If you’re an Australian business, you may know that applications for JobKeeper open in just a few days. And Xero Payroll has got your back. Today we released enhancements that make processing the federal wage subsidy simple.
Read on for an overview, with one caveat: the features below assume you’ve opted in to Single Touch Payroll (STP). If you’re not on STP, getting started is simple. Don’t delay, as STP will likely be the simplest route to receiving the JobKeeper subsidy.
How do I tell which employees are eligible for JobKeeper?
Xero Payroll offers you a head start in identifying staff who may be eligible for the wage subsidy. It compares the government’s eligibility criteria and data in Xero Payroll to suggest a list of employees. You’ll be able to modify this list by updating your employee records.
By identifying who’s eligible, you’ll be helping the ATO prepare to issue payments. And you can choose when JobKeeper payments should start and end for each employee. Note the tax office plans to pay employers one month in arrears.
How do I report JobKeeper payments that I’ve made?
Xero Payroll helps you process JobKeeper payments you’ve made to workers, including those made before JobKeeper was passed by Parliament. The software creates a pay item so that you can accurately report these payments to the ATO. You just need to add the item to your employee’s payslip.
We also provide a way to process the JobKeeper payment and report it to the ATO. Most of this happens seamlessly in the background while you’re filing STP.
Recording JobKeeper payments via STP will do more than help you get paid faster. It will ensure your record keeping is clear and well-documented for peace of mind in the months and years to come.
But my circumstances are unusual!
We understand that not all employer-employee relationships neatly fit the eligibility criteria outlined by the government.
We’re providing support pages for scenarios where the eligibility of an employee isn’t clear-cut. For example, maybe you terminated employees and then rehired them. Or perhaps you made JobKeeper payments early, in the expectation of being reimbursed. We’ll update these support pages as we learn more.
These are trying times, and we want you to know we’ve got your back. We’re listening to small businesses, accountants and bookkeepers on how we can help. We’re also working closely with the ATO to ensure you have a smooth experience with JobKeeper. There are more enhancements coming to Xero in the coming days and weeks. In the meantime, be sure you’ve opted-in to STP. It’s the simplest route to getting up and running with JobKeeper and other government stimulus!
Good to know you’ve got our backs on all the changes. Thanks Xero
I was told that the ATO will be prepopulating the jobkeeper payments. Does this mean we generate the payrun but don’t file with ato under STP.
Hi Jennifer, Xero will send your JobKeeper payment information to the ATO using Single Touch Payroll (STP). So if you’ve opted into STP with Xero, we will take care of this for you. ATO will also have alternative methods available for reporting JobKeeper information to them if you don’t use STP. Hope that helps. Cheers, ^BA
This is great to know this is coming, but given that the reporting period ends this Sunday for the first round, clients who don’t pay $1500 already to an eligible employee will miss out, if what the FAQ says on Treasury is accurate. So people might need to do top put payments before the update is out in a few weeks?
Hi Keith, thanks for getting in touch. For anyone who needs to start making JobKeeper payments now, you can do so by setting up an allowance pay item to pay your employees. We have created some Xero Central instructions that explain how you can do this immediately. Our upcoming changes then intend to make this process even easier in the future – we are working on a way to easily update those pay items so they are reportable through STP and expect this feature to be live soon.
Hi Mel, the approval of whether you are eligible as a company or if the specific employee are eligible will only be confirmed after 4 may. I am not going to top up my employees pays before I receive confirmation of eligibility because I run the risk of loosing the money If i dont get reimbursed. So would these employees loose out on payments if I dont top up before confirmation, or can I after confirmation top up their pays.
Hi Gillian,
The ATO has put together a guide on the steps you need to take to be eligible to make claims for the JobKeeper payment. Employer registration is available now, and the requirements of when you need to pay to be eligible for receiving a refund are detailed here.
Unfortunately, for your circumstance we are unable to advise on how you should proceed. You may need to consult with a trusted advisor or the ATO.
You have the whole of April to make 3k in payments its a concession for the first month
Yes but I understand confirmation on eligibility is only 4 MAy
Hi Gillian,
The portal to register for JobKeeper is available now with the ATO. This is where you will initially put in details of your eligibility for your business and your employees. Once this is completed and payments to your employees are made, you would follow the ATO process for the monthly declaration (available from 4 May) where you would reconfirm the eligibility of your business and your reported eligible employees.
The JobKeeper is a reimbursement of wages paid. Payments cannot be made by the ATO in advance.
The ATO has put together a comprehensive guide on the registration and claims process that might help you out here.
I have staff who stopped work weeks ago and have ran out of money. Do we create a pay item in the meantime to get them out of hot water?
Hi Luke,
You can start making JobKeeper payments now by setting up an allowance pay item to pay your employees. The Xero Central instructions are useful in explaining how to do this right now. To make this process simpler in the longer term, we are working on a way to easily update those pay items so they are reportable through STP and we expect this feature to be live soon.
Can I ask why the pay item is set up as an allowance? Isn’t an allowance payment recognized differently by the ATO and the employee will be taxed again on it?
Hi Crystal, this is actually a requirement of the ATO to be able to report the JobKeeper top up information accurately via STP
Thanks, Xero.
Yes, I’d like to know this too.
Hi Debbie,
Not a problem. It is possible to start making JobKeeper payments now – you just need to set up an allowance pay item to pay your employees. You can read our Xero Central instructions to understand how to do this in more detail. As mentioned, we are also working to make this process simpler for you in the longer term. Soon you will be able to easily update those pay items so they are reportable through STP.
If we want to pay our employees the Jobkeeper allowance early, do we jucst create an allowance called ‘Jobkeeper Allowance’? Then make it a flat rate of $1500. That way it is identifyable on the payslip.
Hi James,
That’s right – you can start making JobKeeper payments now by setting up an allowance pay item to pay your employees. For more detail of how to do this, you can visit our Xero Central instructions. For your future payruns, we are working on a way to easily update those pay items so they are reportable through STP. We expect this feature to be live soon.
Thanks Xero. A step by step video clip with suggestions on how to adjust payslips will be greatly appreciated too!
Hi Amanda,
We will be updating this Xero Central article with new resources and step-by-step written instructions once our new JobKeeper feature is released. Keep an eye out for any changes here, or in payroll.
One thing I haven’t read Xero is Super Calculations, if your employee earns under the $750 P/W you only need to pay Super on their actual pre wage thoughts on this ?
Hi Sam, the Treasury website has some really good resources on working out how to pay staff and calculate super. In particular, check out the Fact sheet: JobKeeper Payment – information for employers. This goes through different examples of what to pay in a few different circumstances and you may find it useful in answering your question.
Awesome news !!
Xero is aiming to roll out these enhancements IN THE NEXT FEW WEEKS. Meanwhile employers are required to make these payments to employees NOW or miss out on the reimbursement in May. Why does it take WEEKS to respond to this situation. It just requires adding a simple payment item to the payroll system. Absolutely unbelievable.
Hi Edward. Thanks for your comment. Xero has been working closely with the ATO to ensure we react as quickly as possible to support the necessary changes required of the new legislation. While our upcoming enhancements will make the process simpler, you can still make JobKeeper payments in the meantime. To do so, you will need to set up an allowance pay item. See our Xero Central Instructions for more detail.
Agreeing with Keith above, Treasury states that we need to pay the amount this fortnight. I plan to do a top up payment for this fortnight, ending tomorrow, so that I will be reimbursed. In Xero, I have found an earnings line called ‘Allowance exempt from tax withholding and super’ Is that what we use for now, when doing a pay run?
Hi Dale,
You can set up an allowance pay item to pay your employees if you need to make JobKeeper payments now. With regard to your question on the earnings line, our Xero Central instructions covers this in more detail, so take a read through and it should be of help.
If your usual pay fortnight doesn’t align with the jobKeeper dates is it advisable to change this?
Hi Dee, there is no need to change your pay periods to align with the JobKeeper dates. Simply make sure you’ve made your required JobKeeper payments for all eligible employees for any of your pay periods where your payment date falls within the JobKeeper pay periods. Here’s some helpful information from the ATO about paying your eligible employees. We’ve also put together a page in Xero Central which details some examples of how your pay period would relate to the JobKeeper periods for each of the different calendar cycles
Following on from Dee’s query – I have a fortnight that falls from the 27th March to the 9th of April – do i process a Job Keeper payment for 9/10th of the $1500 for that fortnight as the JK payment only starts from the 30th? Thanks.
Hi Lauren,
The JobKeeper fortnights are actually based on the payment dates of your pay periods, not the pay periods themselves. And you would pay the full amount of the JobKeeper payment, not a pro-rata amount based on how long your pay period overlaps with the JobKeeper period. For example, if the period you mentioned here has a payment date of 10th April, you would pay the full JobKeeper amount of $1,500 per eligible employee for that period. If however, your payment date for that period was on 13th April, you would make your first JobKeeper payments for the previous pay period. Hope that makes sense.
We understand it can be a little confusing so we’ve put together some information on the frequency of the JobKeeper payments and how they relate to your pay periods here.
Hi,
As I understand, one Director or Trustee who was not drawing any wages from the business is also eligible for the Jobkeeper payment. Pls. confirm if it’s right and also how will that get processed through Xero & STP?
Hi Moneet, you can find helpful information on JobKeeper payments for eligible business participants here.
If the director or trustee is set up in Xero Payroll to process the JobKeeper payments, this can be done via STP in Xero. But if they are not set up, the ATO is developing alternative options for reporting this information outside of STP so that you can still claim for eligible participants who are not STP reported.
Hi,
Any sort of update regarding the timing of when you will have this integrated? 4 days is a long time in the time of COVID-19
Thanks
Hi Greg, our JobKeeper feature is actually live right now! Just head over to payroll and click the Payroll support page link from the banner and you can check out the new feature. Also, we have a few new resources in Xero Central to help walk you through the process.
Thanks Mel.
Are the employees entitled to annual leave entitlements and sick leave entitlements when they are stood down but are paid the JobKeeper payment? If so, how do you set this up in Xero?
Hi Audrey, to work out what your employees are entitled to, you may find the answer on this Fair Work page.
When it comes to setting it up in Xero, here’s some information on how to process an employee stand down.
Here’s also some information that walks through some examples of paying an employee the JobKeeper allowance, while they are also on stand down.
Hopefully this helps you manage these circumstances in Xero.
INCORPORATING Jobkeeper in NORMAL PAYRUN
For a normal employee still working full time what will the payslip look like if gross earnings remain at $2000
Ordinary Hours 5$00
Job Keeper Allowance $1500
*Pay Super on $2000
I have been told that the super is only optional on Job Keeper top ups or if the employee has been stood down.
Therefore do we need to set up two pay items to cover all scenarios
Job Keeper Allowance with super
Job Keeper Topup super exempt
Thanks
Hi Katie,
You won’t need to record a top up amount for employees who are already earning over the JobKeeper allowance amount. Just make sure you have set the start fortnight for your eligible employees and just pay them as normal. We have put together a couple of Xero Central pages that covers this topic in more depth:
Process JobKeeper payments
Calculate JobKeeper payments for an employee
Hopefully that helps!
The allowance tab does it let you manage super. Super is only paid for the working hours. Let’s say they worked $1000 super should only be calculated on $1000.
Hi Alison, when it comes to paying staff JobKeeper who are also working, you would just pay them normally for the hours that they have worked (which will then have superannuation paid on those hours) and you would use the JobKeeper allowance pay item to top them up to the required JobKeeper amount (of $1500 per fortnight) for the difference. The JobKeeper allowance pay item does let you control whether you pay superannuation on it or not – we have set it by default to not pay superannuation, but you can change it (or create another one) if you’d like.
If you need some step by step instructions on how to do this, the Xero Central page on processing JobKeeper payments in Xero should help you out here.
Great work on the intergration xero. Looks a very simple way to nominate employees
For employees still working normally do we just process a pay as normal I.e. ordinary earning? So only staff not working will be using the job keeper allowance pay item?
Yes Carolyn, I would like to know the answer to this as well.
Hi Lianna, with the JobKeeper top up payments, you would only need to do a top up for the employees that aren’t earning a minimum of $1500 per fortnight. So if your employee is working as normal and earning more than the minimum JobKeeper amount, you would just pay them as normal. If they are earning less, or not earning anything at all, that’s when you would top them up to $1500 per fortnight (or the equivalent depending on which calendar cycle you are on).
Here are some helpful resources in Xero Central which cover these scenarios (and some others) to help you understand how to calculate the JobKeeper payments for each of your eligible employees.
I hope this helps!
Hi Carolyn, for eligible employees working normally who are earning more than the minimum JobKeeper payment of $1500 per fortnight, yes – you would just pay them their normal wage. Just make sure to record their JobKeeper start fortnight so the ATO knows you are intending on claiming JobKeeper for those employees.
But, where your eligible employees are still working as normal, and are earning less than the required JobKeeper amount, pay them as normal for the hours they have worked, and complete a top up payment (with the JobKeeper allowance pay item) to the required $1500 per fortnight for the difference.
If you need some more information on how to do this in Xero, we have a page in Xero Central that walks you through how to process JobKeeper payments.
Hi, i would like to ask if do we need to accrue Annual Leave and Sick Leave in paying the Job keeper amount? or is it automatically calculated on Xero the same with Ordinary Earnings pay item? Thanks.
Hi, I am a little confused. Can you answer the following queries. Lets assume that the work is slow and the employees hours worked only equates to $1200 for the fortnight. But I am paying $1500 as this is the law pertaining to the amount received.. How is all of this entered… see distinct questions.
1. Is the whole amount – $1500 to be not shown as “Jobkeeper top up allowance” or only that topup part where the ordinary wages for that pay period is less than the $1500. Iam asking this also as the setup on the Jobkeeper top up is PAYG & Super Free.
2. Is Holiday & Sick leave also accrued on the Jobkeeper $1500 a fortnight? It will if we post the ordinary wages.
3. Not sure when the Government is paying from ? I know they are making payments in May but from when?
4. Lets assume they are paying from 1st March, then the lump sum is received and how is it to be treated in the financial accounts. Also
Hi Mel,
For your scenario you would pay them as normal for the hours they have worked. This will make sure that superannuation, plus any benefits such as leave accruals are still calculated on those hours. Then you would top them up to the minimum $1500 per fortnight (or equivalent for your pay cycle) using the JobKeeper allowance pay item. This pay item will not accrue leave, but can incur superannuation payments (if you set it up like that – we have set it by default to be exempt from Superannuation Guarantee). For employees that have been stood down, they would still accrue leave like they normally would, but would also be paid the JobKeeper top up.
As these scenarios can get quite complex, we have put together a page in Xero Central that walks you through the different scenarios of paying your staff JobKeeper payments. This should help you work out which pay items to use, and how much to pay them with the JobKeeper top up allowance pay item.
And in regards to your questions on receiving the payments from the ATO – the portal to make your monthly declarations to complete the claims process will be available from the 4th May. Once this is live you should have more information from the ATO on when the claims are processed and how to handle them for accounting purposes. The ATO’s JobKeeper page is being updated on a regular basis and should have more information on this closer to May.
Hi Jho, sorry we can’t advise what your employees are entitled to, but to work this out, you may find the answer on this Fair Work page.
However, when processing it in Xero, the JobKeeper allowance does not actually accrue leave. If you have determined that your employees should be accruing leave because (for instance) they have been stood down, here’s a Xero Central page that walks through some examples of paying an employee the JobKeeper allowance, while they are also on stand down.
Also, here’s some helpful information on the employee stand down process in Xero.
Hopefully that’ll help you manage these circumstances in Xero.
If you apply for STP in xero, do you still have to apply for it on the ATO website?
Hi Andrew, when registering for STP, you would opt in through Xero, and will be directed to a couple of different options for contacting the ATO to complete your registration. There are also some instructions on Xero to help walk you through how to set up Single Touch Payroll.
And, in regards to applying for JobKeeper with STP – yes, Xero will allow you to record and report all of the employee JobKeeper enrolment and payments, but you will still have to claim for the refunds via the ATO portal. Hope that helps.
Hi,
I have already processed the first forth night Job Keeper payment and submitted the STP but the pay was processed as ordinary time earnings. Can I reverse the ordinary time pay and replace with Job Keeper payment pay item? and resubmit STP again?
Hi Julie, yes you can reverse out any JobKeeper payments that you have previously processed so that you can use the required JobKeeper pay item. We have instructions on how to adjust previous JobKeeper payments in Xero Central to help you out.
Hi, do you need to add the new JobKeeper allowance pay item to the employees payslip if they are nominated for JobKeeper but are not receiving a top up as they continue to earn over the $1,500 per fortnight?
Thank you
Hi Holly, no there is no need to add the JobKeeper top up allowance to your eligible employees who are earning more than the minimum JobKeeper amounts. All you need to do is make sure you have set a JobKeeper start fortnight for them so the ATO knows you are claiming for those employees. Then all you have to do is just pay them as normal and file with STP.
What if your employee earns more than the jobkeeper payment?
Are the total earnings recorded under this job keeper top up or does it need to be split?
Hi Allison,
When your eligible employees are earning more than the JobKeeper minimum amount, just pay them as normal. If the are earning less than the required $1500 per fortnight (even for those who are earning $0), this is where you would use the JobKeeper allowance to top them up to the $1500 per fortnight to cover the difference between what they have earned and the minimum amount.
As this can be a bit confusing, we have put together some resources in Xero Central to help you out with this. You can see some different scenarios to help you calculate how much to pay with the JobKeeper pay item and also, step by step instructions on processing the JobKeeper payment in Xero.
Hopefully these will help you with your circumstance.
Hi there,
I’m a little confused as how to enter the gap amount for those employees working above the $750/wk.
For example, say the earnings comes to 850/week, 750 is paid via JobKeeper. How is the $100 entered, so that correct leave accrual is calculated on hours worked and super calculated on the $100?
Thanks
Hi Christine,
When you are processing JobKeeper payments for eligible employees that are still working, you would actually just pay them like you normally would, then (if they earn less than the required JobKeeper amount of $1500 per fortnight) pay them the difference with the new JobKeeper pay item, to top them up to the required amount. If your eligible employees are already earning more than the required minimum JobKeeper amount, there will be no need to do a top up for them at all. Just make sure that you have entered their JobKeeper start fortnight so the ATO knows who you are claiming for.
We have some helpful resources on Xero Central that walks you through some of these scenarios and step by step instructions on processing JobKeeper payments in Xero.
I hope this helps!
How will it work if your pay cycle doen’t coincide with the Job Keeper pay cycle. Eg if you pay fortnightly but one week of the pay is before the commencement of JobKeeper and one week is after the commencement?
Hi Wendy, your pay periods does not need to to align with the JobKeeper dates. Simply make sure you’ve made your required JobKeeper payments for all eligible employees for any of your pay periods where your payment date falls within the JobKeeper pay periods. And you won’t need to pro-rata these payments either. Here is an example that might help you out:
Say I have a fortnightly pay period that goes from 19 March – 1 April, and my payment date for that period is 2 April. My pay period doesn’t align with the first JobKeeper fortnight, but since my payment date falls in that fortnight (30 March – 12 April) that is the first period that I am paying my eligible employees JobKeeper payments. And I would top them up for the entire JobKeeper amount ($1500 per fortnight), not just the 3 days that my pay period overlaps with the JobKeeper cycle.
We have some examples available in Xero Central which walks you through the frequency of JobKeeper payments, depending on the payment cycle your pay calendars are on which should hopefully help you out some more. And here’s some helpful information from the ATO about paying your eligible employees.
Hi if our pay fortnight runs 23 March to 5 April and we qualify for JobKeeper do I pay $750 per employee eligible for this particular fortnight? Then $1500 for the following fortnight 6 April to 19 April and so on for each fortnight onwards? Thanks.
Hi Louise, you don’t actually need to pro-rata the amount of the JobKeeper payment for your eligible employees, as this is based on the payment date of your pay period. So you would just need to make sure your eligible employees are paid the $1500 per fortnight (or equivalent if you are on a different pay cycle to fortnightly) for each pay period where the payment date falls within the JobKeeper periods.
Here’s some helpful information from the ATO about paying your eligible employees. And we have some examples available in Xero Central which walks you through the frequency of JobKeeper payments and how they align with the JobKeeper fortnights.
I hope this helps.
May be a silly question, but i assume we still need to follow the ATO enrolment process via the portal? Ie. Nominating the employees via Xero Jobkeeper payroll doesn’t do that for you?
Hi Heidi, that’s correct. A business will still need to register its intention to claim JobKeeper via the ATO portals, as well as report their employee’s JobKeeper information via STP. The ATO have put together a nice guide that should help walk you through the entire JobKeeper process.
I have clicked on your JobKeeper calculator but you will only allow us to use March as a comparable month we cant choose April for instance
Hi Andrew, the Turnover Calculator has now been updated to support comparing multiple months.
Xero’s products and content are being updated regularly with the changes in this situation, so make sure to keep an eye out on the “what we’re working on” section of Payroll JobKeeper support and the BAS Turnover Calculator for more information.
Our fortnight payruns related to Jobkeeper payments are on 6April2020 (for $750 – 1 week JobKeeper – since it only started on 30March2020) , then 20April2020 (for $1,500), then on 4May2020 (for another $1,500). Just wondering if the company will receive the full amount $3000 for each eligible employee at the end of April? even though the remaining $750 Jobkeeper related to April will only be included in the 4May2020 payrun?
Hi Amile,
The JobKeeper fortnights are actually based on the payment dates of your pay periods, not the timeframe of your pay periods. And you would pay the full amount of the JobKeeper payment for each of your pay periods, not a pro-rata amount based on how long your pay period overlaps with the JobKeeper cycle.
So for your examples, assuming what you have quoted here is the payment date, you would pay the full $1500 for the period where your payment date was 6 April and continue on from there.
We understand it can be a little confusing so we’ve put together some information on the frequency of the JobKeeper payments and how they relate to your pay periods here. If you find that you need to make a correction and make additional payments for JobKeeper amounts missed in April, we have put together instructions in Xero Central which should walk you through this process.
I did a pay slip using JobKeeper top up item and no leave accrued on the JobKeeper payment. Is this correct? Entitlements do not accrue on JobKeeper?
Hi Claire,
That’s correct – the JobKeeper allowance does not accrue leave. For employees that are still working, you should pay them normally so they can still get entitlements like leave accrual and Superannuation Guarantee. Then you would top up their pay to the required JobKeeper amount for the difference, using the JobKeeper allowance pay item. There are other circumstances where an employee may need to accrue leave on time when they are not working (for example when an employee is on stand down). We have run through a few scenario examples in Xero Central which may help you out here.
If you find that you need to make an adjustment JobKeeper payments you have already processed, there are step by step instructions available for you too.
I am just applying for JobKeeper today and have nominated employees for eligibility though Xero.
However, it says it will send this information to the the ATO with the next STP pay run filing. The next filing is after 30 April – does this matter?
Hi Sammy, depending on when your next filing is, you may need to file sooner.
If you have already paid your employees JobKeeper payments (and filed with STP) before you updated your JobKeeper pay item and nominated your employees, there are some step by step instructions to guide you through how to file this information to the ATO.
And if you still need to pay your employees for JobKeeper payments missed in April, here is another Xero Central page that will walk you through how to process this.
Hi there, if you have employees that haven’t actually worked and you want to pay them the $1500 to be eligible, would this be ordinary hours or would it be the allocated as the JobKeeper top up account?
Hi Melissa, you would only pay employees ordinary hours for hours they have worked, and you would use the new JobKeeper allowance pay item to top them up to the $1500 per fortnight. We have put together a Xero Central page which should walk you through a few different examples of how this would work, depending on the situation each of your employees are in.
I hope this helps!
Hi, could you please advise if you use STP in xero do we need to apply to the ATO for jobkeeper? or will they use the FN01 when filed as application for Jobkeeper.
Thankyou
Great work on simplifying it in xero as much as possible
Hi Anne, businesses will still need to apply for JobKeeper on an ATO Portal. Xero Payroll has simplified the enrolment and reporting of eligible employees. The ATO has put together a helpful guide for employers reporting JobKeeper through STP, that can walk you through the entire JobKeeper process.
Hi, my husband registered our business for job keeper however he can’t remember if he listed all of our employees when he registered. If this goes through from STP I’m thinking it shouldn’t matter if he left someone off the initial list as they will appear here?
Hi Meredith, on May 4, you will be able to login to the ATO Portal and see a list of eligible or reported employees and confirm them before you receive your first payment.
If I created my own pay item for JobKeeper (as a fixed amount allowance), can I continue using this or do I need to use the one created by Xero? My item is set up the same way as the Xero one, except the name is different. Thanks.
Hi Lauren, yes you can continue to use the JobKeeper pay item that you created, you just need to make sure it is set up correctly to file as a JobKeeper payment via STP. We have instructions in Xero Central which walks you through this exact scenario. Once you are all set up to report correctly with your pay item you can either deactivate or delete the Xero created pay item (if you’d prefer).
Hi there,
Just wondering why the job keeper top up payment is set up as an ‘allowance’ doesn’t the ATO recognize this differently and tax the employee on it come time to do their tax returns? So they will technically be taxed twice?
Hi Crystal, this is actually a requirement of the ATO to be able to report the JobKeeper top up information accurately via STP
I set up a Jobkeeper allowance based on your instructions from a few weeks ago. We have processed all the pay runs this month using that allowance. I have just read and updated the allowance as per your new instructions after the pay runs were complete.
It says I need to process and file an unscheduled pay run. Does this mean re-running all the pay runs that included the allowance?
Hi Ajah, no you will not need to re-run all of your pay runs. This can be done by processing a single uncheduled pay run (per calendar) for your JobKeeper employees. This is done so that the updated JobKeeper information is filed to the ATO in the required timeframe. We have some step by step instructions in Xero Central which should help you with this process
If my employees are still working and already earned over $750 a week, do I need to add this new Job Keeper earnings line into their payslips, or can I just pay them as usual and ATO will see they have been paid above the required amount? Is there anything I need to do in Xero for the ATO?
Thanks
Hi Sam, in this scenario no, you won’t have to complete any additional top ups for your employees. We have written up a few example scenarios that walks you through what would be required for JobKeeper top ups in Xero Central which should give you some additional guidance here.
Self employed here, what should I be reconciling my payments as? ‘260 – Other Income’ & ‘GST Free income’?
Hi Destin, thanks for your comment. You’re best getting in touch with your accountant or financial adviser because they’ll be able to provide you with some clear guidance. You can also find some useful information here on the ATO website.
Hi Xero,
Based on my figures at the time, I enrolled my business for JobKeeper via the business portal, but I didn’t initiate JobKeeper on Xero by selecting ‘Start JobKeeper’ for each member of staff (that Xero had recommended as being eligible). The reason I hesitated was because our business suddenly picked up unexpectedly, and by the end of March we were suddenly ineligible to receive JobKeeper., and have remained as such for April. The only trouble is that Xero’s interaction with the ATO via STP payroll has leaves Xero still expecting all my staff to be paid the intial $750 of their wage via the JobKeeper pay item. So for for some reason eithe Xero of the ATO isn’t accepting my efforts to file my employee wages via STP. In the interim I have contacted the ATO and requested that we be un-enrolled from JobKeeper, (which the eventually managed to do after plenty of messing around). But even after being un-enrolled I’m still unable to file my employee wages, despite me never attributing even a cent to the JobKeeper pay item for aof my ny employees. I have also made all JobKeeper pay items inactive, but still to no avail. I still can’t file my employee wages using STP. Help?….anyone?
How do we set up in our accounts for job keeper receipts from the ATO
We know how to handle payments made to employees but not how to handle receipts from the ATO
Hi Maree, when you receive the JobKeeper payment from the ATO, reconcile the statement line in Xero to a receive money transaction. If you need advice on the account and tax rate you should use, please speak with your accountant or bookkeeper who will be able to provide some guidance. You can find more information about processing JobKeeper payments here.
Hello, Can someone please help me with a step by step guide in changing an employees Job Keeper END DATE so I can process his final pay. He has resigned and has never needed the Job Keeper even though all our employees were registered for it.
Hi Ros, can you please raise a case with our Support team who will be able to contact you directly to give you a hand. Thanks!