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How to process JobKeeper payments in your Payroll Software

How to process JobKeeper payments in your Payroll Software

Important Update for Advanced People (Payroll) and Exo Payroll users relating to JobKeeper payments.

UPDATE – 17/04/2020

Final update on this topic – the procedure guides are now available for both MYOB Exo and MYOB Advanced.

See below posts for details and you can find the downloads here:

MYOB Advanced – JobKeeper Payment

MYOB Exo Employer Services – JobKeeper Payment

 

UPDATE – 15/04/2020

Just an update regarding the JobKeeper Payment subsidy. The ATO have a final session planned Wed 15th April, with the software vendor /  Digital Service Provider (DSP) community.

We are aiming to have guidance documentation ready for clients within the next 24 / 48 hours, showing what is required to register employees to JobKeeper program using the MYOB Payroll products and then transacting any top-up payments

What to do right now?

The main guidance for employers right now is to register their interest in participating in the JobKeeper payment from 30 March 2020 at ato.gov.au/jobkeeper.  Employers must understand and meet the various criteria to be eligible for the subsidy. Check out the various factsheets here at https://treasury.gov.au/coronavirus/jobkeeper

What will be next?

A process has been presented by the ATO and is being discussed with Digital Service Providers (DSPs) in terms of roll-out.  One thing to be aware is that employers will have the opportunity to register eligible employees right up to 26th April for any JobKeeper payments from the 30th March, so there is no need for concern.

How we see the process working at this moment in time

Employers are being urged to use the STP pay event to notify the ATO of eligible employees. Employers will be asked to generate a “ad-hoc” pay and use a new pay item, JOBKEEPER-START-FNxx, (where “xx” refers to the fortnightly period from which the payment first started) which will be used to register eligible employees to the JobKeeper, as well as to notify the ATO the fortnight in which the JobKeeper payments started to each employee. A new Allowance Pay item is to be used as the basis to “signify” registration to the ATO. The ATO have produced a numbering sequence of the fortnights, so this will be included within our documentation.

Once registered, employees are then paid there normal salary / wages.  For those employees who are paid $1,500 or more per fortnight (or equivalent), there is no further action required by the employer, as the ATO will now understand what periods the employee is being paid and as such, will provide the correct reimbursement up to the $1,500 per fortnight amount.

For eligible employees who are paid less than $1,500 per fortnight, they must be paid a “top-up” amount to bring their taxable gross to $1,500 per fortnight for paydays within the JobKeeper fortnightly periods. These “top-up” amounts must use a new Allowance pay-item, JOBKEEPERTOPUP.

IMPORTANT PLEASE NOTE: Deviations from the exact descriptions on these new Allowance code, including failure to use 2-char to indicate the period number, may significantly delay or prevent reimbursement.  These have not been confirmed, and as of the end of last week were still talking points within the ATO & DSP community. The above instructions are NOT FINAL and we will share the final instructions when available. Please do not setup the above items yet and do not attempt to process the pays until this is confirmed and ready. This page will be updated further once the information is provided in the next 24/48 hours.

This page will be updated once more information is available so please save this page and check back again soon. We will also post updated on our social channels so please make sure you follow our Facebook or Linked pages to stay up to date.

 

Original Post – 09/04/2020

Just a note that we are busy preparing guidance notes on how our clients will be able to register & process JobKeeper payments to their employees.

At the moment, MYOB is in consultation with the ATO working through “how” an employer will need to register their employees to JobKeeper, as well as making the necessary payments, all via the current STP mechanism available in both products.

As the bill has just passed Federal Parliament yesterday, once the bill(s) passes into law, the ATO will confirm the finer details to software vendors, which will allow MYOB to provide the necessary guidance. We will then be sending information directly to clients and online.

You can read more about JobKeeper payments here

This page will be updated once more information is available so please save this page and check back again soon. We will also post updated on our social channels so please make sure you follow our Facebook or Linked pages to stay up to date so you can navigate through the covid 19 situation.

 

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