Sole traders and some other entities (such as partnerships, trusts or companies) may be entitled to the JobKeeper Payment scheme under the business participation entitlement.
Your entity may be eligible for the JobKeeper Payment scheme if you:
- have a non-employee individual who is actively engaged in the operation of the business – we refer to this individual as the eligible business participant
- meet the other relevant eligibility requirements.
A limit applies of one $1,500 JobKeeper payment per fortnight for the eligible business participant. If your entity also has employees, you may also be able to claim additional JobKeeper payments of $1,500 per fortnight per eligible employee.
The entity, not the eligible business participant, receives the JobKeeper payment. The exception is a sole trader, who is both the business entity and an eligible business participant, and so receives the JobKeeper payment themselves.
How to prepare
- Check you and your business meet the eligibility requirements, including the turnover test. The turnover calculation is based on GST turnover. This applies even if an entity is not registered for GST.
- If you have employees, check they meet the employee eligibility requirements and continue to pay them at least $1,500 per JobKeeper fortnight.
- Send the JobKeeper employee nomination notice to all your eligible employees to complete and return to you by the end of April if you plan to claim JobKeeper payments for April 2020. Keep it on file and provide a copy to your registered tax or BAS agent if you are using one.
- Seek advice from your registered tax or BAS agent if you need help. Your registered tax or BAS agent can enrol, identify and declare for JobKeeper on your behalf using Online service for agents.
- If you find it difficult to interact with us online and don't use a registered tax or BAS agent, you can call us for assistance.
Step 1: Enrol and nominate for the JobKeeper payment
- You or your registered tax or BAS agent can enrol for the JobKeeper payment.
- Log in to ATO online services via myGov or the Business Portal using myGovID.
- Enrol and nominate by confirming:
- your business has experienced a fall in turnover of at least 30%
- expected number of eligible employees (if you have them)
- your bank and contact details for payment
- you are a sole trader nominating as an eligible business participant.
- Notify all your eligible employees you have nominated them.
- To ensure you receive your JobKeeper payments as early possible, you should enrol by the end of April. However, enrolments are open till the end of May if you need more time.
Step 2: Identify and maintain your eligible employees or business participants
- You or your registered tax or BAS agent can identify each eligible employee or eligible business participant that you will claim the JobKeeper Payment for and maintain their details each month.
- If you are nominating yourself as the eligible business participant, log in to ATO online services via myGov, or the Business Portal using myGovID and confirm your details.
- If you don’t have employees
- Log in to ATO online services via myGov, or the Business Portal using myGovID to confirm that you don’t have any employees to identify.
- If you do have employees, you can identify your employees in one of the following ways:
- Directly into your STP enabled payroll software if it is updated with JobKeeper functionality. You'll need to confirm the number of eligible employees through ATO online services using myGov or the Business Portal using myGov ID.
- In ATO online services using myGov or in the Business Portal if your STP payroll software is not updated with JobKeeper functionality or you do not have STP enabled payroll software.
- If you have more than 40 employees, you can create your own JobKeeper employee report using the JobKeeper Payment Guide sample payload files – Blank file (XLS, 11KB)This link will download a file and Example file (XLS, 11KB)This link will download a file – to produce your own JobKeeper report and provide it back to the ATO by uploading via the Business Portal Transfer file function or consider moving to an STP enabled payroll solution.
Step 3: Make a business monthly declaration
- Each month, you must reconfirm your reported eligible employees and yourself as the sole trader (eligible business participant) through ATO online services using myGov, in the Business Portal or via your registered tax or BAS agent.
- If your eligible employees change or leave your employment, you will need to notify us through this monthly declaration.
- You must also provide information as to your current and projected GST turnover. This is not a retest of your eligibility, but rather an indication of how your business is progressing under the JobKeeper Payment scheme.
More info from the ATO here or to speak with an HR expert, call 1300 211 311