1) Employer affected by Covid-19 with multiple employees
Adam owns a business whose turnover has declined by more than 30% as a result of the downturn due to the Coronavirus. The business had the following three employees as at 1 March 2020:
• Anne, who is a permanent full-time employee and who continues to work in the business earning a gross salary of $3,000 per fortnight.
• Nick, who is a permanent part-time employee and who continues to work in the business earning a gross salary of $1,000 per fortnight.
• Fred, who was recently stood down from the business without pay.
Adam is eligible to receive the JobKeeper Payment for each employee of $1,500 per fortnight (before tax), for a maximum period of six months (which would be paid monthly in arrears).
The JobKeeper Payment would provide the following benefits for the business and its employees:
(a) The business continues to pay Anne her full-time gross salary of $3,000 per fortnight, as well as superannuation guarantee support on this income. In this case, the $1,500 per fortnight JobKeeper Payment effectively partly subsidises the cost of Anne’s salary.
(b) The business continues to pay Nick his $1,000 gross fortnightly salary and an additional $500 gross amount per fortnight, resulting in a total gross fortnightly salary of $1,500. In this case, the JobKeeper Payment fully subsidises the cost of Nick’s salary.
The business must continue to provide Nick with superannuation guarantee support on the $1,000 fortnightly salary amount, but has the option of choosing to pay superannuation on the additional $500 gross amount paid to Nick under the JobKeeper Payment scheme.
(c) The business must start paying Fred a gross salary of $1,500 per fortnight, which is fully subsidised by the JobKeeper Payment. The business has the option of choosing to pay superannuation on this amount paid to Fred under the JobKeeper Payment scheme. If Fred commenced receiving any Centrelink support (e.g., JobSeeker Payment), he will need to advise Centrelink of his JobKeeper payment.
2) Self-employed affected by Covid-19 with no employees
Melissa is a sole trader running a florist without any employees.
The economic downturn due to the Coronavirus has adversely affected Melissa’s business and she expects that her business turnover will fall by more than 30% compared to a typical month one year ago (i.e., in 2019).
On this basis, Melissa will be able to apply for the JobKeeper Payment and would receive $1,500 per fortnight (before tax), which will be paid to her on a monthly basis in arrears.
Should you have any questions or wish to discuss the Stimulus packages please send your email to firstname.lastname@example.org or ph 08 6263 4466