JobKeeper Payments - Correct Payroll Setup

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Re: JobKeeper Payments - Correct Payroll Setup

We will be setting up the following Payroll Categories.

JobkeeperWSUP (with Super)

JobkeeperNSUP (No Super)

 

We will be topping up the JobKeeper Subsidy where needed to ensure employees keep their normal wages (for as long as we can).

We will also keep paying our super obligations of the value that has always been their “Normal wages”, we are not paying super on any additional values being paid to the employee due to the job keeper subsidy.

We are working with casual staff to determine an agreed average hours for the “normal hours”.

 

Employee 1.  Normally earns $2000 per fortnight. Their pay will be entered in as follows:-

JobkeeperWSUP (with Super)    $1500

Normal Wages                             $500

Total Paid to employee               $2000

Super 9.5% x $2000                     $190

 

Employee 2.  Normally earns $800 per fortnight. Their pay will be entered in as follows:-

JobkeeperWSUP (with Super)      $800

JobkeeperNSUP (No Super)         $700

Total Paid to employee               $1500

Super 9.5% x $800                        $76

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Re: JobKeeper Payments - Correct Payroll Setup

Hi Venita

 

That sounds good.  Just need to take into account that no entitlements accrue on the top-up payments (NSUP $700 in the example below), or on any payments to casuals.

 

 

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Re: JobKeeper Payments - Correct Payroll Setup

We run a weekly payroll and I am doing mine today - going to run it as per usual with no Jobkeeper payorll category as I havent received any instructions yet?

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Re: JobKeeper Payments - Correct Payroll Setup

Good morning @Shilolilo ,

 

That's what we have also done. We will wait on details from ATO, our accountant and MYOB re the set up and then sort it out. 

 

Katrina

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Re: JobKeeper Payments - Correct Payroll Setup

Im having second thoughts and running over all the info, maybe I should set up Jobkeeper payroll categories now...

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Re: JobKeeper Payments - Correct Payroll Setup

So we have guys on houlry rates plus 25% Casual loading plus allowances applicable to the construction industry.

 

When you throw in a new Payroll Category of $750 per week, should you manually reduce their hourly rate totals by a proportionate amount? Also reducing the casual rate loading? Should we pro rata that across each payroll category too?

 

Not sure what to do with our payroll today...

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Re: JobKeeper Payments - Correct Payroll Setup

Hi @Venita , @TopTaxOnline @KatrinaF @Shilolilo @M_Moar , and others

 

There seems to be a lot of confusion regarding this and some calculations being done and quoted here seem way out of whack.

 

The Jobkeeper payment is about giving an employee a minimum of $1,500 per fortnight before tax.  Pretty much exactly what they would receive nett if they were to receive jobseeker in total (or a top up) from Centrelink.

 

Therefore the government is moving some of the work of centrelink to the employers, (who mind you have to pay it out first before they are reimbursed).  Supposedly this keeps the employer in the 'good books' with the employee when the business comes back and their employees will retun immediately to the old employer.

 

If the employer qualifies for Jobkeeper (with income downturn and eligible employees) it will be an assistance for some.  Especially if the employees have done work.

 

For example my vegetable grower has had a downturn and we have two long term casuals.  One earns over $1,000 a week so we pay him as normal, pay super on all hours worked and record it all as normal wages.  We will get a subsidy of his wage of $1,500 per forntnight.  So in effect we are getting most of his hours worked for no cost, except the super.

 

The other casual on occassion may work a short week every now and again.  So in that fortnight he may only earn $1,200, we will then need to make this up to $1,500.  Therefore his wage will be $1,200 wages and $300 Jobkeeper subsidy.  With super only payable on the $1,200.  We have got all his hours worked for nothing, except super.

 

For any other employee who does not do any work, but we may wish to claim for, then they are paid $1,500 per fortnight before tax, with no super calculated, and that is ALL.  It is all recorded under Jobkeeper subsidy and all reimbursed by the Government.

 

For any long term casuals who are not doing any work at all, I will not even be claiming it.  It is too much work on our part and they can just claim it through the normal channels.  Once things are back up and running I am sure they will come back to work for us, instead of hunting around for another employer.

 

My main concern in all of this is workers comp and the premiums.  The actual wages paid declaration will need to include Jobkeeper Subsidy wages in the list of payments not to include (as is workers comp wages and golden handshakes etc), as I do not want my premium to include this extra wage I had to pay out.

 

I am also very concerned as to what happens if someone has received the minimum $1,500 per fortnight for at least 7 fortnights.  The business opens again, worker comes back and injures themself.  The average wage over the last 13 weeks will be $750 per week.  If they had of been a casual or part timer, they may have only received say $300 or $500 a week before the COVID shut down.  How is the average wage and amount to pay on workers comp to be calculated?

Julie Carter AIPA, BBus(Acctg),
MYOB Professional Partner, Registered BAS Service Provider
Associate Member of Institute of Public Accountants
Member Association of Accounting Technicians
ph: 0417 927 654 email: accuratebooks7@gmail.com
JAC' of All Trades Bookkeeping (Servicing from Leederville to Pinjarra, Fremantle to Armadale WA)


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Re: JobKeeper Payments - Correct Payroll Setup

Hi @Shilolilo , you must be tearing your hair out!  I'm stressed enough but don't have the added complication of the wage structure you have.

 

With my limited understanding (and it is limited), employers must still meet all entitlement obligations which would include the allowance and casual loading you have mentioned.  If it were me, I would not make any changes to those.  If your staff are still working, I would continue to pay as per their agreements.  If they earn less than $750 a week, then you can back pay once the legislation is passed today and receive instructions from the ATO (hopefully sooner rather than later). 

 

Again, this is only my personal opinion, does your firm have an accountant you can call?

 

Good luck

Katrina

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Re: JobKeeper Payments - Correct Payroll Setup

Hi Julia

 

I think your long term casuals doing no work would be the easiest to process in all this.  To say it is too much work on your part is a cop out.

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Re: JobKeeper Payments - Correct Payroll Setup

Hi, I agree with Julie about the payments but would like to clarify re leave entitlements.

I rand the Fair Work Ombudsman who says: leave accrues at normal ordinary hours for employees stood down (ie. annual leave and personal leave. Any employees who still work but whose hours have been reduced (by a Flexible Working Arrangement, not an award veriation) will only accrue on the reduced hours worked. They couldn't advise about LSL because it is state based. In Victoria: service is not broken but LSL does not accrue on the Job Keeper portion.

Anyone else have info?

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