JobKeeper Monthly Reporting Requirements

 

Now that May has finished, and if you are eligible – my recommendation is to lodge your monthly reporting for JobKeeper as soon as you can.

Each month, to receive the cash from JobKeeper, you need to process a claim for the JobKeeper payment from the ATO business portal and report some key numbers.

You will need to go to https://bp.ato.gov.au/ (Business Portal ATO) or your accountant can do it on your behalf via their Tax Agent Portal and each month, report a couple of things:

 

Your GST turnover for the previous month
Now that May has finished, you need to work out what your GST turnover is. You can usually find this in Xero or your bookkeeping software.

Your estimated GST for the current month
The ATO is also asking you for the estimate of the following month, or as an example if you’re claiming for May, what is the month of June going to look like for your business.

At the moment, we’re looking for the best guess of what June’s turnover will be. It doesn’t have to be exact and there’s no penalties if it’s way under or over as things are super unpredictable now.

Consider are your employees still eligible
You’ll need to check that all your employees you are claiming for are still eligible. This is still relevant if you have any employees who leave employment (quit or terminate) – also making sure you’ve paid them the minimum $1,500 per fortnight.

So each month confirm the employees that you are claiming for and also confirm each fortnight you are claiming the payment for.

 

Lodge as soon as you can

My recommendation is to lodge the monthly report as soon as you can.

We’ve already seen money starting to hit bank accounts for our clients for April claims (paid in May). So as soon as the month finishes, in the first couple of days of the new month, make sure you get the reporting done.

You will only receive the JobKeeper payments once these reports have been submitted.

If you need help with JobKeeper, book a strategy call with one of our accountants: https://inspire.business/chat/

Legal Options That Can Save Your Business

We spoke with @Danny King from Danny King Legal on our webinar last week about legal options when it comes to dealing with a team during COVID-19.

1 JobKeeper enabled stand down

What we can do is a partial stand down where we shave off the excess wages on top of JobKeeper. For example, if the person is earning $100 an hour, JobKeeper is going to pay them for 7.5 hours in a week ($750 a week). Once you’ve paid that $750, if they’re not doing any work anyway, we can shave off the excess wages if we’re very careful and jump through the right hoops. There’s documentation, consultation and I recommend extreme caution. However, it is possible to save yourself a lot of money on that extra payment over the JobKeeper minimum.

 

2 JobKeeper regarding directions of location of work

We’ve all probably jumped the gun on giving directions about location of work, without having gone through all of the steps that we need to. If you’ve got someone in your team that is jumping up and down because they are not comfortable in their home office or think that going to an alternative location is too far or whatever the problem is, then you should be focusing on dealing with that particular problem. Otherwise, having a consultative approach about where you’re going to have the location of work is probably going to get you over the line.

As an example, our firm moved on the 1st of April. We’ve had a lot of people who are working from home that are starting to dribble back in. I have actually let all of my people make that decision for themselves. Other businesses are having to be a bit more prescriptive about who’s going to work where, and if you are covered by the JobKeeper directions, there’s a special method that makes it a bit easier to do. If you’re not covered by the JobKeeper directions, such as our business, we need to do it under the traditional method of renegotiation of contract, or it might be sitting in this bubble of a reasonable and lawful direction. So, just because there are extra bits that we get for the JobKeeper, doesn’t mean that that’s the only way.

 

3 JobKeeper regarding direction on duties

The direction of duties is about saying, “I don’t have work in what you normally do, but I do have some filing. And so it’d be really useful if the business could have the benefit of your filing skill.”  This is directing the person to do alternative duties. Again, you can do that in normal employment law there are quite a few risks involved in that.

What the JobKeeper direction has done is just de-escalated some of the menace that you would otherwise feel in having this kind of imposition on an employee who might otherwise think, “Hey, you’ve just demoted me. You’re punishing me. Why are you doing this to me?” So, it’s just helping people get perspective.

 

4. JobKeeper Agreement

We can also have agreement, and this isn’t a normal agreement. A JobKeeper agreement requires the other party to act reasonably. Without the JobKeeper, we can still come to an agreement. You can come to an agreement about almost anything. But, it’s in situations where you’ve got a recalcitrant employee on the other side. He or she is digging their heels in. They’ve got a bit of an entitlement complex. They’re not in it for the team. They really don’t care that you’re the entrepreneur with the blood, sweat and tears that have been put into the business. Then they are the ones that the JobKeeper provisions are really going to be useful for because you can make an application to the commissioner to help clear that person as a roadblock.

 

So, all in all, I think that the options that have come out of the JobKeeper, for those of you in receipt of JobKeeper, are really brilliant and there’s so many opportunities here to leverage this very special situation that we’re in.

 

Webinar Replay

You can watch the full webinar replay here: https://businessreliefpackage.com/

Should You Break Out Of Your Fixed Interest Rate?

“Variable rates are significantly lower than they were a year or two ago, which means that if I’m on a fixed rate of 4%, and I see variable rates in the 2s now, I’ve got this feeling I want to cancel my fixed rate and switch to a variable rate to pay much less interest. Is it a good idea to break our fixed rate and go on a variable rate?”

 

On a recent webinar, here’s what Inspire’s mortgage broker, @ColinO’Loughlin said –

Generally, to get your fixed rate break costs, you’ll need to talk to your existing lender. You can sometimes provide us with an authority to find out what those break costs are for you. However, with these rebates at the moment to move to another bank, it can soak up a majority of those costs. It will also vary on how much you’ve borrowed and the rate you’ve locked in at that point of time.

So, if you’ve locked your fixed rate for three years, and you’ve only been there for six months, we work out the interest of what you would earn with today’s market, multiply that over a two and half year period and compare it to what you’re earning now. That ultimately will give us what your savings will be versus the costs to break your fixed rate.

This is a case-by-case basis, but more times than not, you’re going to see massive savings on the interest and rebate front and will make sense to potentially cancel your fixed rate at this point in time.

It also varies from bank to bank. It’s just a phone call away saying, “Hey, look, I’m interested in knowing if I was to break my fixed rate today, what would that cost be?” And they will provide you with a figure over the phone. Send that figure to us, we’ll do the math for you and let you know whether it’s beneficial. We’ll weigh everything up and what that looks like from a cash flow point of view moving forward.

 

If you need help with JobKeeper or need to speak to an Accountant, book a strategy call with one of our accountants: https://calendly.com/inspireca/strategycall

 

The Employee Consultation Process – Is not just about ticking boxes

Natasha Hawker is the director and founder of Employee Matters, author of the book “From Fire to Hire & Everything in Between” and host of the HR Heroes Podcast.

Here’s what she said on the webinar last week –

The employee consultation process under the temporary amendments requires a three-day consultation process.

Consultation is about engaging with your employees, notifying them of your intention to implement a JobKeeper directional stand down and you’re actually inviting them to consult on the change.

During those three days, your employees might have suggestions or feedback for you. You must consider their point of view, feedback or suggestions prior to implementing the JobKeeper directional stand down.

While consultation is a legal requirement, the way you communicate with your employees and deliver the process can truly make a difference to your results. And if you’re not engaging with them on an emotional level – getting their input and suggestions – you’re missing a huge opportunity to take your employees on a journey. And that’s not just a journey for them, that’s a journey into the future as well.

So let’s face it, I believe your team is critical to how quickly you’re going to rebound from this crisis. You want them on the bus with you and not off the bus. Consultation encourages cooperation, engagement and has countless benefits around increased productivity and engagement. It’s much more than a tick the box option here.

With our clients, we’ve been providing two letters as part of the implementation on the JobKeeper related stand down. Providing clear directions on how to capture all of those conversations, suggestions and responses that you have with your employees as part of that implementation process. And the documentation – let me really emphasise this – this is all about compliance and covering your backside. It shows you have undertaken a process, you have captured the outcomes, the changes, and it forms part of your defence should a disgruntled employee make a claim against you.

 

Find Natasha on https://www.natashahawker.com/
💻 Check out Employee Matters – https://www.employeematters.com.au/

Watch the full recording at https://businessreliefpackage.com/

Listen Now! HR Heroes Podcast: JobKeeper Scheme – Part 2 – analysis & the reality from a legal, accounting & HR https://podcasts.apple.com/au/podcast/jobkeeper-scheme-part-2-analysis-reality-from-legal/id1507070881?i=1000473083336&utm_content=129970154&utm_medium=social&utm_source=facebook&hss_channel=fbp-102900004639787

 

 

Mind-Blowing Bank Offers Available Right Now!

Here’s what Inspire’s mortgage broker, Colin O’Loughlin ran us through on a recent webinar –

Right before we jumped on this webinar I checked one of the recent bank’s offers, and it was at a two-year fixed rate of 2.09% – which is absolutely incredible.

Compared to what you’re paying at the moment, that might be a huge difference – take for example a 1% interest rate saving, on a $500,000 loan. That’s five grand a year in interest savings each year – that’s cash back in your pocket.

 

The cash back rebates of up to $4,000

I think everyone can imagine how much an extra $4,000 in their pockets would come in handy right now. Generally speaking, we’re looking at when a client with a variable rate loan is looking to pick up and move to one of these lenders that are offering the cash back rebate.

Just consider your costs to move though – I would say that your total discharge costs (including government fees) will range anywhere between $700 and $800. This means, out of the $4,000, you’re actually only going to hold onto anywhere between $3,200 and $3,300 in your pocket.  The charges can vary bank to bank, and are based on your personal circumstances.

Depending on how much your loan amount is, the rebate can be potentially 1 to 2 month’s worth of payments that you’ve stored away and could pay during this tough time.

There are a few lenders that are doing it and are ranging from $2,000 to $4,000. There’s some that are still doing different sets of points on credit cards, if that’s what you’re after too.

Whenever we’re going through this process, it’s not a matter of, “Hey, we’re going to get you $3,200 and then we refinance you on a worse rate”.  As mortgage brokers, we have a duty of care to go through how things look like for you right now, what interest that you’re paying, and we want to make sure that we’re getting you into a better situation.

So, the $4,000 is absolutely amazing, but the end goal is actually, “Hey, guess what? You’re on 3%, and we’re going to give you a rate of 2.09%.” That’s the real pickup, because that’s the interest saver and it compounds year, after year, after year.

 

 

JobKeeper Eligibility Update

 

The ATO wants to make sure you have done some research from an eligibility perspective, documenting why you believe you are eligible.

The ATO have said that any attempts to defraud or fiddle with the numbers so that your business becomes eligible won’t be taken lightly and will take firm action if they believe you’ve done this.

On the other hand, let’s say you’re estimating your eligibility for the June quarter and instead of being 35% downturn, you’re only 28% downturn, the ATO will ask you to document why you estimated the original downturn and what happened to make it only 28%.

Now let’s say you turn out to be ineligible but close to eligibility (like the case of 28% downturn, not 30%). We’ve seen guidance that the ATO might consider your JobKeeper payments are ok to go through anyway. If you’ve legitimately tried to do the right thing and it happens that you have just missed out, so technically not eligible, they might let you keep the payments anyway. We’ll know more as the ATO releases guidance.

 

If you need help with JobKeeper book a strategy call with one of our accountants: https://calendly.com/inspireca/strategycall

How To Get The Best Out Of Your Team During COVID-19

I had the pleasure of joining Natasha Hawker on a webinar last week around the topic of JobKeeper. Natasha is an employee expert and founder of Employee Matters. Her biggest piece of advice right now is to communicate!

Here’s what she said –

This should be done on a frequent basis with empathy and care. We are going through something that we’ve never experienced before. Keep your team up to date in a dynamic and constantly changing environment. If you don’t know the answer, it’s okay to say, “I actually don’t know the answer.”

Make sure that everyone has a framework of the temporary and the new working environment. For example, you have an employee who has a JobKeeper direction, such as a change of duties, now they’re going to be doing some filing for you.

I would suggest the following framework to structure that conversation;

• Pinpoint exactly what you want them to accomplish;
• Create a measurement or some KPIs for monitoring progress to give them that qualitative and that quantitative feedback;
• Provide feedback, then reward and recognise them and;
• Keep checking in to find out how they’re going

And you never know, you might find out they really like what they’re doing in the new circumstances or they may find something in the process that you never knew, could be done better or see opportunities that you’re not seeing.

Communication is key. You have to massively increase the frequency of your conversation with your team. Just because they’re out of sight doesn’t mean they’re out of mind.

Natasha Hawker
https://www.natashahawker.com/

Employee Matters
https://www.employeematters.com.au/
https://www.facebook.com/Employeematters
https://www.linkedin.com/company/empl…

Listen Now! HR Hero Podcast

HR HeroesJobKeeper Scheme – Part 2 – analysis & the reality from a legal, accounting & HR

 

 

 

 

 

 

If you need help with JobKeeper book a strategy call with one of our accountants: https://calendly.com/inspireca/strategycall

Don’t Make This Big Mistake When you apply for JobKeeper

“If accountants are advising to add directors on the payroll, is it wise to get their instructions in writing?” 

Here’s what we suggest. We received an email from the Tax Practitioners Board regarding the response to COVID-19 saying,

“Some advisers may be grappling with the tax consequences associated with the stimulus payment and wondering what will attract our attention. We also know that some businesses are already making changes to their business structures and employment arrangement following the stimulus announcements. 

We ask that tax agents and businesses be mindful that it is not acceptable to backdate or artificially change your business structure or employment arrangements including changing the characteristics of payments in order to obtain a benefit or payment that would otherwise not have been paid. The Tax Practitioners Board and the ATO will take firm and swift action should this be the case.”

This email could not be more black and white. What is clear is that the ATO will come after you should you wish to change things in terms of your employment status on the payroll, changing from trusts to companies, or take your drawings as salaries.

The ATO can easily find this information by simply looking at the differences in your payroll this year versus last year. If the accountant is saying you can do it, that’s their own tax agent registration at risk. We advise a strong “no.”

If there is a downturn you are experiencing but not sure what you can receive in the JobKeeper payment, talk to an accountant who has read and been across everything JobKeeper. You don’t want to be caught in the crosshairs of the ATO.

If you need help with JobKeeper book a strategy call with one of our accountants: https://calendly.com/inspireca/strategycall

 

Monthly Reporting Requirements for JobKeeper

Each month, to receive the cash from JobKeeper, you need to claim the JobKeeper payment from the ATO business portal and report some key numbers.

You will need to go to BP.ATO.gov.au (Business Portal ATO) or your accountant can do it via their Tax Agent Portal and each month, report a couple of things:

The first one is your GST turnover of the previous month. April is the first full month we claim. Now that April has finished, you need to know what your GST turnover is. The ATO is also asking you for the estimate of the following month, or if you’re claiming for April, what is the month of May going to look like for your business. At the moment, we’re looking for the best guess of what May’s turnover will be. It doesn’t have to be exact and there’s no penalties if it’s way under or over. However, each month, you do need to report your actual turnover for the month just finished.

Secondly, what you also need to do is consider, “Are your eligible JobKeeper employees still eligible?” This is still relevant if you have any employees who leave employment (quit or terminate). So each month you’ll confirm the employees that you are claiming for and also confirm each fortnight you are claiming the payment for.

My recommendation is to lodge the monthly report as soon as you can.

We’ve already seen money starting to hit bank accounts for our clients. So as soon as the month finishes, in the first couple of days of the new month, make sure you get the reporting done. You will only receive the JobKeeper payments once these reports have been submitted.

If you need help with JobKeeper book a strategy call with one of our accountants: https://calendly.com/inspireca/strategycall

YFSB Interview

Owner and managing director of Wyntec – ideal technology solutions.

Married to Christy  since 2001, 6 years old daughter, Arwin.

Started company in 2005, around the time of the GFC and had a 6 month old daughter. – ‘Insane, is the word I would use to describe it’

What was your reasoning to start up your company?

I went into it with an inkling that things could be done better in the area of IT – thats why I started my own business. I have come from a background of working in IT for 15 years for big corporates but…

my passion is to help and make things run better as well as just wanting to do something different.

My parents have always been small business owners, so it’s in the blood.

In simple terms, what do you do?

Stress free IT – I fix peoples computers and I take the pressure off people as IT frustrates the heck out of most people.

People rely on IT so heavily – the more they rely on it and the more it becomes supposedly intuitive the more frustrating it gets particularly when it doesn’t do what you want it to do. So we take the frustration off our customers by fixing their computers – we remove that stress!

What makes a good husband? / working for myself as apposed to working for a company…

My role is to be a provider.

The same principle for both family and business applies;

• be there,
• be available
• be flexible.

We share everything as she works full time too.

Why start your own small business?

The driving force for me in starting the business was about having flexibility. If I need to drop everything and go to my daughters ‘fathers day parade’ at school then I don’t have to worry about trying to get that time off work, I can just go.

family rhythms – school morning drop off is my thing with my daughter and then I’m always home before 6 for dinner and story time.

weekends are generally family.

I try to do more strategic things at night after my daughter has gone to bed as there are less distractions.

What is your one piece of advice to manage both worlds Business & Family?

Make time!

Lack of time is not an excuse… You don’t have to be available 24/7 for your clients, yes, you are your small business, but you can block it out even for 2 hrs a day. My 2 hours is spending time with my family over dinner and then get back to whatever needs to be done after but its about making time – Blocking it out in the calendar.