The government’s hasty answer to the financial strain of COVID-19 has puzzled many businesses regarding their responsibilities to their employees. Considering that COVID-19 has taken the nation by surprise, it’s fitting that the same can be said for the financial support the Australian government has formulated.
Here are few decoded facts about JobKeeper:
- JobKeeper is different to JobSeeker. JobSeeker is paid directly by Centrelink to individuals who are unemployed. JobSeeker has been known in the past as ‘government benefits’ for individuals.
- JobKeeper is paid to employers to subsidise employee wages, allowing many workers to remain in their jobs.
- JobKeeper currently subsidies each employeeup to $1,500 to employers per fortnight per employee before taxes, and an employer must then only pay the difference between the $1,500 and an employee’s usual wage.
- On 21 July the government announced proposed changes to JobKeeper including an extension through to 28 March 2021.
- JobKeeper payments are treated as a regular wage in terms of tax. When paid to the employee, income tax is still withheld, making the amount receivable less than $1,500.
- JobKeeper is not included in BAS as it is not considered sales income.
To find out more about JobKeeper, visit:
For help with making monthly business declarations, contact us.
Visit ATO website for more info.