JobKeeper Information – who are eligible employees?
The ATO is constantly releasing information relating to the JobKeeper package. The following is correct based on the information available as at 20 April, 2020
JobKeeper – Employee Information
Can an employee register for JobKeeper on behalf of their employer?
No. Employers needs to register.
The ATO has placed the responsibility on the employer to:
- Determine if they are eligible (turnover test)
- Determine who are the eligible employees (determining eligible casuals have credited a determine here, see eligible employee video)
- Register for JobKeeper
Some businesses are wary about registering as the ATO has warned that if a business claims the JobKeeper payment for an employee who is not eligible, then the employer will have to pay this back to the ATO. This potentially significant risk could add up to $19,500 per employee.
I am aware of some large employers (my son’s employer included) are requesting more information from the ATO as the risk for them is significant. The result is many employees are in limbo.
Who are Eligible Employees? (see video above)
Eligible Employees:
- Are employed by you, including those stood down or re-hired (if they have resigned you can’t reemploy);
- were either:
- permanent full-time or part-time employee at 1 March 2020; or
- long-term casual employee (employed on a regular and systematic basis for at least 12 months) as at 1 March 2020 and not a permanent employee of any other employer.
Unfortunately, the casual definition is not clear and defined and subsequently, the risk (outlined above) is significant to the employer if the employee is not deemed to be eligible.
To find out what makes Employers eligible, please see our article https://www.mjnaccounting.com.au/news-articles/jobkeeper-payments-who-are-eligible-employers. You can also download the handy checklist before you register.