to today which will show you the TURNOVER figures at G1 or you can print Profit and Loss and click the box that says last year so you can see the turnover for the 2 years.
Please note these figures are excluding GST so please tell us this when you send through your turnover test amounts.
Will there be an alternative test?
- The Commissioner of Taxation will have discretion to set out alternative tests where an employee’s or business participant’s hours were not usual during the February 2020 reference period.
- For example, this will include where the employee was on leave, volunteering during the bushfires or not employed for all or part of February 2020.
- The Treasury has confirmed that guidance will be provided by the ATO where the employee was paid in non-weekly or non-fortnightly pay periods and in other circumstances the general rules do not cover.
2/ CHECK STAFF HOURS
Please check which staff were employed in February 2020 or June 2020 if new employees and how many hours they did each week to determine what amount they receive from 28/9/2020 for Job keeper.
Please send this information through once you have worked this out.
This needs to be done and updated either through STP or via the Business portal or from our help updating the ATO Portal for you.
Please remember you need to pay your staff before you receive the Job keeper payment from the ATO so we need to work out how much each staff member is entitled to so you know how much to pay them.
ELIGIBLE BUSINESS PARTICIPANTS
We understand that Eligible business participants will also have to prove how many hours they worked in the business during either the month of February or June 2020.
You need to be actively engaged in the business to receive this payment going forward. How much depends on the number of hours you have worked for the 4 week period.
There will be more information coming out about how you calculate the number of hours you worked which we will pass on to you.
A declaration will be required to confirm how many hours you have worked in the business.
What Doesn’t Change?
To claim for fortnights in the JobKeeper Extension 1 or 2:
- You don’t need to re-enrol for the JobKeeper extension if you are already enrolled for JobKeeper for fortnights before 28 September.
- You don’t need to reassess employee eligibility or ask employees to agree to be nominated by you as their eligible employer if you are already claiming for them before 28 September.
- You don’t need to meet any further requirements if you are claiming for an eligible business participant, other than those that applied from the start of JobKeeper relating to:
- holding an ABN, and
- declaring assessable income and supplies.
PLEASE NOTE: The full eligibility has still not being released as yet so I will update you further once come to hand.
The Jobkeeper Payment Rate
From 28 September 2020 to 3 January 2021, the JobKeeper payment rates will be:
- $1,200 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average, and for eligible business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and
- $750 per fortnight for other eligible employees and business participants.
From 4 January 2021 to 28 March 2021, the JobKeeper rates will be:
- $1,000 per fortnight for all eligible employees who, in the four weeks of pay periods before 1 March 2020, were working in the business or not-for-profit for 20 hours or more a week on average and for business participants who were actively engaged in the business for 20 hours or more per week on average in the month of February 2020; and
- $650 per fortnight for other eligible employees and business participants
ATO Tax Tables – to calculate correct tax to withhold from wages for your state
ABR Search Names Database – search for ABNs and Trading Names
Worksafe – workers’ compensation services including applications and claims
Fringe Benefits Tax (FBT) – what items are by the FBT
Industry & Occupation Specific Tax Information – deductions for specific occupations