Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

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Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

Information on ATO website for employers references existing pay cycle and I understood it to mean the if you made the payment for the week from 30 March to 5 April on 9 April that it would be the first payment for Jobkeeper FNO1 (even if it was paid late but by end of April). I have copied below.

https://www.ato.gov.au/general/jobkeeper-payment/employers/paying-your-eligible-employees/

How to pay

You need to re-start or continue to pay your eligible employees at least $1,500 a fortnight in line with your existing pay cycle through your existing payroll solution.

When to pay

You should pay your employees for each JobKeeper fortnight you plan to claim for. The first fortnight is from 30 March – 12 April and each JobKeeper fortnight follows after that.

For the first two fortnights (30 March – 12 April, 13 April – 26 April), we will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by the end of April. This means that you can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April.

 

The ATO instructions to Digital Service Providers indicates a pay date on 2 April in arrears for the pay week ended 29 March would be included as the first week of Jobkeeper FN01 and the pay on 9 April for week from 30 March to 5 April would be second pay in Jobkeeper FN01.

 

Payroll cycles

Regardless of the frequency of regular pay cycles or out of cycle pay periods, or the pay period start and end dates, the $1,500 per fortnight applies to the paydays (payment date) within the defined fortnights and from which fixed fortnight the payment applies. Special rules apply for payments within the month of April and for employees receiving monthly pay. Refer to the examples on Page 2.

In the examples:

Weekly pays - $1,500 across the paydays within each JobKeeper fortnight period, including any out of cycle payments. Example: if weekly payday is on Wednesdays, then there are 2 paydays (1/4 and 8/4) within Fortnight 01, so total pay per eligible employee must be at least $1,500 for those 2 pays. It may be evenly split ($750/pay) or the second pay must make up at least the total $1,500 ($400 then $1,100)

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Re: Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

Hi @Murph 

 

April transition

 

Any combination of payments made between 1-30 April (only consideration is - if you are doing a back payment in the last week of April try not to combine it with a regular payroll payment that should be considered for May that is JobKeeper Fortnight 03 by the ATO - best advice do the back pay if in that week as a separate payment).

 

ALL your eligible employees should have $0.01 added to their JOBKEEPER-START-FN01 allowance in 1 payrun in April as this is the way that the ATO knows to start their Jobkeeper payments from the first fortnight.

 

Further info

If you have already paid your employees their regular pays for some or all of April without the JOBKEEPER START-FN01 code

You are able to nominate your start date for Jobkeeper by adding the JOBKEEPER-START-FN01 code into the next regular pay provided it is done before the 30 April to receive JobKeeper subsidy payment after 4 May) for each employee who has earned less than $3,000 gross in the two fortnights, you will need to add a top-up amount into the JOBKEEPER TOP-UP allowance to bring them up to $3,000.

Any employees who have already earned the $3,000 limit do not get paid any top-up and their normal salary etc are allocated as they normally would be for regular salary and wages payments - there is no top-up allowance paid to notify the government that they have been paid the actual $1500 required.

Hope that helps



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Re: Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

Thanks Leanne,

 

So, as the 2 April pay will be included, a number of employees have been paid too much top up since their gross on April 2 was over $750 for the week.

 

The way you've worded your further info, implies that the transitional measures allow you to combine the first two fortnightly minumums so that payments at any time from 1 April to 30 April totalling gross of $3,000 or more will meet the requirement. Is that what you meant? Are you able to reference ATO source on this? I would have thought that you still need to have minimum of $1,500 in each JK fortnight. if this is the case, an overpayment in fortnight 1 would be bad luck and still have to pay $1,500 in fortnight 2.

Thanks in advance.

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Re: Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

@Murph

 

Here is the reference as requested

 

For the first two fortnights (30 March – 12 April, 13 April – 26 April), we will accept the minimum $1,500 payment for each fortnight has been paid by you even if it has been paid late, provided it is paid by you by the end of April. This means that you can make two fortnightly payments of at least $1,500 per fortnight before the end of April, or a combined payment of at least $3,000 before the end of April.

 

https://www.ato.gov.au/general/jobkeeper-payment/employers/paying-your-eligible-employees/



Leanne Berry
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Re: Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

Just wanted to double check on the wording - In setting up the JobKeeper TopUp category, we are obviously only selecting the employees that require the top up (only 2 in our case) but in setting up the Jobkeeper Start-FNxx etc does this apply to ALL employees (including the top up) or just those other than the two (2) top up employees?

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Re: Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

Hi @Nada1 

 

Yes thats correct - the JOBKEEPER-START-FN01 applies to all employees - this is a once only action to notify the ATO of start fortnight for JobKeeper - make sure you follow the directions for the START exactly



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Re: Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

Thanks for the clarification.  Smiley Happy

One other thing.  I have to back pay the topup wage for these 2 employees for the past 3 pays.

I think this is correct:

I only put the .01 into the JOBKEEPER-START-FN01 on the first backpay for each of these employees then I remove that from their Wage Category?

 

Thanks in advance

Nada

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Re: Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

Thanks Leanne. This clarifies the situation where there has been an underpayment. Sorry to be so pedantic and particular but I have a messy client situation where they do their own payroll and there has been overpayment in fortnight 1. The reference covers "even if it has been paid late" but leaves it a little open to interpretation about if the JobKeeper payment was paid early. Nice boss didn't want to leave the staff without any pay whilst stood down.

 

Some employees were overpaid for fortnight 1 as they didn't anticipate that pay on 2 April was part of fortnight 1, and compounded the issue by not treating the JobKeeper as a top up and gave $750 gross on 9 April. This was in some cases in addition to annual leave (which was later reversed).

 

So lets say they paid an employee

2 April $1,000 normal gross

9 April $750 Jobkeeper (should have been $500)

16 April $750 Jobkeeper

So lets assume they want to stick to weekly cycle and pay on

23 April, although they can pay as late as 30 April.

Do they pay $500, being $3,000 - $2,000 combined total above or

Do they pay $750, being $1,500 for fortnight 2 less $750 paid fortnight 2?

 

If they then pay $750 each on 30 April and 6 May, they should be good for fortnight 3.

 

Very grateful for your pointers. 

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Re: Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

Hi @Nada1 

 

You will need to include the $0.01 in the FN01 allowance once for every eligible employee.  Your eligible employees will be more than just the 2 employees who you are paying the topup to.  It is usually all your employees.

 

Have you received their signed Authority to Participate yet?

 

Regards,

 

AlanT

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Re: Jobkeeper weekly payroll in arrears paid 2 April- which is the first pay included in Jobkeeper FN01?

Hi @Murph 

 

For April so long as the total of payments is $3000 for each eligible employee receiving JobKeeper and requiring top up then make any necessary adjustments either in the next pay or back pay before 26 April



Leanne Berry
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