Given the majority of small businesses utilise Xero or MYOB we thought it might be helpful to circulate the instructions, from both software providers, for setting up payroll correctly to ensure that your Jobkeeper payments to your employees are processed and reported correctly in the extension period.

Am I Eligible?

In order to be eligible for Jobkeeper payments during the extension period 1 from 28 September 2020 until 3 January 2021, an entity has to satisfy the below condition:

• Actual GST turnover for the quarter ending September 2020 must be at least 30% less than its GST turnover for the quarter ended September 2019

Further details are available in a separate article to determine your eligibility.

It is important to understand that for any employer currently reporting through Single Touch Payroll (‘STP’) this is how information relating to Jobkeeper payments will be communicated to the ATO as a tiered payment rate applies to eligible employees.

We have summarised instructions in relation to choosing employee Jobkeeper tier levels for eligible business.

Xero

Xero has made it easy for you to assign a tier to a Jobkeeper recipient, from the Payroll menu.  

• Select Pay Employees
• Access the Enrolment settings through Payroll Support page
• Simply choose an employee and click Set Tier
• Save for reporting
• Update the payroll template using the new rates -$1,200 or $750

Instructions can be found here

MYOB

MYOB Jobkeeper summary report has list of suggested tier levels for employees based on the payroll information set up.

• You can choose the payment rate for employees under the Jobkeeper Payments tab in the Payroll reporting centre.
• Select each eligible employee and choose their Employee Tier
• Notify the ATO
• Update the payroll template using the new rates -$1,200 or $750

Instructions can be found here