Guide: Processing monthly JobKeeper payments

How it works

On 30 March 2020, the Australian Federal Government announced the JobKeeper payment package to support affected businesses and their employees through the COVID-19 pandemic. Eligible business will receive $1,500 per fortnight per eligible employees for six months.

Employees, earning more than $1,500 per fortnight; or the equivalent of $3000 per month for employees on a monthly pay cycle; will continue to receive their normal wage or salary entitlement, with no change required when processing a pay run.

Employees earning less than $1,500 per fortnight will require a top-up amount to ensure they receive at least $1,500 per fortnight, or the equivalent of $3000 per month for employees on a monthly pay cycle. You need to report this top up amount to the ATO under a different pay category to differentiate between the JobKeeper Payment and the employee’s gross earnings.

Warning

As you are paying your employees monthly, each month contains two fortnights, except for August, which contains three fortnights. This means you will need to pay three JobKeeper payment fortnights for this month i.e. $4,500 instead of the usual $3,000.

Important

The payroll platform now allows you to select the JobKeeper payment top-up, starting fortnight and ending fortnight right from within the pay run. If it is your first time creating each of these three options, the platform will create a pay category that has the correct configuration as required by the ATO.

Availability

Payroll Plan:   Standard   Premium

What you need to do

The ATO requires that an organisation show when the JobKeeper payment started for an eligible employee, and when the payment ended. 

The ATO requires you to report when the JobKeeper payment began using the starting fortnightly process, as it is the name on the pay category that is informing the ATO, not the date and/on or length of your reporting pay period.

Important

Not every employee will become eligible or start receiving the JobKeeper payment in the same fortnight. To account for this, the ATO have created a unique value to each fortnight to record when an employee began receiving the JobKeeper payment and when it ended.

There are three steps that an administrator needs to complete when processing the JobKeeper payment for employees on a monthly pay schedule. An administrator needs to complete these actions on the Employment Hero Payroll platform. The three steps are:

Step 1: Starting the JobKeeper payment

If an eligible employee is receiving their first JobKeeper payment, you need to apply a starting fortnight when processing their first JobKeeper top up. This notifies the ATO of which fortnight an employee started receiving the JobKeeper payment. Even though you are paying your employee monthly, it is the name on the pay category that is informing the ATO, not the date and/on or length of your reporting pay period.

Warning

Notifying the ATO of which fortnight an employee started receiving the JobKeeper payment is compulsory. You only need to report the starting fortnight once, and you include it within the employees first top-up payment.

The steps on how to undertake this are:

  1. Log into Employment Hero Payroll.
  2. Click the Pay Run menu.
  3. Click the New Pay Run button.
    JobKeeper_1.jpg
  4. In the Pay Schedule field select the Monthly option
  5. Complete the following fields:
    • Pay period ending.
    • Date pay run will be paid.
    • Manually add employees to this pay run.
    • Create pay run with empty pay.
    • Import timesheets:
      • Timesheets for this pay period.
      • All unpaid timesheets.
      • Don't import timesheets.
  6. Click the Create button.
    JobKeeper_2.jpg

    Important

    For information on how to add an employee to a pay run, refer to the following article.

  7. Click on the employee's name who is eligible to receive the JobKeeper payment.
    JobKeeper_4.jpg
  8. Click the Actions button.
  9. Click the Add JobKeeper Payment button.
    JobKeeper_5.jpg
  10. In the JobKeeper Options field select the JobKeeper start option.
  11. In the JobKeeper Period field select the starting fortnight.

    Important

    For further information on the JobKeeper starting fortnights refer to the following guide section Reference table: Starting fortnight.

  12. Click the Add another option button.
    JobKeeper_6.jpg
  13. In the JobKeeper Options field select the JobKeeper top-up option.
  14. In the Top-up Amount field, enter the top up amount for the employee.

    Important

    The JobKeeper payment top up rate is the difference between the employees normal monthly earnings rate and the $3,000 JobKeeper payment i.e. if the employee earns $2,800 a month, they will need a top up rate of $200.

  15. Click the Finished button
    JobKeeper_7.jpg
  16. Click the Save button.

    Important

    Repeat instructional steps 7 to 16 for each employee that needs to receive the JobKeeper payment. Once you have entered this information for all required employees proceed to instructional step 17.

    JobKeeper_8.jpg
  17. Click the Finalise Pay Run button
    Jobkeeper_12.jpg
  18. Complete the following fields:
    • Date paid.
    • Create pay event:
      • Create pay event manually at a later date.
      • Create pay even immediately.
  19. Click the Finalise button.
    JobKeeper_13.jpg
Step 2: Continuing the JobKeeper payment

Once you record a starting fortnight for your employee, each successive pay run only needs to include the top up amount, until their last JobKeeper payment.

The steps on how to undertake this are:

  1. Log into Employment Hero Payroll.
  2. Click the Pay Run menu.
  3. Click the New Pay Run button.
    JobKeeper_1.jpg
  4. In the Pay Schedule field select the Monthly option
  5. Complete the following fields:
    • Pay period ending.
    • Date pay run will be paid.
    • Manually add employees to this pay run.
    • Create pay run with empty pay.
    • Import timesheets:
      • Timesheets for this pay period.
      • All unpaid timesheets.
      • Don't import timesheets.
  6. Click the Create button.
    JobKeeper_2.jpg

    Important

    For information on how to add an employee to a pay run, refer to the following article.

  7. Click on the employee's name who is eligible for the JobKeeper top up payment.
    JobKeeper_4.jpg
  8. Click the Actions button.
  9. Click the Add JobKeeper Payment button.
    JobKeeper_5.jpg
  10. In the JobKeeper Options field, select the JobKeeper Top-up option.
  11. In the Top-up Amount field, enter the top up amount for the employee.

    Important

    The JobKeeper payment top up rate is the difference between the employees normal monthly earnings rate and the $3,000 JobKeeper payment i.e. if the employee earns $2,800 a month, they will need a top up rate of $200.

  12. Click the Finished button.
    JobKeeper_3.jpg
  13. Click the Save button.
    JopKeeper_14.jpg
  14. Click the Finalise Pay Run button.
    Jobkeeper_12.jpg
  15. Complete the following fields:
    • Date paid.
    • Create pay event:
      • Create pay event manually at a later date.
      • Create pay even immediately.
  16. Click the Finalise button.
    JobKeeper_13.jpg
Step 3: Applying a finishing fortnight date

If an eligible employee is receiving their last JobKeeper payment or they are no longer eligible, you need to include a finishing fortnight to notify the ATO of which fortnight an employee stopped receiving their JobKeeper payment. Even though you are paying your employee monthly, it is the name on the pay category that is informing the ATO, not the date and/on or length of your reporting pay period.

Warning

Notifying the ATO of which fortnight an employee finished receiving the JobKeeper payment is compulsory. You only need to report a finishing fortnight once and you include it within the employees last top-up payment.

The steps on how to undertake this are:

  1. Log into Employment Hero Payroll.
  2. Click the Pay Run menu.
  3. Click the New Pay Run button.
    JobKeeper_1.jpg
  4. In the Pay Schedule field select the Monthly option.
  5. Complete the following fields:
    • Pay period ending.
    • Date pay run will be paid.
    • Manually add employees to this pay run.
    • Create pay run with empty pay.
    • Import timesheets:
      • Timesheets for this pay period.
      • All unpaid timesheets.
      • Don't import timesheets.
  6. Click the Create button.
    JobKeeper_2.jpg

    Important

    For information on how to add an employee to a pay run, refer to the following article.

  7. Click on the employee's name who is receiving their last JobKeeper payment.
    JobKeeper_4.jpg
  8. Click the Actions button.
  9. Click the Add JobKeeper Payment button.
    JobKeeper_5.jpg
  10. In the JobKeeper Options field select the JobKeeper Finish option.
  11. In the JobKeeper Period field select the finish fortnight date.

    Important

    For further information on the JobKeeper finishing fortnights refer to the following guide section Reference table: Finishing fortnight.

  12. Click the Add another option button.
    JobKeeper_9.jpg
  13. In the JobKeeper Options field select the JobKeeper top-up option.
  14. In the Top-up Amount field, enter the top up amount for the employee.

    Important

    The JobKeeper payment top up rate is the difference between the employees normal monthly earnings rate and the $3,000 JobKeeper payment i.e. if the employee earns $2,800 a month, they will need a top up rate of $200.

  15. Click the Finished button
    JobKeeper_10.jpg
  16. Click the Save button.

    Important

    Repeat instructional steps 7 to 16 for each employee that needs to have their JobKeeper payment stopped. However, steps 12-14 only apply to employees that earn less than $1,500 per fortnight.

    These employees require a top up, either in whole or in part, to receive the JobKeeper payment. For example, a stood down employee who is not earning anything would receive a top up amount of $1,500; an employee who is working reduced hours and earning $500 a fortnight, would require a top up of $1,000.

    Employees who are earning a wage over $1,500 do not require a top up and instructional steps 12-14 do not apply. Once you have entered this information for all required employees proceed to instructional step 17.

    JobKeeper_11.jpg
  17. Click the Finalise Pay Run button.
    Jobkeeper_12.jpg
  18. Complete the following fields:
    • Date paid.
    • Create pay event:
      • Create pay event manually at a later date.
      • Create pay even immediately.
  19. Click the Finalise button.
    JobKeeper_13.jpg

Further information

Reference table: Starting fortnight
Fortnight Date Allowance description
01 30/03/2020 - 12/04/2020 JOBKEEPER-START-FN01
02 13/04/2020 - 26/04/2020 JOBKEEPER-START-FN02
03 27/04/2020 - 10/05/2020 JOBKEEPER-START-FN03
04 11/05/2020 - 24/05/2020 JOBKEEPER-START-FN04
05 25/05/2020 - 07/06/2020 JOBKEEPER-START-FN05
06 08/06/2020 - 21/06/2020 JOBKEEPER-START-FN06
07 22/06/2020 - 05/07/2020 JOBKEEPER-START-FN07
08 06/07/2020 - 19/07/2020 JOBKEEPER-START-FN08
09 20/07/2020 - 02/08/2020 JOBKEEPER-START-FN09
10 03/08/2020 - 16/08/2020 JOBKEEPER-START-FN10
11 17/08/2020 - 30/08/2020 JOBKEEPER-START-FN11
12 31/08/2020 - 13/09/2020 JOBKEEPER-START-FN12
13 14/09/2020 - 27/09/2020 JOBKEEPER-START-FN13
Reference table: Finishing fortnight
Fortnight Date Allowance description
01 30/03/2020 - 12/04/2020 JOBKEEPER-FINISH-FN01
02 13/04/2020 - 26/04/2020 JOBKEEPER-FINISH-FN02
03 27/04/2020 - 10/05/2020 JOBKEEPER-FINISH-FN03
04 11/05/2020 - 24/05/2020 JOBKEEPER-FINISH-FN04
05 25/05/2020 - 07/06/2020 JOBKEEPER-FINISH-FN05
06 08/06/2020 - 21/06/2020 JOBKEEPER-FINISH-FN06
07 22/06/2020 - 05/07/2020 JOBKEEPER-FINISH-FN07
08 06/07/2020 - 19/07/2020 JOBKEEPER-FINISH-FN08
09 20/07/2020 - 02/08/2020 JOBKEEPER-FINISH-FN09
10 03/08/2020 - 16/08/2020 JOBKEEPER-FINISH-FN10
11 17/08/2020 - 30/08/2020 JOBKEEPER-FINISH-FN11
12 31/08/2020 - 13/09/2020 JOBKEEPER-FINISH-FN12
13 14/09/2020 - 27/09/2020 JOBKEEPER-FINISH-FN13
Terminating an employee

If you are terminating an employee who is receiving a JobKeeper payment, you will need to follow the instructions in step three and apply the Jobkeeper finish date into the employees' last pay run.

Once you apply the JobKeeper finish date, you can then terminate the employee within the pay run. For further details on how to terminate an employee within a pay run refer to the following article.

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