Re: Jobkeeper Topup payments

Update regarding Top-up Payments to Staff for weekly and fortnightly payers under Jobkeeper 2.1 Stimulus package

Further to our JobKeeper 2.1 update last week, we remind you that the final payroll date under JobKeeper 1.0 concluded on 27th September 2020. We provide you with some recommendations regarding payments of Top Up wages to your staff under JobKeeper 2.1:

  • Eligibility for JobKeeper 2.1 is not guaranteed, and the 30% Decline in Turnover Test needs to be satisfied again.
  • You may have staff who are paid “Top-Up wages” under the previous JobKeeper program and upcoming payroll to process this week
  • If you are unsure whether your business will be eligible for JobKeeper 2.0, we recommend that you:
    • Cease paying top-ups for this pay run only;
    • Get tested for JobKeeper eligibility before your next pay run;and
    • Communicate the difference to your staff to keep them well informed
  • You have until 31 October 2020 to pay any required top-up’s once eligibility is confirmed
  • Please also note that the Top-up tiers have changed depending on your staff’s working hours during the first JobKeeper period

If you do pay top-ups and are not eligible for Jobkeeper, your business may end up out of pocket. You may choose to continue paying top-ups at the new rates at your own discretion. 

If you are eligible for JobKeeper 2.1; you will not need to recirculate nomination forms to your staff and the previous nominations held will be sufficient for record-keeping purposes.

We refer you back to our Client Guide for the updated Payment rates and Tiers, as well as Key dates.

In the meantime, we request you finalise your revenue reconciliations as soon as possible for the July August September 2020 period and advise when complete so we can test your eligibility.
If possible, reconciliation of your entire file will allow us to complete your September Qtr BAS sooner and give you clarity of your cash flow requirements to the ATO for the upcoming months.

Please contact your accountant if you wish to discuss further.

Our LMS Advisory Covid-19 Resource website is constantly being updated with the latest details provided to us by the Government and we will continue to focus on keeping you well informed.

Alexander Laureti is the Principal and Managing Director of LMS Advisory. He holds a Bachelor’s degree in Accounting and Law, and he is a Fellow of the CPA (Certified Practising Accountants) and a Chartered Tax Advisor. Alexander has over 17 years of experience as an accountant in Public Practice.
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