Administered through STP, JobMaker provides a payment to employers of $200 per week for eligible new employees aged between 16 and 29, and $100 per week for eligible employees aged between 30 to 35 years for 12 months. The hiring credit availability is for jobs created from October 7th, 2020 until October 6th, 2021.
JobMaker cannot be claimed for employees or business participants receiving JobKeeper.
DEADLINE – 6th Jan 2021
The first claim period for JobMaker ends on January 6th, 2021 and the clients are required to get enrolled by this date to make claim for the first period.
Since the details of registration makes a baseline for the JobMaker, it is crucial that these are correct before the first claim is made. The details of baseline cannot be amended if the first claim is made.
Following are the three tests for JobMaker:
- Eligibility of Employer
- He must have an ABN
- He must be up to date with tax lodgement
- He must be registered for PAYG
- He must be reporting through Single Touch Payroll
- He must keep sufficient records of the paid hours worked by an employee for whom they are claiming credit for
- Any other employer is not claiming JobMaker for the same employee
- Eligibility of Employee
- He must have received the JobSeeker Payment, Youth Allowance or Parenting Payment for minimum of one month within three months before they got hired
- Between 16 and 35 years of age at the time of initiation of their employment
- Worked for minimum 20 hours each week on average for full weeks employed for a specific period being claimed. If an employee worked less than 20 hours, the employer cannot claim JobMaker on their behalf during that period.
- Initiated work between October 7th, 2020 and October 6th, 2021
- First year of employment with employer
- The employer not receives other forms of assistance from the Commonwealth Government for the employee, like JobKeeper or apprenticeship subsidy
- Additional Employee Test
- The total headcount of employee on the last day of reporting period enhances by minimum of one additional employee as compared initially to September 30th, 2020 then to the prior reporting period.
- The total payroll for the reporting period compared initially to September quarter 2020, then to the previous reporting period. The hiring credit cannot be more than increase in the payroll.,
The government entities or the agencies, banks and other institutions subject to the bank levy, businesses in liquidation, and the foreign Government entities are not able to access JobMaker.
The JobMaker rules need:
- The baseline headcount as at September 30th, 2020
- The total payroll paid in three months up to and including October 6th, 2020
Moreover, employees will require completing a JobMaker employee notice.
The headcount and the payroll calculations for JobMaker could be complex. Under the “additionality test”, JobMaker could be claimed if there is an enhancement in headcount and payroll for that period as compared to the relevant baseline figures. Consequently, there will be issues like employers are required to verify their payroll and headcount against their baseline amount every JobMaker period.
The headcount and payroll increase is measured on the last day of each JobMaker period.
The baseline headcount amount is initially the number of people employed by the entity on September 30th, 2020. This will be adjusted in the second year of the JobMaker scheme based on the claims that were made in the first year of the scheme.
The baseline payroll amount depends on the number of days in the JobMaker period. Initially entities will provide the payroll for the 92 day period ending on 6 October 2020. This will be the baseline payroll amount for the first JobMaker period. However, this will need to be adjusted for each JobMaker period that is a different length. For example, the second JobMaker period has 90 days so the baseline payroll for that period will be the payroll expenses in the 90 day period from 9 July 2020 to 6 October 2020.
If a business commenced after 6 October 2020, then its baseline headcount and payroll amount would normally be zero (at least initially).
How you may register
You can enroll clients via the ATO portal or clients can register themselves via ATO online services or the business portal – see the COVID-19 screen then select ‘JobMaker Hiring Credit’.
Reliable Bookkeeping Accountants are always here to assist our clients with random declarations made by authorities on JobMaker Hiring Credit Rules. To know more and to get assistance, Call now: 1300 049 534