Payroll through Xero or MYOB
This is a reminder if you have already enrolled (or are planning to enrol) for the JobKeeper program from the start date of 30 March 2020.
An employer, registered with JobKeeper, needs to be aware that if April wages were paid before enrolling for JobKeeper, you may need to submit an updated JobKeeper file to qualify for JobKeeper funding. Accounting software will handle this differently so please check with your vendor.
Payment & Enrolment Reminder
This is a reminder if you have already enrolled (or are planning to enrol) for the JobKeeper program from the start date of 30 March 2020.
There are some critical actions and dates that you need to be aware of to ensure your eligibility:
JobKeeper – Extension of time to enrol and other important updates
In the last week there has been a number of announcements and changes that have come through from both the Federal and State Government in relation to various stimulus packages. These include clarifications to the JobKeeper payment, further useful ATO information and some South Australian Land Tax relief and grant updates.
The Alternative Tests
Under the JobKeeper rules, special discretionary powers were given to the Commissioner of Taxation to determine alternative tests for classes of taxpayers where the basic test couldn’t be used because there was no appropriate relevant comparison period.
These alternative tests have now been determined. The alternative tests are only relevant if the basic test cannot be met.
As a result of the stimulus measures announced over the last month or so, many businesses will start receiving payments from the Federal or State Government. It is important that these payments are accounted for correctly.
Cash flow boost
The COVID-19 cash flow boost for businesses are tax free and not subject to GST. These should be recognised separately in your accounting software.
We suggest creating an ‘Other income’ account narrated ‘Cash-flow boost’. This account should be set up as ‘BAS Excluded’ or ‘Non-reportable’. This will ensure that they are not reported as income.
