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Business Tips – JobKeeper Payment - SIMPLIFIED – How to enter Payroll when pay is under $750 week ($1500 fortnight)

images/Business-Tips.jpgJobKeeper (JK) – Enter Payroll when less than JK

The ATO JobKeeper website was updated on 20 April with pages of how the scheme works.

The 4 main accounting software suppliers in Australia have provided JK instructions and here is a quick overview (detailed links at the end) –

MYOB – instructs to create a new Payroll Category as an Allowance

Xero – have already created a new Payroll Category as an Allowance - supplied

Reckon – are instructing to create a new Payroll Category as an Allowance

Quickbooks Online – are instructing to create a new Payroll Category as an Allowance

Simple example when the pay is less than $750 ($1500 fortnight)

Where an employee earns less than $1,500 fortnight, or $750 week,

  • $750 a week has tax $96 so the net pay is $654
  • $3000 less ($96x4) $384 PAYG = net $2616 net due for 2 fortnights (nearly a month)

To catch up April and ensure at least $3000 Gross paid, or

To catch up to $750 for weekly or $1500 fortnightly on-going, work out the difference required to Top Up.

The first JobKeeper period Fortnight is Mon 30/3 - Sun 12/4 ($1500) and to check if the minimum is paid, it’s easier to take the month of April 1-26 April (min $3000 Gross) – Note - deadline is Friday 8 May to catch up April payments.

April catch up for a month ($3000 min for 2 x $1500 fortnights) for staff earning less than $750 week

  1. Report the Payroll month of April, to get the Total $ PAID Gross in April – eg $2650
  2. From $3000 subtract the Total $ Paid  = $ Top Up  - eg $3000 - $2650 - $350
  3. Enter a Top-up pay allowing for any tax already paid, or the full tax on $3000 which is $384 if no tax in April – that is a Top up pay of Gross $350 (check tax over the month will be $384) less any tax net due.

Stood down employees

The full $750 is allocated to the JobKeeper Pay category less tax $96, or Gross $3000 less tax $384, to catch up April

Ongoing pays

  1. Take the ACTUAL hours worked THIS week eg 12 hr x $25 = $300
  2. The Top up to pay the min $750 less actual hours worked = $750 - $300 = $450
  3. Type $450 against the JobKeeper Top Up Category
  4. Ensure PAYG tax is $96
  5. Net is $654 to pay

Earning over $750 week

There is NOTHING to change – continue regular payroll as usual. The business will get a subsidy (reimbursement) for eligible employees, up to $750 a week.

The ATO is working on fortnightly periods form Mon 30 March of $1500, but payroll can continue as you regularly have it set up, no need to re-align to fortnights, just pay the minimum equivalent for the fortnight periods.

 

The software steps - see the following links to software solutions for JobKeeper

images/MYOB logo.png

Processing JobKeeper in MYOB AccountRight

Processing JobKeeper in MYOB Essentials

Processing JobKeeper in MYOB New Essentials

 

COVID Resource Centre- JobKeeper page

COVID Resource Centre- General page

 

Quick Tips for setting up MYOB Payroll

 

 images/Reckon Logo.jpg

  

Main Reckon Jobkeeper landing page

Jobkeeper reporting payments

Reckon One>

Reckon Accounts (includes Hosted)>

Reckon Payroll Premier 2019/20 JobKeeper Guide>

Reckon STP Mobile JobKeeper Guide>

(link to the page if your help doc needs reference to the reporting period)

 

images/Xero X Logo.JPG

https://central.xero.com/s/article/Enrol-employees-for-JobKeeper-payments

A turnover calculation tool is in beta and will be publicly released shortly

 

images/QB Int logo.JPG

JobKeeper QBO setup guide

 

Need help? Not sure? Call for FREE 30min advice / strategy session today!

Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 0407 361 596 Australia

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Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
Accounting Software Australia, MYOB, Quickbooks, accounts software, bookkeeping software
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