Exiting Jobkeeper for Monthly, Fortnightly, and Weekly Payrollsby Arpit U. Tax Accountant
In the wake of coronavirus, government assistance through Jobkeeper payment to Australians is additional support provided to the people. It is quite helpful to reduce the economic impact.
Jobkeeper payment implies that a worker or an employee in Australia will get a fortnightly payroll of $1,500 by the Employer (before tax). However, the Jobkeeper payment is open for eligible businesses only, and in light of the fact, some rules are particularly sanctioned to check business eligibility.
All these rules for the JobKeeper program have specifically been undertaken by keeping the current situation in mind. The rule is also known for ‘wage condition’ – a requirement.
Changing shifts in Jobkeeper
Through the commencement of the Jobkeeper program, the government plans to support people or businesses suffering a lot, as some trade restrictions have been imposed on them due to the coronavirus crisis.
But the interaction of JobKeeper was still a matter of confusion, as people were finding it difficult to understand. That's why the government came ahead on 8 June 2020 and announced some crucial details though Media release.
The announcement was made to clear the confusion on the exit of businesses from the Jobkeeper program. According to the government, from 20 July 2020, Jobkeeper payment will not be provided to the Employer engaged in the childcare sector.
The intent behind doing this is to support families with the resumption of the childcare subsidy, so they look after their child amid this hard time in a better way. However, further plans will be revealed by the government after 23 July, as the government is still preparing for substantial arrangements in the wages subsidy system.
So it'll be interesting to see how the government introduces exit for employers from Jobkeeper and how they'll interact with weekly, fortnightly, or monthly payroll.
The expectation for Extension and Removal of Scheme
The changes are still under consideration; the government is planning which sector no longer requires JobKeeper assistance or which sector needs an extension. The extension of the scheme is expected for airlines, and removal is expected in those areas that comparatively have a high recovery rate.
The tourism and hospitality sector are some of the most affected areas, which have become the easiest victim of this hard-hitting situation. Businesses are struggling, no wonder, because people follow social distancing that holds them back to go outside and purchase items.
Similarly, international flight restrictions are some of the strong reasons why the government is planning a Jobkeeper extension in these sectors.
It's not that confusing as most people wonder, indeed you can ask for the assistance of accountants Melbourne as they can guide you exceptionally well on how to work out on various things. According to the Federal government, Jobkeeper payment will be exempted from Payroll tax so that Employers can feel stress-free for sure.
But what’s the process of Payroll Jobkeeper? What dates are Jobkeepers paid? Can employees choose Jobkeeper payroll? All these questions are usually to arrive in your mind. But don't worry, with the help of an accountant’s advice, you'll find the easiest way to come out of this puzzle.
Created on Jul 24th 2020 00:22. Viewed 317 times.