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Australia only

ATO support for businesses during COVID-19

For the latest information about ATO measures and the support available for your business, visit ato.gov.au/coronavirus

The Australian Government has announced a wage subsidy scheme (dubbed JobKeeper) to help businesses impacted by COVID-19.

The JobKeeper scheme will reimburse eligible employers up to $1500 per fortnight for each eligible employee. The scheme will run for six months, backdated to 1 March 2020. From the first week in May, JobKeeper payments will go to eligible employers who have registered for the scheme.

Registering for JobKeeper payments

Check if your business and employees are eligible for JobKeeper payments by visiting business.gov.au.

If eligible, you can register your interest in applying for the scheme via the ATO website. Also, as part of the application process, make sure the ATO has your current banking details so they can pay your JobKeeper reimbursements.

Managing JobKeeper payment in MYOB Essentials 

First, let's establish the JobKeeper payment amounts you'll need to pay (before tax) based on an employee's pay frequency:

 

Pay frequencyJobKeeper payment amountCalculation
Weekly$7501500 / 2
Fortnightly$15001500 X 1
Twice a month$16251500 X 26 / 24
Monthly$32501500 X 26 /12

Also, how you manage these payments in MYOB Essentials will depend on an employee's regular income.

If an employee's income isYou'll need to
Less than the JobKeeper paymentPay them the full JobKeeper payment. You can choose whether or not to pay superannuation on the extra amount (the amount above the employee's regular income).
More than the JobKeeper paymentPay them the full JobKeeper payment, plus a top-up payment to ensure they're paid their regular income. Super is payable on the total payment.

To make it easy for you, your employees, and the ATO to know how you've paid the JobKeeper payments, you'll set up a new JobKeeper pay item. This also means the payments will clearly be shown on your employees' pay slips.

If an employee normally earns less than the JobKeeper payment, there's an additional pay item you might need to set up.

If our solution below doesn't meet your needs, you might need to discuss your options with an accounting advisor.

1. Set up a JobKeeper pay item

1. Set up a JobKeeper pay item

  1. Go to the Payroll menu and choose Employees.
  2. Click the employee's name.
  3. Click the Pay items - earnings & deductions tab.
  4. Under Earnings, add a new earning called JobKeeper Payment or similar.

  5. For the Rate, choose Multiplier of normal rate.

  6. Enter a value of 1 in the Multiply by field.

  7. As the JobKeeper amount will be considered part of the employee's PAYG income, choose Taxable in the Tax field.
  8. Select Pay super on this earning.
  9. Select whether to Accrue annual and sick leave on this earning. Check with your accounting advisor or the ATO if you're not sure.
  10. Choose an ATO reporting category. Again, check with your accounting advisor or the ATO if you're not sure about this. Learn more about creating pay items.
  11. Click Save. The new earning is now listed for the employee.
    Here's our example pay item:
  12. Click Save to save your changes to the employee.
2. Set up a JobKeeper pay item exempt from super (optional)

2. Set up a JobKeeper pay item exempt from super (optional)

This task is only applicable if:

  • you have employees who earn less than the JobKeeper payment, and
  • you won't be paying superannuation on amounts they're paid above their regular income).

If you'll be paying superannuation on top-up amounts, skip this task and just use the pay item you created in the previous task.

As per the government's information, you must pay super on an employee's regular pay amount, but you can choose whether to pay super on top-up amounts.

Take a look at these examples for fortnightly paid employees:

Regular fortnightly incomeFortnightly income with JobKeeperYou must pay super onYou can choose to pay super on
$1000$1500$1000$500
$1500$1500$1500N/A
$3000$3000$3000N/A
Set up a JobKeeper pay item exempt from super

Set up a JobKeeper pay item exempt from super

  1. Go to the Payroll menu and choose Employees.
  2. Click the employee's name.
  3. Click the Pay items - earnings & deductions tab.
  4. Under Earnings, add a new earning called JobKeeper Payment Exc Super or similar.

  5. For the Rate, choose Multiplier of normal rate.

  6. Enter a value of 1 in the Multiply by field.

  7. As the JobKeeper amount will be considered part of the employee's PAYG income, select Taxable in the Tax field.
  8. Ensure that the option, Pay super on this earning is deselected.
  9. Select whether to Accrue annual and sick leave on this earning. Check with your accounting advisor or the ATO if you're not sure.
  10. Choose an ATO reporting category. Again, check with your accounting advisor or the ATO if you're not sure about this. Learn more about creating pay items.
  11. Click Save. The new earning is now listed for the employee.
    Here's our example pay item:
  12. Click Save to save your changes to the employee.
3. Pay your employees

Pay your employees

Start doing a pay run as you normally would. Need a refresher?

Enter the number of paid hours against the JobKeeper Payment pay item and reduce their Normal hours by the same amount.

If an employee's income isDo this
Less than the JobKeeper payment
  1. Enter their regular hours against the JobKeeper Payment pay item.
  2. Enter the top-up hours (to bring their pay up to the required JobKeeper payment amount):
    • If you're not paying super on the top-up, enter the top-up against the JobKeeper Payment Excl Super pay item.
    • If you're paying super on the top-up, enter the top-up against Normal.

More than the JobKeeper payment

  1. Enter the JobKeeper payment amount against the JobKeeper Payment pay item.
  2. Enter the top-up amount (to bring their pay up to their normal pay amount) against Normal.

Here's some examples:

Example 1

Here's an example of a part-time employee (working 40 hours a fortnight) whose fortnightly pay is less than the JobKeeper amount. They normally earn $1000 a fortnight. Under JobKeeper, they'll earn $1500 a fortnight. We've chosen not to pay super on the $500 JobKeeper top-up amount.

We need to enter their regular hours against the JobKeeper Payment pay item and enter the top-up hours ($500 / 25) against the JobKeeper Payment Excl Super pay item (if we were paying super on the top-up amount, we'd enter all $1500 against the JobKeeper Payment pay item). As all of their income will be from the JobKeeper payment, we also need to enter 0 hours against Normal:

Example 2

Here's an employee whose fortnightly pay is more than the JobKeeper amount. They normally earn $2000 a fortnight. Under JobKeeper, they'll still earn $2000 a fortnight ($1500 JobKeeper payment + $500 employer top-up). So we need to enter the hours for the $1500 JobKeeper payment amount against the JobKeeper Payment pay item and enter the hours for the $500 employer contribution against Normal:

After entering the JobKeeper amount and adjusting the employee's Normal amount, complete the rest of the pay run as normal.

4. Receive JobKeeper payments from the government

4. Receive JobKeeper payments from the government

The JobKeeper payments from the government will be deposited into your nominated bank account. Here's how to record those payments in MYOB Essentials.

If you use bank feeds

The deposits from the government will appear in MYOB Essentials when your bank feed transactions appear.

  • If you've already recorded a Receive Money transaction for the deposit (as described below), you can match the bank feed transaction to it.
  • If you haven't already recorded a Receive Money transaction for the deposit, you can allocate the deposit to your wages expense account (the same account your wages are paid from). For details about how to do this, see Allocating bank transactions.

If you don't use bank feeds, you'll need to manually record a Receive Money transaction.

Here's how:

To manually record a Receive Money transaction

To manually record a Receive Money transaction

  1. Create a Receive Money transaction (Banking menu> Receive money). Need a refresher?
  2. In the Deposit into field, select the account the money is being deposited into.
  3. In the Notes field, enter a description for this transaction.
  4. If you've set the Australian Government up as a contact, choose it from the Payer list, or add the Australian Government as a contact by selecting Add customer from the Payer list and entering their details in the page that appears.
  5. In the Allocate to field, select your wage expense account.
  6. In the Amount column, enter the JobKeeper payment amount you've received.
    Here's our example:
  7. Click Save.

 

 

 
Related topics

Creating pay items

Do a pay run

Receive money

 

 

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