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JobKeeper Payments - Correct Payroll Setup

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JobKeeper Payments - Correct Payroll Setup

Hi


We are a small NFP childcare running on a tight budget.  

 

Please would someone advise how best to setup payroll categories for JobKeeper payments, especially in connection with super - unfortunately we cannot afford to pay super on the difference between the workers previous (lower) wage and the higher (topped up to $750 weekly) payment.

 

Thanks.

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Re: JobKeeper Payments - Correct Payroll Setup

I'm wondering about that too, we have zero projects and zero revenue between now and September / October 2020, our Power Station Maintenance works is all delayed.

So do we include the Super as part of the $750 so we aren't out of pocket??

 

Something like this for a weekly payment:

 

JobSeeker Gross: $685.00

Super: $65.00

 

Would mean PAYG of $77.00 and in the hand payment to worker of only $608.00

 

Can anyone confirm??

 

Thanks and stay well Smiley Happy

 

 

 

 

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Re: JobKeeper Payments - Correct Payroll Setup

Hi Shilolilo


My understanding is the employer has to fund super.  However, if an employee usually received a lower gross wages, say $500 per week, then the employer must pay super on $500, but can opt  (but is not obliged) to pay super on the additional $250 JobKeeper payment passed to the employee.  The employee must receive a minimum $750 gross weekly. 

 

I appreciate that a newspaper is not the best source of confirmation, but this agrees with what I've read elsewhere.

https://www.canberratimes.com.au/story/6704106/how-does-the-130b-jobkeeper-program-work/

 

 

 

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Re: JobKeeper Payments - Correct Payroll Setup

OK thanks for confirming- that link doesn't let you read the article though!

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Re: JobKeeper Payments - Correct Payroll Setup

Hi @Shilolilo and @M_Moar 

 

If it helps here is a link to the ATO Fact sheet - as at 31 March 

https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet_supporting_businesses_6.pdf

 

Note this info may keep changing until they atcually enable the Legislation so keep checking back for further clarification on things.

 

See also the info on the Treasury website - https://treasury.gov.au/coronavirus/jobkeeper

 

Jennifer Kelly CA
BI4Cloud- powered by Interactive Reporting
02 8011 1511
www.BI4Cloud.com
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Re: JobKeeper Payments - Correct Payroll Setup

Hi, I'm confused about the super also. I thought maybe we had to pay that on the $750 per week at our cost and no reimbursement. I know if you choose to pay over the $750 that it is your choice whether or not to pay super on that. I think there is so much confusion, hopefully the ATO will develop an extensive FAQ list.

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Re: JobKeeper Payments - Correct Payroll Setup

Hi @BRIGITTE , confusion definitely reigns supreme at the moment!  This all has to be legislated yet so I think they are working out the details as they go. 

 

My understanding (and, to be fair, it's limited) is that if your employee usually earns less than $750 gross per week then the employer can choose to pay the higher amount of super.

 

For example, if the staff member usually earns $500 a week then you must pay super on that amount as per existing arrangements.  However on Job Keeper, they will earn $750 a week, which under normal circumstances would result in more super being paid.  The employer can opt to pay on the higher amount or not.

 

If the employee usually earns more than $750, then we have to top up the difference to their regular pay, so super will remain the same.

 

My understanding so far, is that there is no reimbursement for super.  

 

Lots of waiting and seeing for us all at the moment :-)

 

Katrina

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Re: JobKeeper Payments - Correct Payroll Setup

From waht I read you only pay super when the person is actually working for the $750. Two examples you have Employee A Current salary $1,000 per week, that employee continues to work on full duties hence getting the full normal wage. Because of downturn the JobKeeper gives $750 of the wage the employer pays $250 super is paid on the whole $1000. 

Employee B was on $850 per week but because of shutdown there is limited work. There is only enough work to get $400 worth of paid hours. You get the $750 from JobKeeper that you pay the employee but only pay super on the worked hours being $400, think that is the way it works

 

 

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Re: JobKeeper Payments - Correct Payroll Setup

Thanks @Michaelwilson 

 

This is interesting.  This would mean that if the business has to close its doors temporarily and stand down the staff, they would receive the JobKeeper payment of $750 but no super would be payable cause zero hours worked?  I would like to follow this up, do you remember where you saw it so I can check it out?

 

Thanks in advance,

Katrina

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Re: JobKeeper Payments - Correct Payroll Setup

I read this morning  that businesses that are completely closed eg some hospitality will not use this system. Their stood down employees should  be on Jobseeker allowance.

ABC website: 'However, if there's no chance of you being re-hired -if your employer can't reopen their business under the lockdown restrictions-then you'll need to apply for the Jobseeker payment'. This Jobkeeper thing is for businesses that can keep staff working, although hours may be limited. It's going to be interesting to say the least. And I'm assuming it will still cost businesses to keep their staff on, even if they just pay the $750pw, because they will have super to pay on this and the staff will be accruing leave.

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