JobMaker: Employers could receive over $10k over 12 months per new employee
Under the new JobMaker Hiring Credit scheme, businesses who hire/have hired eligible young people from 7 October 2020 – 6 October 2021 that are aged between 16-29 years, will receive $200 a week per employee, or $100 per week if the new employee is aged 30-35 years. The requirements are that it must be a new job, and the employee must work 20 hours per week.
Eligibility of the young person requires them to have been receiving JobSeeker, Youth Allowance or the Parenting Payment for at least one of the three months before they were hired.
Eligibility of the business requires them to be registered for PAYG Withholding and report to the ATO through Single Touch Payroll, not be receiving JobKeeper payments, hold an ABN and be up to date with tax and BAS lodgements.
For the first JobMaker period (7th October 2020 – 6th January 2021), you will be able to claim the credits from 1stFebruary 2021 until 30 April 2021. Credits are paid in arrears and claims are made each quarter. To view the JobMaker periods and respective claim periods click here
Here is a simple example of how it works:
John owns a barber shop. He hired two new hair technicians, aged 26 and 32 respectively. The first started work on the 21st October 2020 working 30 hours a week. The second started on 2nd December 2020 working 20 hours a week. Both new employees were receiving the JobSeeker payment the month prior to their new employment.
The first employee has worked (during the first JobMaker period) for 11 weeks. This means John will be able to claim 11 x $200 JobMaker credits for the first employee = $2,200. The second employee has worked for 5 weeks, so John will be able to claim 5 x $100 = $500. John will be able to continue claiming the credits for each employee for up to 12 months from their employment date.
Businesses are able to claim a total of $10,400 over the 12-month period for each eligible employee aged between 16 and 29, and $5,200 for those aged 30 to 35.
If you need help, please call us
In order to receive the credits, you must register via the ATO’s website and also report through Single Touch Payroll. To register click here. Your employee must also complete a JobMaker employee notice that declares they meet certain eligibility requirements. In addion, you will be required to provide you baseline headcount and baseline payroll amount. Your Taxpro accountant will be able to assist you with the correct registration and make sure you are eligible.
We will help you access this scheme so you can give your business a much-needed cash boost throughout 2021.
For more information or to book an appointment, please contact Chloe on 08 9240 7629 or email: admin@taxproaustralia.com.au
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