Sole traders are also eligible to apply for the JobKeeper payment which is $1,500 per fortnight flat; and there has been a lot of uncertainty about whether sole traders are part of the stimulus package or whether employers who have staff are eligible for the payment.
So the word is out! Yes sole traders regardless of having staff can apply for the payment; they will have to provide monthly information to ATO to continue being eligible for the payment and the support will last for the maximum of 6 months.
Eligibility Criteria:
- The business turnover is less than $1 billion and their turnover will be reduced by more than 30% compared to previous one month.
- The business turnover is more than $1 billion and their turnover will be reduced by more than 50% compared to previous one month.
Self-employed and sole traders must elect to participate in the scheme by registering their intent to claim by visiting the link below
https://www.ato.gov.au/Job-keeper-payment/
Eligible sole traders with employees will receive the payment for each eligible employee that was on their books on 1 March 2020 and continues to be engaged by that sole trader – including part-time and stood down employees. To be eligible, the employee must be an Australian citizen, or the holder of a visa that would allow them to be eligible for the JobSeeker Payment, or a Special Category (Subclass 444) visa holder. Casual employees are not eligible for the JobKeeper Payment, except those employees who had been with their employer on a regular basis for at least the previous 12 months as at 1 March 2020.
Eligible sole traders with employees who have stood down their employees before the commencement of this scheme will be able to participate. Employees that are re-engaged by a business that was their employer on 1 March 2020 will also be eligible.
Payment Process:
Eligible sole traders will be paid $1,500 per fortnight per eligible employee (which may include the individual themselves if they are self-employed). Eligible employees will receive, at a minimum, $1,500 per fortnight, before tax. Where sole traders participate in the scheme, either they or their employees will receive this Payment in a number of different ways.
- If the employee ordinarily receives $1,500 or more in income per fortnight before tax, the employee will continue to receive their regular income according to their prevailing workplace arrangements. The JobKeeper Payment will assist the sole trader to continue operating by subsidising part or all of the income for themselves or for their employee(s).
- If the employee ordinarily receives less than $1,500 in income per fortnight before tax, the sole trader must pay their employee, at a minimum, $1,500 per fortnight, before tax.
- If the employee has been stood down, the sole trader must pay the employee, at a minimum, $1,500 per fortnight, before tax.
- If the employee was employed on 1 March 2020, subsequently ceased employment with the sole trader, and then has been re-engaged by the same eligible sole trader, the employee will receive, at a minimum, $1,500 per fortnight, before tax.
It will be up to the employer if they want to pay superannuation on any additional wage paid because of the JobKeeper Payment.
Payments will be made to the sole trader monthly in arrears by the ATO and the first payment is expected to be made in the first week of May.
Speak to one of our advisors at Pine Tax for assistance.