The team at foundU is currently working on developments related to JobKeeper in the next couple of weeks.
Source Legal Q & A:
Sean, from Source Legal has kindly provided answers below to the queries asked in the webinar:
1. If someone ordinarily earns more than $750, and you are paying them the full amount, do we pay super on the $750 JobKeeper amount?
A: If an employee is being paid more than $1,500 per fortnight super contributions need to be made as usual. However, where the employee is having their wages topped up to $1,500 per fortnight by the JobKeeper payment, it is up to the employer whether to pay super on the topped up wages.
2. If staff are working now and earn $1500 per week how do you add the JobKeeper payment?
A: You don’t have to add the pay item to their wages. It is a subsidy paid to the employer which the employer can keep and continue paying the employee $1,500 per fortnight.
3. What if you don’t have the cash flow to pay the JobKeeper amount before the funds are made available in May?
A: Unfortunately, there have been no measures put in place to help employers in this situation. The government has been recommending that employers speak to their bank about a small business loan.
4. We have a pensioner who earns $610.00 p/f the $1500.00 would affect his pension how do we deal with this?
A: Sorry, I don’t have expertise on pensions so can’t answer this question. This would be one to ask Centrelink about.
5. Our weekly payroll cycle is from Sunday to Saturday. Therefore, can the first weekly pay start from Sun 29th March to Sat 4th April be included in the reimbursement?
A: The first JobKeeper period starts on 30 March 2020. So you should get six days of your cycle included.
6. Sean could you please clarify definition of casual for on-hire (Labour Hire) in terms of eligibility?
A: To be eligible, casual employees need to have been employed by the employer on a regular and systematic basis for at least 12 months. For labour hire companies, this means they need to have been employed by the labour hire company on a regular and systematic basis for 12 months. It’s ok if they have been performing assignments for different clients, because they still will have been employed by the labour hire company all of that time. But overall, the employment needs to be regular and systematic, so if there have been large breaks in the employment they may not qualify.
7. If our casual employees qualify and receive JobKeeper payments but when we return to full operations, our customer foot traffic is significantly decreased, what happens if we can only provide reduced working hours to our casuals?
A: It would be okay to reduce the hours that your casual employees work at that point.
8. If we are able to pay staff weekly, will the ATO reimburse weekly or on fortnightly basis? Do you know at this stage how frequently the ATO will be reimbursing employers - once a month, fortnightly, weekly?
A: The ATO will reimburse employers monthly in arrears.
9. Can these payments offset annual leave payments?
A: Yes they can.
10. Are bridging visas included in the eligibility?
A: Only employees who are Australian citizens, or a holder of a permanent visa, protected special category visa, a non-protected special category visa who has been residing continually in Australia for 10 years or more, or a New Zealand citizen on a special category visa (subclass 444) visa will qualify for the JobKeeper scheme. Unfortunately, temporary visa holders such as subclass 457, 482, student visas, and working holiday makers will not qualify for the JobKeeper scheme. (This answer is courtesy of Gilton Valeo immigration lawyers)
11. What if an employee asks to take annual leave? Is this amount taken as total earnings for the $1500?
A: Yes payments made to employees while they are taking annual leave are taken as earnings.
12. What about back paying JobKeeper?
A: Unfortunately this is not allowed – employers have to pay employees as usual and be reimbursed by the ATO monthly in arrears for the JobKeeper payments.