ACAPMA Daily COVID-19 Roundup | as at 17:00 16/4/2020
This is a must read update, which outlines a criterial path and an action plan for Jog Keepers, The legislation goes live on the 20th of this month, its important that you have registered with the ATO. Please scroll down all the way.
I have a few more articles I want to send out to night which I feel may help
- online Covid 19 Training session for all employee
Takes about ½ an hour to compete and at the end the employee have a greater understanding how to keep safe, My understanding (which means I haven’t done it) is they receive a certificate at the end which can be displayed in store, this in turn will give your customers greater confidence about being served by your staff
- Counselling Service By PML
Last night, Philip Morris launched a free and confidential counselling service as well as access to other general services such as financial coaching and introductory legal advice. This 5 session offer from the Philip Morris provider ‘Assure’. This is a great initiative by PML, its shows a lot of empathy from a large company, I hope you don’t need it but just incase
Note: The EDM has been sent to all members that are registered on the Philip Morris Trade Portal.
- Consumer Behaviour changed Webinar next Monday and invitation will be sent out soon
Good night, please keep safe, positive and most of all awesome
We are all one more day closer to that family BBQ J
Download: JobKeeper Fictional Example
Daily COVID-19 Roundup | as at 17:00 16/04/2020
This is a short message to capture the items of change and interest for businesses in the downstream petroleum industry in light of the COVID-19 situation.
Pro Tip: Make sure you go all the way to the bottom for todays fun fact.
This message has been sent to the Principle for each business as per the ACAPMA Member Register. Please feel free to forward through your business as required.
Follow ACAPMA on LinkedIn for articles and resources as they are released, so you don’t have to wait until COB to get your information; https://au.linkedin.com/company/australasian-convenience-and-petroleum-marketers-association-acapma-
Whats New - Changes and Items of Interest
- Does a business HAVE to apply for JobKeeper
Today the unions are banging a drum about the moral obligation of businesses who are eligible for the JobKeeper Program to apply and to participate. The fact is that the choice to participate or not is one for the business to make. There are implications that businesses are considering when deciding if they will choose to apply. Such as one in all in, which requires the business to apply for the JobKeeper for ALL of the eligible staff that consent on the Nomination Form. The uncertainty of how the payments will be treated by State Payroll Tax and Workers Compensation legislation is another consideration. The fact is, that despite the unions clamour, the decision is up to the business. You only have to apply, if you want to.
- JobKeeper Wage Subsidy program – Working through the detail
While we all await the 20/4/2020 when businesses can login to the ATO site and officially Apply for the JobKeeper Program, and hope, with everything we have that the system does not crash, and that Approvals are issued smoothly…today has been a flurry of detail questions. I know each and every one of you has taken the time to read the two ACAPMA articles and are therefore completely across all of the details (😊😊😊). But seriously, what was a distant and academic thing a few weeks ago is to put it bluntly “getting real fast”. It is really important that businesses understand the eligibility, the responsibilities and the detailed steps and deadlines – none more important than the 30/4/2020 – which is the date by which all employees need to have received backpayment from the business to the $1,500 before tax per fortnight level, otherwise the business will not receive the JobKeeper Payment. So, below and attached are couple of detailed resources outlining action items and working through a fictional example. But, as its getting real, it may be time to pour yourself a nice Thursday beverage and have a read through the deep dive and payment articles to familiarise yourself again with all of the fine detail…and as always if you have questions let me know. For a deep dive into the JobKeeper Program, including the payments and the flexibility options see; https://acapmag.com.au/2020/04/jobkeeper-wage-subsidy-details-released/ and https://acapmag.com.au/2020/04/jobkeeper-wage-subsidy-program-when-to-pay/
- Cashflow Boot will help businesses meet JobKeeper requirements
From 28/4/2020, and not before, businesses will be able to access a cash flow boost from the ATO in the form of a credit of the amount of PAYG withholding claimed for March. With eligible businesses receiving a minimum of $10,000 from March to June 2020, regardless of their withholding amounts, up to a maximum of $50,000 for the period of March to June 2020.
If the business has been effected by the bushfires automatic deferrals of BAS lodgement are already in place. The business can choose to lodge early to gain access to the cashflow boost, but not before 28/4/2020 (all lodgements before 28/4/2020 will result in no credit).
If the business lodges monthly they will receive a credit of 300% of their March PAYG withholding (W2 on the BAS).
These credits will allow businesses to effectively keep the money they usually would have paid to the ATO as PAYG withholding and use it in their business where they need to. There is no application process required. For more information on eligibility, tax implications and payment dates see; https://www.ato.gov.au/Business/Business-activity-statements-(BAS)/In-detail/Boosting-cash-flow-for-employers/
Q & A with ACAPMA
The questions for today have all centred around the JobKeeper with many businesses now digging into the detail.
The key points are important to review – including that it is not up to the business to decide for which employees it will apply for the JobKeeper – if the business applies and is Approved it is Approved for ALL of the eligible staff – if a staff member is eligible and confirms this with the Employee Nomination Form then the business will need to include the employee on their list.
A lot of questions have revolved around employees whose eligibility has changed over the period – one example was an employee who was working and then on 10/4/2020 went on Paid Parental Leave under the Government program. The eligibility criteria is clear that the employee would have been eligible for the payments from 30/3/2020-9/4/2020, and the payment should me made pro rata for that period, but once on Paid Parental Leave the eligibility is removed. The business will need to ensure that the ATO is notified (with the monthly Declaration Report) that the employee is no longer eligible and should hold aside any payment received for this employee and return it to the ATO as directed.
Practically now all businesses who are hoping to participate in the program should be moving through the action steps as per below and in the attached fictional example;
JobKeeper Action Item List
- Register your interest to participate in the JobKeeper Program – https://www.ato.gov.au/Job-keeper-payment/
- Gather your eligibility information – turnover information for the BAS period now, and the corresponding period in 2019 – that shows the reduction – you should also gather your forecasts for the coming months and the comparisons to turnover last year
- Gather your ATO Business Portal, myGovID and Single Touch Payroll logins and passwords (you will need them to Apply and be Approved)
- Gather your Bank Details (you will need them to Apply and be Approved)
- Generate a List of your Staff as at 1/3/2020
- First Name, Last Name, Tax File Number, Age, Citizen/Permanent Visa Holder Status, Employment Status [permanent, permanent part time, casual – short term = less than 12 months of engagements, casual long term = more than 12 months of engagements]
- see below and attached for an example
- Issue eligible staff with notice that you intend to apply for the JobKeeper Payment for them
- Providing them with a copy of the Employee Nomination Notice that the business has completed the business section of and that the employee will complete the employee section of and return to the business along with a letter stating that “the business is going to apply for the JobKeeper Payment and if approved will ensure that all eligible employees are paid at least the $1,500 before tax per fortnight (backpaid by 30/4/2020 for the period of 30/3/2020-26/4/2020 and paid with the normal payroll thereafter) and explain that to apply the business will need all employees to complete the enclosed Employee Nomination Form and send it back to the business before 20/4/2020”
- A copy of the Employee Nomination Form can be found here; https://www.ato.gov.au/Forms/JobKeeper-payment---employee-nomination-notice/
- Calculate the amount the business would need to pay to employees by 30/4/2020 if approved – the Transitional JobKeeper Backpay amount (see below for steps)
- Review your cash flow and if necessary talk to your bank to ensure that you can pay the Transitional JobKeeper Backpay amount on time (no later than 30/4/2020) and that you can pay the required $1,500 before tax per fortnight for all eligible staff moving forward (remember payment for the JobKeeper will not be received by businesses until at least the first week of May 2020 – so you have to ensure you have enough cash to pay staff until then – after 27/4/2020 if you don’t pay the minimum $1,500 before tax per fortnight you will not get the payment)
- From 20/4/2020:
- Apply for approval to participate in the JobKeeper Program online using the ATO Business Portal and authenticate with myGovID (your Tax Professional can do this for you). This will include providing the Turnover, banking and employee list information as well as other information in an online form
- It is still not clear how this will work, but it is expected that standard applications will receive approval quickly, and those non-standard (trading less than 12 months for example) may take a little longer
IF THE BUSINESS IS APPROVED THEN;
- By 30/4/2020:
- Process Transitional Period Top Up Payments for eligible staff if required
- Review the amount paid to each eligible staff member before tax for each fortnight in the Transition Period (30/3/2020-12/4/2020 and 13/4/2020-26/4/2020)
- If the employee received exactly or more than $1,500 per fortnight
- then there is no further action required to adjust the Transition Period
- If the employee received less than $1,500 per fortnight
- then calculate the difference, this is the JobKeeper Top Up Amount to Backpay
- than total up the information on the tax paid already on the payslip for each of the Transitional Periods, this is the Tax Already Paid
- then calculate the tax to be paid on the BACKPAY by doing the following sum; $384-Tax Already Paid = Tax to be paid on BACKPAY
- then issue a Payslip that shows the item as ‘JobKeeper Top Up BACKPAY’ and adjust the tax to match the amount you calculated as ‘Tax to be paid on BACKPAY’
- If the business chooses to pay the superannuation on the Top Up amount apply superannuation to the amount (this is a choice and not a requirement)
- Process the payment of the Net amount to the employee by no later than 30/4/2020
- On your next Payday (and all paydays thereafter until the end of the program)
- For all pay periods (according to your normal pay cycle) from 27/4/2020: ensure that eligible employees receive at least $1,500 before tax per fortnight.
- Process the hours worked as normal, attracting normal loadings, penalties and allowances. These hours should show on the payslip as normal and the normal superannuation should apply to those hours.
- If the employee has earnt less than the $1,500 before tax per fortnight, then you will need to also add a line item on the payslip that is noted as ‘JobKeeper Top Up’ and top the employees before tax wage up to the $1,500 per fortnight level
- If you are paying weekly this is $750 and the tax should be set at $96
- If you are paying fortnightly this is $1500 and the tax should be set at $192
- Process all payments according to your normal pay cycle – TO BE CLEAR YOU PAY THE FULL $1,500 BEFORE TAX PER FORTNIGHT FROM THE 27/4/2020 THERE IS NO OPTION TO BACKPAY ANY PERIOD FROM 27/4/2020, IF YOU FAIL TO PAY THE FULL AMOUNT YOUR BUSINESS WILL NOT RECEIVE THE PAYMENT FROM THE ATO
- From 4/5/2020:
- Confirm in the ATO Business Portal that you have paid each eligible employee at least $1,500 before tax per fortnight for the period of 30/3/2020-26/4/2020, identifying each employee (either through the Single Touch Payroll prefill or manual entry) await confirmation screen. Payment will be processed after confirmation
- First week of each month:
- Confirm in the ATO Business Portal that you have paid each eligible employee at least $1,500 before tax per fortnight for the period of 30/3/202026/4/2020, identifying each employee (either through the Single Touch Payroll prefill or manual entry) and complete the online Declaration Report Form (which will include questions about actual and projected turnover) await confirmation screen. Payment will be processed after confirmation
- Anytime an employee resigns or is terminated:
- Notify the ATO using the online Declaration Report Form as part of the confirmation process to ensure that you do not end up owing the ATO money
JobKeeper Action List – Worked Example
Please see attached for a fictional Staff Eligibility and Payment List as well as a simple Cash Flow Implication review. As always these fictional examples are instructional, and not advice. If you have any questions please reach out to firstname.lastname@example.org
- XYZ Servo is a single site business that has less than $1b turnover, reports BAS monthly and has suffered a downturn in turnover, due to COVID-19 of 42% in the March 2020 period, compared to the March 2019 period, and is forecasting to continue to see similar levels of reduced turnover into the future. XYZ Servo employs 10 people. 1 Full Time Site Manager, 3 part time staff, and 6 casual staff.
- XYZ Servo has registered for the JobKeeper Program
- XYZ Servo has run its BAS Reports for March 2020 and reprinted the reports for March 2019 and can see there is a clear 42% reduction in turnover. These have been saved ready to enter into the ATO system
- XYZ Servo has created its List of Staff as at 1/3/2020 as attached and has tested the staff eligibility and done the calculations to understand what Backpay will be required for the Transition Period and what payments will be required moving forward
- XYZ Servo has sent all staff letters and the Nomination Forms
- XYZ Servo has noted that it will need a cash flow boost of about $6,000 to ensure that it can meet the backpay deadline of 30/4/2020 and make all of the $1,500 before tax per fortnight payments moving forward, so they have approached their bank for approval for an overdraft. The bank has given them approval but XYZ Servo has decided to wait to activate the facility until they get approval from the ATO
- On 20/4/2020 XYZ Servo will Apply for Approval
- XYZ Servo has done everything it can and now is just waiting for approval – until then it is business as usual.
ACAPMA Consolidated COVID-19 Articles and Resources (updated daily)
- For general information on the situation and the implications for employing staff, including new sections on Payments and Leave, and considerations around business downturn see; https://acapmag.com.au/2020/03/hr-highlight-managing-covid19-risk-in-the-workplace/
- For information and resources on Keeping Customers and Staff Safe instore from a practical standpoint see; https://acapmag.com.au/2020/03/hr-highlight-covid-19-keeping-customers-and-staff-safe/
- For practical guidance on achieving Social Distancing in Retail, including guides and posters see; https://acapmag.com.au/2020/03/safe-distancing-in-retail-maximum-vs-practical-limits-and-communications-to-customers/
- For practical guidance on Roadhouses and the exemptions to allow Dine In for Heavy Vehicle Drivers, including guides and posters see; https://acapmag.com.au/2020/04/states-confirm-roadhouse-open-for-dine-in-for-heavy-vehicle-drivers/
- For information on Boarder Closures see; https://acapmag.com.au/2020/03/border-restrictions-what-you-need-to-know/
BUSINESS RELIEF MEASURES
- For information on the raft of support measures available to businesses, including the Job keeper Wage Subsidy see; https://acapmag.com.au/2020/03/wage-subsidy-what-you-need-to-know/
- For the one stop list of all COVID-19 Business Support Measures, including links and information see the ACAPMA COVID-19 Business Assistance Quick Reference Guide.pdf – ACAPMA Members can request a copy of the Guide by emailing email@example.com .
Email firstname.lastname@example.org and we will get you answers and fold those answers into these consolidated articles
STAY UP TO DATE
Follow ACAPMA on LinkedIn, so you get the daily updates - https://au.linkedin.com/company/australasian-convenience-and-petroleum-marketers-association-acapma-
We look forward to a time when we will not have to send out these daily updates, but for now the situation is changing so rapidly that these updates are seen as necessary to ensure that Members are updated. If you would like to be removed from the update list please reply to this email and request removal.
A fun fact to end today…
The French-language Scrabble World Champion does not speak French…
Which to me is evidence you can be a titled master without being an expert…and that explains a lot of people I see out there 😊
(as we all try to keep our spirits up I will be accepting your jokes and fun facts – prizes to those who bring a joke I haven’t heard before)
Stay safe everyone – long distance hugs and high fives for you all!
Should you require any further information or assistance please do not hesitate to contact me.