EMPLOYER SCENARIOS – ELIGIBILITY AND BENEFITS

Example 1: Star Hairdressing – multiple employees on different wages

Lucy owns a hairdressing business with two employees. The business is still operating at this stage, but Lucy expects her turnover will decline by more than 30% in the coming months.

Both employees are currently working for the business:

  • Amelia, who is a permanent full-time employee on a salary of $3,000 per fortnight before tax, and
  • Joe, who is a permanent part-time employee on a salary of $1,000 per fortnight before tax.

Does Lucy meet the JobKeeper eligibility criteria?

Yes, Lucy is eligible to receive the JobKeeper payment for each employee. Star Hairdressing and its employees will benefit

Amelia: 

  • Star Hairdressing will continue to pay Amelia her full-time salary of $3,000 per fortnight before tax.
  • Star Hairdressing will receive $1,500 per fortnight from the payment to subsidise the cost of Amelia’s salary and will continue to pay the superannuation guarantee on Amelia’s income.

Joe: 

  • Star Hairdressing will continue to pay Joe his $1,000 per fortnight before tax salary and an additional $500 per fortnight before tax, totalling $1,500 per fortnight before tax
  • Star Hairdressing will receive $1,500 per fortnight before tax from the payment which will subsidise the cost of Joe’s salary
  • Star Hairdressing must continue to pay the superannuation guarantee on the $1,000 per fortnight of wages that Joe is earning and choose to pay or not pay superannuation on the additional $500 (before tax) paid to Joe under the JobKeeper payment.

How does Lucy apply?

1. Lucy registers her initial interest through the ATO from 30 March 2020.

2. Lucy applies to the ATO with details about her eligible employees.

3. Lucy advises her employees that she has nominated them as eligible to receive the payment.

4. Lucy provides information to the ATO on a monthly basis and receives the payment monthly.

Example 2: Bella’s Beauty Salon – employees who have been stood down without pay

Bella runs a beauty salon in Western Australia and normally employs three permanent part-time beauticians.

The government has directed beauty salons to no longer operate and she has had to shut her business. Bella stood down her three beauticians without pay after 1 March 2020.

Does Bella meet the JobKeeper eligibility criteria?

Yes, Bella’s turnover will decline by more than 30%, so she is eligible to apply for the JobKeeper payment for each employee and pass on $1,500 per fortnight before tax to each of her three beauticians for a maximum of six months.

How will Bella and her employees benefit?

  • Bella will maintain the employment relationship with her employees and be able to quickly resume operations once the restrictions are lifted.
  • Bella must advise her employees that she has nominated them as eligible to receive the payment and decide whether she wants to pay superannuation on the additional income paid from JobKeeper. 
  • Bella’s employees must notify Services Australia of a change in their income from receiving the JobKeeper payment – particularly if they are receiving other income support payments like the JobSeeker payment. This can be completed online via MyGov.

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