Xero has rolled out new payroll features that it says will help small businesses in Australia apply for the JobKeeper wage subsidy.
The cloud-based accounting platform is now capable of generating a list of employees who qualify for JobKeeper payments.
The platform does this by comparing the Federal Government’s eligibility criteria to data in Xero payroll.
Xero Australia Managing Director, Trent Innes says this will make it easier for struggling small businesses to get the government assistance they need as soon as possible.
“These new online features give employers and their advisors the tools to demonstrate eligibility and navigate the payroll processes that are necessary to receiving government aid,” Mr Innes said in a written statement.
Who is Eligible for JobKeeper?
The Australian government’s JobKeeper program is designed to keep people employed amid the economic carnage caused by the coronavirus pandemic.
The employer and the employee must meet the government’s eligibility criteria for the $1,500 per fortnight wage subsidy.
Companies, partnerships, trusts, sole traders and not-for-profits and charities that employ people may qualify for JobKeeper.
To be eligible, businesses with a turnover of less than $1 billion must be able to show that revenue has dropped by 30% or more compared to the same period a year ago.
As for businesses with a turnover of $1 billion or more, they need to show revenue has fallen by 50% compared to a year ago, while registered charities must have recorded a 15% or more drop in revenue to qualify.
Employers will need to pay eligible employees a minimum of $1,500 (before tax) every fortnight to claim the payment.
The Government will then reimburse the employer for those payments, with reimbursements expected to start in May.
JobKeeper payments can be backdated to 30 March, 2020.
Employees eligible for JobKeeper payments include those employed by you and those stood down or re-hired.
They must be either a permanent full-time or part-time employee or long-term casual employee since 1 March, 2020.
Other criteria include:
- At least 16 years of age
- An Australian resident as at 1 March
- Not a recipient of government paid parental leave
- Agrees to be nominated by the employer
Casual employees are not eligible unless they were employed on a regular and systematic basis for at least 12 months since 1 March.
For more details about the eligibility criteria, check out the Australian Government’s website.