JobKeeper Payments - Correct Payroll Setup

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Re: JobKeeper Payments - Correct Payroll Setup

Hi Everyone

 

I just wanted to give you all another update. Our experts have created detailed help articles which will guide you through recording the JobKeeper payments in your software.

 

However, we do need to wait until the JobKeeper payment has been legislated before we release those articles. At this stage, changes are still being made to the payment and we do need to ensure that the information we provide is correct.

 

Once this payment has been legislated and our help articles are released I will update this post.

Cheers,
Tracey
Previously @bungy15

MYOB Community Support

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Re: JobKeeper Payments - Correct Payroll Setup

Great points, especially re workcover. I think this is a sound reason to establish a specific Jobkeeper payroll category. Hopefully this will be exempt when calculating workcover premiums somehow. I have a casual who usually would be working 6-18 hours pw but is not working at all now but being paid $750 pw. If I have to include this in my workcover calcs, this is clearly ridiculous.

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Re: JobKeeper Payments - Correct Payroll Setup

Looking forward to receiving the MYOB guide.!!! Thankyou

 

I think we all agree that the general advice is to do nothing until this has all been passed and we know exactly what and who we need to be paying.

 

After the points put forward regarding the Loadings, Allowances and Workers comp (and still needing to report that the full $1500 has been paid to the employee). I think this type of set up may work:-

 

Set up 2 new wages categories (these will need to be abbreviated for character restrictions)

JobkeeperSUBSIDY (no Super or entitlement)    

JobkeeperWageSUPPLEMENT (no Super or entitlements)

 

Wages can be entered as we have always normally done.

The “subsidy” category can show the full $1500 being paid to the employee.

The “Wages Supplement” category can show the amount we are keeping to cover their normal wages – ie the balance, if any, being paid to them as required by the Gvmt.

Super calculation will not be effected.

 

Employee 1.  Normally earns $2000 per fortnight (of which only $1900 is subject to super).

Their pay will be entered in as follows:-

 

Normal Wages (subject to super)                          $1400

Loadings (subject to super)                                      $500

Allowances (not subject to super)                            $100  total gross = $2000

+

JobkeeperSUBSIDY(no Super)                               $1500

JobkeeperWageSUPPLEMENT (no Super)           -$1500

Total Paid to employee                                     $2000

Super 9.5% x $1900                                   $180.50      

 

Employee 2.  Normally earns $900 per fortnight (of which only $800 is subject to super). Their pay will be entered in as follows:-

 

Normal Wages (subject to super)                            $600

Loadings (subject to super)                                      $200

Allowances (not subject to super)                            $100  total gross = $900

+

JobkeeperSUBSIDY(no Super)                                $1500

JobkeeperWageSUPLIMENT (no Super)                 -$900

Total Paid to employee                                       $1500

Super 9.5% x $800                                      $76.00         

 

With reference to the Workers Comp.  A report can be run on the Jobkeeper categories. The difference between the 2 categories will give the value that has been incurred due to the subsidy payout requirements and not from normal wage payments. 

This can then be deducted from the Gross wages value to be reported.

 

A further note with setting these up. 

I would also create an operating expense account (or COGS account) near to your wages account. 

Use this account for both of the new categories – the balance of this account will show any outlay that you have incurred due to the jobkeeper payments and this can then be clearly reconciled with the “other income” you receive from the payment…when it comes in !!!

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Re: JobKeeper Payments - Correct Payroll Setup

hi @M_Moar 

 

A cop out it is NOT!

 

If you have say 5 long term casuals who you get no work from because your business is in total shutdown, you as the employer will then have to pay $15,000 during April to these 5 before you get it back in May!

 

Where does the employer get this money from, seeing that their business is closed and they have no turnover.

 

Who is paying for the bookkeeper to do this extra work?  Not the Government if that bookkeeper is a contractor/BAS Agent like myself, and not the employee, but the small business owner who has already been struggling way before all this.

 

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 Julie

 

You didn't state any of that in your post; just that it would be too much work on your part.

 

"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."

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Re: JobKeeper Payments - Correct Payroll Setup

It's all a little stressful. I'm going for another cake break

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Re: JobKeeper Payments - Correct Payroll Setup

@Shilolilo 

 

LOL.... I will join you.

Is it too early to drink??

 

Kat

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Re: JobKeeper Payments - Correct Payroll Setup

So stressful for everyone at the moment. We will all get through this, great to be able to share ideas and stresses here. Everyone's circumstances are different but equally stressful for the most part. Best wishes and cheers to all x

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Re: JobKeeper Payments - Correct Payroll Setup

Smiley Very Happy

 

Nope!

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Re: JobKeeper Payments - Correct Payroll Setup

hi @M_Moar 

 

I did actually state at the beginning of my post

 

"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)."

 

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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