JobKeeper Scenarios

How to process different JobKeeper scenarios in Sybiz Visipay

Last updated: 18/09/2020

The following information is based on potential scenarios our customers may experience when managing JobKeeper payments with Sybiz Visipay payroll. You can find other generalised information and frequently asked questions about JobKeeper on our FAQs page. The ATO is continuing to release additional information regarding JobKeeper and STP reporting which should be considered in conjunction with the information on this page.

Please note: This content should only be considered general in nature. Businesses and individuals should seek personalised advice about eligibility and suitability.

How do I set up JobKeeper Allowance pay items?
How do I process JobKeeper for different employees?
I've made a mistake, how can I fix it?


 

How do I set up JobKeeper Allowance pay items?

Allowance pay items are required for JobKeeper because they are the only option that could be accommodated in the current design of Single Touch Payroll. This section runs through how to set up JobKeeper Allowances correctly. You may need to refer to the JobKeeper Fortnight table on our FAQs page in conjunction with these notes. If you have incorrectly set up any Allowances, go to the I've made a mistake, how can I fix it? section. If you use the Payroll Journal function in Sybiz Visipay you will need to update your configuration to include any new pay items.
 

Setting up Allowances in Sybiz Visipay

JOBKEEPER-START-FNXX
This is the most important allowance as it triggers the reimbursement. The JOBKEEPER-START-FNXX Allowance must be processed at least once per eligible employee using the correct JobKeeper fortnight period to replace the XX (for example, if the employee was eligible from the first JobKeeper fortnight, use JOBKEEPER-START-FN01). The description field in the Allowance must be exact and the rate must be set to 1 cent to allow this to be reported through STP. You can offset this 1 cent by including an additional negative 1 cent allowance or a postive 1 cent deduction pay item.

For example:


Important information about JOBKEEPER-START-FNXX Allowances:

  • For most eligible employees this item will only be required once for the duration of JobKeeper.

  • It may be required more than once in cases where an employee is temporarily ineligible, in which case it would be used again upon their return to eligibility.

  • Do not process for employees who are not eligible.

  • Do not process the Allowance again for the start of a JobKeeper extension period.

  • Do not process the Allowance again in new financial year, it will carry forward.

  • Do not recycle the Allowance (if you need another FNXX create a new Allowance).

  • Do not pre-process in advance of the correct JobKeeper fortnight (the ATO will ignore it).

  • For employees eligible from 30 March 2020 use JOBKEEPER-START-FN01.

  • For other eligible employees the fortnight number must correspond to the JobKeeper fortnight in which they are first eligible.

  • Must always use FN, irrespective of pay frequency (do not use MN or WK for monthly or weekly pay frequencies, the Allowance description must be exact).



JOBKEEPER-FINISH-FNXX
The JOBKEEPER-FINISH-FNXX Allowance is only required if an eligible employee is no longer eligible (for example, an employee is taking Government Paid Parental Leave or is off work on WorkCover or has been terminated). If used, this Allowance should be used with respect to the first JobKeeper fortnight for which the employee is no longer eligible. This allowance can be used in the employees' final pay or a separate pay during the actual JobKeeper fortnight.

You do not need to use this Allowance at the end of the JobKeeper program or at the end of financial year.

The description field in the Allowance must be exact and the rate must be set to 1 cent to allow this to be reported through STP. You can offset this 1 cent by including an additional negative 1 cent allowance or positive 1 cent deduction pay item.

For example:

Important information about JOBKEEPER-FINISH-FNXX Allowances:

  • This Allowance is only required if an eligible employee is no longer eligible, or to fix a mistake.

  • Do not process the Allowance at the end of financial year (unless the employee is no longer eligible).

  • Do not recycle the Allowance (if you need another FNXX create a new Allowance).

  • Do not pre-process in advance of the correct JobKeeper fortnight by more than one fortnight (the ATO will ignore it).

  • It is not required for employees who are eligible for the duration of JobKeeper.

  • Must always use FN, irrespective of pay frequency (do not use MN or WK for monthly or weekly pay frequencies, the Allowance description must be exact).


JK-TIERX
This Allowance is required for any JobKeeper employees who are continuing to be or have become eligible after 27 September 2020. For example, if an employee was eligible for JobKeeper from 15 July 2020 and will continue to be eligible in the extension period beyond 27 September 2020, they will require a JK-TIERX Allowance to be processed in the first fortnight of the extension period.

There are two tiers, JK-TIER1 and JK-TIER2, and employees will require at least one of the JK-TIERX Allowances to be processed at least once. See our FAQs for more information about calculating Tiers for employees.

The description field in the Allowance must be exact and the rate must be set to 1 cent to allow this to be reported through STP. You can offset this 1 cent by including an additional negative 1 cent allowance or positive 1 cent deduction pay item.


For example:


 

Important information about JOBKEEPER-TOPUP Allowance:

  • Exact description is required

  • This pay item indicates the employee JobKeeper rate for payments beyond 27 September 2020.

  • All employees who remain eligible will require their relevant JK-TIERX Allowance to be processed during the first fortnight of eligibility in the extension period.

  • Employers must notify employees which tier they are eligible for within 7 days of reporting to the ATO.

     

 JOBKEEPER-TOPUP
This Allowance is used for employees that would otherwise receive less than the relevatn tier amount per fortnight or equivalent. You can create different versions of this Allowance (for example, with different rates such as $3,250 for monthly stood down employees) but the description must always be JOBKEEPER-TOPUP.

Do not use this pay item for employees that continue to receive normal pay greater than their relevant tier amount per fortnight or equivalent.

For example:

 


 

Important information about JOBKEEPER-TOPUP Allowance:

  • Exact description is required to enable tax return pre-fill.

  • This pay item does not drive reimbursement.

  • Any employee receiving this pay item must have also received a JOBKEEPER-START-FNXX pay item.

 

Optional offset Allowance
You have the option to offset any 1 cent Allowance amounts in Sybiz Visipay by setting up a negative 1 cent Allowance. The purpose of the offset Allowance is simply saving an extra one cent from being transferred in the bank file. Ensure you have unticked the ‘Include on payment summaries’ check box. As it is not reported you can use any description.

For example:


The offset Allowance can be set up as a Deduction instead if preferred.

 

 

How do I process JobKeeper for different employees?

This section runs through various JobKeeper pay scenarios in Sybiz Visipay. The correct Allowances must be set up as per the instructions above.



A newly eligible employee earns more than the relevant amount for their payment tier per fortnight

If your employee is still working and earning more than the relevant amount for their tier per fortnight, add the employees’ regular hours and the relevant JOBKEEPER-START-FNXX allowance with a 1 cent rate. You can offset this 1 cent by including a negative 1 cent allowance. The correct START and JK-TIER allowances need to be included and reported via STP before the end of the JobKeeper fortnight period for which you are paying.

For example, this employees first pay may look like:

If they are still earning more than the relevant amount per fortnight, their next pay may look like

The relevant JOBKEEPER-START-FNXX allowance and JK-TIERX has already been reported in the first pay and no additional top up is required. If the employee or employer becomes eligible later in the JobKeeper program, use the correct JOBKEEPER-START-FNXX Allowance that corresponds with the JobKeeper fortnight payments are to start from, not FN14.
 

A newly eligible employee earns less than the relevant amount for their payment tier per fortnight

If your employee is still working but earns less than the relevant amount for their payment tier per fortnight, add the employees regular hours, the JOBKEEPER-TOPUP with the remaining amount (topping up their the relevant maximum amount) and the relevant JOBKEEPER-START-FNXX and JK-TIERX allowances, each with a 1 cent rate. You can offset this 1 cent by including a negative 1 cent allowance. The correct START and JK-TIER allowances need to be included and reported via STP before the end of the JobKeeper fortnight period for which you are paying.

For example, this employees first pay may look like:

If they are still earning less than the $750 per fortnight, their next pay may look like:

The relevant JOBKEEPER-START-FNXX and JK-TIERX allowances were reported and now only top ups to the fulfil the tier amount they are entitled to per fortnight are required. If the employee or employer becomes eligible later in the JobKeeper program, use the correct JOBKEEPER-START-FNXX Allowance that corresponds with the JobKeeper fortnight payments are to start from, not FN14.
 

Employee has been stood down

If your employee has been stood down and is no longer able to work you will need to add the employees regular hours at a zero rate, the JOBKEEPER-TOPUP for the full JobKeeper amount and the relevant JOBKEEPER-START-FNXX and JK-TIERX allowances, each with a 1 cent rate. You can offset this 1 cent by including a negative 1 cent allowance. The correct START and JK-TIER allowances need to be included and reported via STP before the end of the JobKeeper fortnight period for which you are paying.

For example, this employees first pay may look like:

If the employee remains stood down and is only receiving the JobKeeper top up, their next pay may look like:

If the employee or employer becomes eligible later in the JobKeeper program, use the correct JOBKEEPER-START-FNXX Allowance that corresponds with the JobKeeper fortnight payments are to start from, not FN01.

Stood down employees are entitled to accrue leave under Fair Work. Please check your local state/territory rules regarding Long Service Leave.

 

Employee has gone on/returned from Paid Parental Leave/Work Cover/is temporarily ineligible

Employees can become temporarily ineligible in cases such as government Paid Parental Leave and Dad & Partner Leave, and whilst off work being paid workers compensation. In such cases the JOBKEEPER-FINISH-FNXX needs to be reported relative to the first JobKeeper fortnight that you will not be claiming the subsidy for that employee. Similarly, when the employee returns another JOBKEEPER-START-FNXX would need to be reported relative to the first JobKeeper fortnight from which you will resume your claim for the subsidy. You cannot pay the JOBKEEPER-FINISH-FNXX item more than one fortnight in advance.
 

Employee is no longer eligible

If the employee becomes ineligible part way through the JobKeeper program, due to a change in circumstances or termination, the JOBKEEPER-FINISH-FNXX Allowance should be processed in a separate pay after their final JobKeeper payment.

However, if necessary, the ATO have confirmed that JOBKEEPER-FINISH-FNXX can be processed one (but never more than one) JobKeeper fortnight in advance if required, to allow it to be a part of an employee's final pay (in which case the two examples below could be combined in the first pay). 

Their final eligible JobKeeper pay may look like this:


Then, the process after their final JobKeeper payment may look like this:


If the employee becomes ineligible later in the JobKeeper program, use the correct JOBKEEPER-FINISH-FNXX Allowance that corresponds with the JobKeeper fortnight that payments have ceased. If there are further pays to process for that period, you can process the same as the above example with a normal pay line and remember to report the update through STP before the end of the end of the relevant calendar month.
 

I am not continuing JobKeeper but my pay day falls after 27 September for the period ending on or before 27 September. How do I pay my employees and at what rate?

If you are not eligible to continue JobKeeper beyond 27 September 2020, you are only eligible to receive reimbursement for JobKeeper fortnights up to and including the 13th fortnight (14/09/2020-27/09/2020). Any payments made after this date will count as being in the next (14th) JobKeeper fortnight.

Therefore, any employers not continuing JobKeeper must process and pay their final 13th JobKeeper fortnight pay for the preceding period by 27 September, fulfilling the $1,500/fortnight requirement.
 

Business is no longer eligible after 27 September 2020

If a business is not continuing JobKeeper beyond 27 September 202 (i.e. the end of the initial JobKeeper period) you must not to process a JOBKEEPER-FINISH-FN13 allowance for your employees. 

 

I've made a mistake, how can I fix it?

This section runs through various scenarios in Sybiz Visipay where a mistake may have occured and how to rectify these correctly.
 

I incorrectly used the wrong JOBKEEPER-START-FNXX Allowance

Do not rename the description of the Allowance, create a new Allowance. Then cancel out the incorrect Allowance for the relevant employee by submitting a JOBKEEPER-FINISH-FNXX for the same period and submitting the correct JOBKEEPER-START-FNXX as below.

In this example JOBKEEPER-START-FN02 was incorrectly used (not shown) instead of JOBKEEPER-START-FN01. A new Allowance has been created with description JOBKEEPER-START-FN01.
JOBKEEPER-FINISH-FN02 will negate the JOBKEEPER-START-FN02. If there are no further pays to process for that period, you can process the same as the below example without normal pay line and remember to report the update through STP before the end of the end of the relevant calendar month.



 

I processed a JOBKEEPER-START-FNXX Allowance twice or multiple times for an employee

The ATO has recommended a value of 1 cent for JOBKEEPER-START-FNXX Allowances.

As STP Allowances are year to date, processing the same JOBKEEPER-START-FNXX multiple times in Sybiz Visipay against a single employee will result in a total value more than 1 cent. You can check the year to date figures in the Sybiz Employer Portal.

If the JOBKEEPER-START-FNXX Allowance is more than 1 cent against an employee’s records, you should process a correction or a negative allowance to bring the value down to no more than 1 cent. For example, an employee’s first JobKeeper pay has been incorrectly processed with 2 JOBKEEPER-START-FN14 Allowances, bringing the year to date total to 2 cents.

This can be corrected in a following pay with a negative amount for the JOBKEEPER-START-FN14 Allowance to bring it to a year to date amount of no more than 1 cent. In this case, only a negative 1 cent amount is required.

 

 

I incorrectly used Earnings instead of Allowance

Users are able to cancel out an incorrectly used Earning pay item and resolve it by including the correct Allowance as demonstrated in the example below. Note that assuming that there are no further pays for April and 100% top up, we need to negate the Earnings items (EARN*) and introduce the Allowances (JK*).



 

I processed the wrong JOBKEEPER-FINISH-FNXX for an employee
If you have processed a pay with the incorrect FINISH-FNXX code, this can be remedied by processing that same FINISH-FNXX allowance with a rate of -0.01 and then processing the correct FINISH-FNXX allowance with a rate of 0.01.

It is important to note that when an employee becomes no longer eligible for JobKeeper, you must include a JOBKEEPER-FINISH-FNXX allowance indicating the first fortnight in which you will no longer be claiming JobKeeper for that employee.

For example, if an employee is due to finish receiving JobKeeper on 19 June 2020 (within fortnight FN06) and their final pay was processed on that date, you should include the allowance JOBKEEPER-FINISH-FN07. If they have been incorrectly processed with the allowance JOBKEEPER-FINISH-FN06, simply process the allowance JOBKEEPER-FINISH-FN06 again with a rate of -0.01. You can then process the JOBKEEPER-FINISH-FN07 with a rate of 0.01 to correctly indicate the employee is no longer eligible.
 

 

I forgot to process JOBKEEPER-FINISH-FNXX for an employee
How you remedy this depends on whether you have already submitted your Business Monthly Declaration or not.

If you have simply forgotten to process a FINISH-FNXX for a relevant employee earlier in the current month, then you should process the correct FINISH-FNXX allowance as soon as possible. If you have since submitted your Business Monthly Declaration and should have processed a FINISH-FNXX for an employee in a previous month, you will need to contact the Australian Taxation Office.
 

 

I processed the wrong JK-TIERX for an employee
If you have incorrectly calculated an employee’s hours for the reference period, or otherwise processed the wrong JK-TIERX allowance for an employee, it can be reversed.
 
Simply process a negative one cent amount JK-TIERX allowance and then process the correct JK-TIERX allowance.
 
For example, an employer has processed JK-TIER1 for an employee who is only eligible for JK-TIER2. The employer should process an allowance with Description JK-TIER1 with an amount of -0.0100, then process another allowance with the Description JK-TIER2 as soon as possible to correct the error.


 

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