Single Touch Payroll (STP) - How to set up JobKeeper accounts for STP - post 28 Sept 2020

The JobKeeper Payment, which was originally due to run until 27 September 2020, will now continue to be available to eligible businesses (including the self-employed) and not-for-profits until 28 March 2021.

Jobkeeper was introduced to the software in Version 5.4.40. If you have been using JobKeeper and need to continue post 28  September 2020 please follow the JobKeeper Extension Update guide found here https://exalt.zendesk.com/hc/en-us/articles/360001928855-JobKeeper-Extension-Update

If you are new to JobKeeper post 28 September 2020 please follow the instructions below for setting up your JobKeeper accounts.

If you have been using JobKeeper and need to update for the Extension period please refer the this article https://exalt.zendesk.com/hc/en-us/articles/360001928855-Single-Touch-Payroll-STP-JobKeeper-Extension-Update 

The extension of the scheme applies over the subsequent 2 Quarters, introducing both lower payment rates per quarter than the initial JobKeeper Payment rate and a tiered-rate approach to workers, based upon average hours worked per week in a reference period (see below), rather than a flat rate for all workers.

Quarter 3 (28 September 2020 to 3 January 2021) comprises 7 fortnights of:

  • Tier 1 - $1,200 per fortnight for those working 80 hours or more in any reference period; and
  • Tier 2 - $750 per fortnight for those working fewer than 80 hours in any reference period

Quarter 4 (4 January 2021 to 28 March 2021) comprises 6 fortnights of:

  • Tier 1 - $1,000 per fortnight for those working 80 hours or more in any reference period; and
  • Tier 2 - $650 per fortnight for those working fewer than 80 hours in any reference period

You need to have applied The 2020.10 release and hotfix “JobKeeper 20200923 JobKeeper Extension Update” before starting to setup your JobKeeper accounts.   These need to be links to the hotfix/release files

Entering JobKeeper payments

To enter JobKeeper payments:

  1. Setup the employee card for JobKeeper
  2. Create a new Account to post the JobKeeper payments to.
  3. Add JobKeeper to the Pay Wages form 

1. Set up the Employee

Once you have upgraded to v5.4.40 or upgraded to V2020.10, there will be a new option available under the tax tab in the employee record where you can enter the JobKeeper Payments period. 

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The relevant Start Fortnight and End Fortnight for the JobKeeper payments to the employee should be entered here.  Only enter the end fortnight when the employee stops receiving JobKeeper.

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2. Add a JobKeeper Account

In order to make JobKeeper payments, a new Payroll expense account called JobKeeper Tier 1 and JobKeeper Tier 2 needs to be created as shown below:

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To ensure SGC is not calculated in this payment, tick the box marked "Exclude from Ordinary Time Earnings"

To ensure reporting is correct on STP, tick the box 'Is Allowance', tick 'Include in PAYGW (Is taxable)' and ensure the correct JobKeeper Tier is selected in 'Inc Allowance Tuple'

 

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3. Add an account to the Pay Wages Form

The new JobKeeper payroll account needs to be added to the Pay Wages form as shown below.

Examples from ATO article https://www.ato.gov.au/general/jobkeeper-payment/employers/paying-your-eligible-employees/#Howmuchtopay

How to enter ATO examples in Insol6

ATO Example 1 – Earnings in respect of work performed

ATO Example 2 – Employee receives an additional amount arising from the JobKeeper scheme

ATO Example 3 – Less than $450 per calendar month

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Preparing the STP

Once the JobKeeper payments are processed, STP may be submitted as normal.

STP Reports

STP Employee Payment Summary Listing

The STP Employee Payment Summary Listing will report the JobKeeper payment as part of Gross Wages as shown below

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STP Payroll Event Details  

The STP Payroll Event Details Report contains a detail entry for the JobKeeper Wages transaction.

Review the STP Outputs

If you wish to confirm the JobKeeper payments were properly submitted, make a note of the BatchID

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Locate the folder in the job's Document Management tab, and right mouse click and select Open in Windows Explorer

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Then drill into the STP folder and right mouse click the file Request.xml and select Open With Notepad

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The xml file should contain the following for each employee

1. JOBKEEPER-TOPUP

2. Amount of Job Keeper Payment in numbers

3. JOBKEEPER-END-FNxx  (where xx is the end fortnight number)

4. JOBKEEPER-START-FNxx (where xx is the start fortnight number)

As per the below highlighted examples

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