JobKeeper payment in Payroll Guru

How to manage JobKeeper payments in Payroll Guru

How to add the allowance types and stood down to an employee

Configuring the allowance for STP

Terminating the JobKeeper payment arrangement 

Re-enrolling an employee for the JobKeeper payment arrangement

Examples

 

PLEASE NOTE: Given the frequency of information being released by the ATO relating to the JobKeeper subsidy, it is important for all clients to reference the ATO’s JobKeeper Payment Site for up to date information. 

This includes the recently announced  Enrolment Process for employers which can commence from 20 April 2020. It is a requirement as part of the enrolment process for both the employer and employee to complete the JobKeeper Employee Nomination Notice.

 

How to manage JobKeeper payments in Payroll Guru

1. Establish JobKeeper payment amounts

Pay frequency JobKeeper payment amount
Weekly $750
Fortnightly $1500

 

2. Determine employee scenario

Scenario What is required?
The employee is being paid less than the JobKeeper payment Pay the employee as normal but top up the amount paid to match the JobKeeper payment amount.  

You can choose whether or not to pay superannuation on the top-up amount.

The employee is being paid more than the JobKeeper payment Continue to pay the employee normally, for the first pay slip where you need to claim the JobKeeper payment via STP, add a $0 JobKeeper line to the employees pay slip.  This only needs to be added to the first pay slip, unless they earn less than $1500 on subsequent pay slips. 
The employee is stood down, still employed but not working Pay the employee the full JobKeeper payment. Superannuation and leave accrual may or may not apply to the employee. Seek advice if unsure. 

 

3. Determine employee's allowance types and stood down rate type (if required) and add to their profiles

Allowance type (for the JobKeeper payment)

The required allowance type needs to be added to each employee with the required dollar amount that needs to be paid.   

See the section below "How to add the allowance types and stood down to an employee" for how to add them to the employees profile. 

Allowance Type Standard OTE PAYG Allowance
JobKeeper OTE + Standard + Allowance + PAYG Yes Yes Yes Yes
JobKeeper non-OTE + Standard + Allowance + PAYG Yes No Yes Yes
JobKeeper OTE + non-Standard + Allowance + PAYG No Yes Yes Yes
JobKeeper non-OTE + non-Standard + Allowance + PAYG No No Yes

Yes

  • Standard = If leave entitlement accrual should be calculated (based on the hours in the category, only applicable to hour types (not day, week, month or unit types)
  • OTE = If superannuation should be calculated
  • PAYG = If PAYG should be calculated
  • Allowance = The ATO requires JobKeeper payments to be defined as an allowance

 

Rate Type (for the Stood Down leave accrual category)

The Stood Down rate type should be added to any employees that are required to accrue leave entitlements.

Rate Type Standard OTE PAYG
Stood Down Yes No Yes
  • Standard = If leave entitlement accrual should be calculated (based on the hours in the category)
  • OTE = If superannuation should be calculated
  • PAYG = If PAYG should be calculated (this rate type will be $0, therefore, no PAYG will be calculated)

 

4. Enrol staff in the JobKeeper arrangement

Enrol a staff member in the JobKeeper arrangement.

  • The enrolment of staff in JobKeeper payments must be marked by a check in the box on the employee's payslip in Payroll Guru.
    • This will trigger the system to begin JobKeeper payments from that payslip payroll period onwards.
  1. Within an ad hoc payrun (backdated to the payroll period that the staff member became eligible to receive the JK payment), create the employees final pay slip
  2. Click the employees name in the pay run
  3. Check "Job keeper first payment" and click update
    • mceclip0.png
  4. Click back to the payrun and repeat for other employees (as required). 

 

5. Process the pay run

** Ensure the allowance is correctly configured for STP before processing the pay run. See section Configuring the Allowance for STP below **

Pay runs should be processed for each payroll period where the payment needs to be made. Multiple JobKeeper period payments should not be added to the same pay slip.

When processing the pay run, the required allowance type payment and stood down rates will need to be added to the pay slips. Examples have been provided at the end of this document. 

 

How to add the allowance types and stood down to an employee

Adding the allowance type

The required allowance types need to be added to the employee.

  1. Open Payroll Guru
  2. Click Employees on the left
  3. Click List Employees
  4. Click the employee
  5. Click Edit next to "Rates of pay and allowances"
  6. Under Allowance Type:
    • Select the required allowance type from the list (see section Allowance type (for the JobKeeper payment) above)
    • Enter the amount per hour
    • Enter a default per pay if required which will automatically add the number of hours when a pay slip is created for the employee 
    • Enter a comment if required
  7. Click Add allowance
  8. Repeat for another allowance if required

 

Adding the stood down

  1. Open Payroll Guru
  2. Click Employees on the left
  3. Click List Employees
  4. Click the employee
  5. Click Edit next to "Rates of pay and allowances"
  6. Under Rate Type
    • Select "Stood Down"
    • Enter the amount per hour as $0
    • Enter a default per pay if required which will automatically add the number of hours when a pay slip is created for the employee 
    • Enter a comment if required
  7. Click Add Pay Rate

 

Configuring the Allowance for STP

The JobKeeper allowance must be configured to be included in gross wages - otherwise, the allowance will be reported twice in the STP data submitted to the ATO.

  1. Click reports
  2. Click PAYG summary
  3. Click Allowance setup 
  4. Set the JobKeeper allowances to include in PAYGPS and include in gross wages  

 

Terminating the JobKeeper payment arrangement  

Reporting of exit of eligibility or termination of JobKeeper payment

  • The end of JobKeeper payment must be marked by a check in the box on the employees payslip in PG.
    • This will trigger the system to cease the JobKeeper payment after that payslip payroll period. 
  1. Within the in-progress pay run, create the employees final pay slip
  2. Click the employees name in the in-progress pay run
  3. Check "Job keeper final payment" and click update
    • 2020-04-21_14h04_29.png
  4. Click back to pay run and repeat for other employees. 

 

Re-enrolling an employee for the JobKeeper payment arrangement  

Re- enrolling a previously terminated JobKeeper staff member.

  • The re-enrolment of JobKeeper payment for an employee that has been previously terminated from receiving JK payments must be marked by a check in the box on the employee's payslip in PG.
    • This will trigger the system to resume the JobKeeper payment from that payslip payroll period onwards.
  1. Within an ad hoc payrun (backdated to the payroll period that the staff member became eligible to receive the JK payment), create the employees final pay slip
  2. Click the employees name in the pay run
  3. Check "Job keeper first payment" and click update
    • mceclip0.png
  4. Click back to pay run and repeat for other employees (as required). 

 

Examples

Example 1 - stood down full-time employee

** The following should be considered an example and not advice as to how JobKeeper should be paid. If unsure, speak to your payroll advisor **

The following is a full time employee on a 76 hour contract per fortnight that has been stood down. The payroll period of this organisation is fortnightly and is paid fortnightly.

The JobKeeper payment category is configured to not accrue leave entitlements (standard = no) and not pay superannuation (OTE = no) and the Stood Down category is set to accrue leave entitlements (standard = yes)

2020-04-21_11h19_51.png.

 

Example 2 - stood down part-time employee

** The following should be considered an example and not advice as to how JobKeeper should be paid. If unsure, speak to your payroll advisor **

The following is a part time employee on a 40 hour contract per fortnight that has been stood down. The payroll period of this organisation is fortnightly and is paid fortnightly.

The JobKeeper payment category is configured to not accrue leave entitlements (standard = no) and not pay superannuation (OTE = no) and the Stood Down category is set to accrue leave entitlements (standard = yes)

2020-04-21_11h24_33.png.

 

 

Example 3 - part-time employee being paid under $1500 

** The following should be considered an example and not advice as to how JobKeeper should be paid. If unsure, speak to your payroll advisor **

The following is a part time employee that is continuing to work and has not been stood down. The employee worked 40 hours for the fortnight  and is paid fortnightly.

The JobKeeper payment category is configured to not accrue leave entitlements (standard = no) and not pay superannuation (OTE = no).

The employee has accrued leave entitlements on the 40 hours of work. If the employee should accrue entitlements on a greater number of hours (e.g. to take them up to their contracted hours), add another category to the employee that is standard = yes with a $0 rate, to accrue on these hours. 

2020-04-21_11h40_03.png 

 

Example 4 - casual employee being paid under $1500 

** The following should be considered an example and not advice as to how JobKeeper should be paid. If unsure, speak to your payroll advisor **

The following is a casual employee who is continuing to work and has not been stood down. The employee worked 20 hours for the fortnight and is paid fortnightly.

The JobKeeper payment category is configured to not accrue leave entitlements (standard = no) and not pay superannuation (OTE = no).  

2020-04-21_11h52_33.png 

 

Example 5 - employee earning over $1500 (first pay slip)

** The following should be considered an example and not advice as to how JobKeeper should be paid. If unsure, speak to your payroll advisor **

The following employee is earning over $1500 and is paid fortnightly.  This is the first pay slip where the JobKeeper payment needs to be claimed via STP.  This only needs to be done on the employees first pay slip if they continue to earn over $1500.  If not, a top up payment will need to be added (see examples above). 

The JobKeeper payment category is configured to not accrue leave entitlements (standard = no) and not pay superannuation (OTE = no).  

2020-04-21_16h29_07.png 

 

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