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  • Your payroll

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    Payroll amount and baseline payroll

    Your payroll amount includes the sum of all your payroll expenses for a JobMaker period.

    At registration we will ask you for your baseline payroll. Your baseline payroll is worked out by counting the payroll expenses in the three months up to and including 6 October 2020 (a 92-day period).

    If you are a new business that began after 6 October 2020, your baseline payroll amount will be zero.

    If your business only started employing employees part way through the three months up to 6 October 2020, your baseline payroll is your payroll expenses for the relevant period.

    Payroll expenses

    Your baseline amount and total payroll expenses include:

    • salary and wages (includes any JobKeeper top-up amounts)
    • all allowances other than a reimbursement of expenses or a fringe benefit
    • overtime, shift and penalties
    • bonuses and commissions
    • amounts withheld under PAYG withholding
    • amounts applied under an effective salary sacrifice arrangement.

    The following payments are not included in the baseline or total payroll expenses:

    • government paid parental leave
    • workers’ compensation absence (not able to work)
    • reimbursements of expenses incurred by employees
    • directors’ fees (that are not salary and wages)
    • lump sum payments (lump sum A, B, D and E)
    • exempt foreign income (exempt from pay as you go withholding)
    • eligible termination payments
    • fringe benefits provided to an employee which are not part of an effective salary sacrifice arrangement
    • amounts you contribute as super to meet your super guarantee obligations.

    Payroll is worked out similarly to the wage condition for JobKeeper Payment, although the period is worked out differently.

    Payroll increase

    Your payroll expenses must have increased in the JobMaker period when compared to the baseline period. If your payroll has not increased, you will not be eligible for a payment.

    Your payroll increase also caps your potential payment for a JobMaker period. If your claim entitlement is more than the increase in your payroll, your will only be able to claim the payroll increase.

    Total payroll expenses for a JobMaker period

    Your total payroll expenses include the sum of all of your payroll expenses for the JobMaker period.

    Example 1 – Employer replaces one job with two part time jobs with the same salary

    Saul runs a small tiling business with one full-time employee. He pays his employee a salary of $70,000 a year. Saul's baseline payroll amount is the sum of the payroll amounts for the three months (92 days) up to and including 6 October 2020. His baseline payroll amount is $17,500 for the first JobMaker period.

    Saul’s employee quits in early October. Saul decides his business can operate more flexibly if he employs two part-time employees. He hires two new part-time employees on 7 October 2020 and pays them each $35,000 per year.

    Saul’s total payroll expenses for the first JobMaker period is $17,500 ($8,750 for each employee). The total payroll expenses for the JobMaker period do not exceed the baseline payroll amount, so he has not had a payroll increase.

    Saul is not be entitled to a JobMaker Hiring Credit payment for the period.

    End of example

     

    Example 2 – Employer replaces one job with two part-time jobs with a higher salary for each

    Jia runs a small business selling bikes with one full-time employee. He pays his employee a salary of $80,000 a year. Jia pays staff fortnightly. His baseline payroll amount is the sum of the payroll amounts for the three months (92 days) up to and including 6 October 2020. Jia’s baseline payroll amount is $18,461 for the first JobMaker period.

    Just before JobMaker period 1, Jia’s employee quits. He decides the business can operate more efficiently if he employs two part-time employees.

    Jia proceeds with his plan, hiring two part-time employees on 7 October 2020. He pays them each a salary of $50,000 per year. Jia’s total payroll expenses for the first JobMaker period is $23,076 ($11,538 for each employee).

    As his total payroll expenses for the JobMaker period exceeds the baseline payroll amount by $2,577, he has a payroll increase.

    If Jia satisfies the other requirements, he is eligible for the JobMaker Hiring Credit for the period.

    End of example

     

    Example 3 – Employer hires new employee

    Mary runs a small bakery business with one full-time employee. She pays her employee a salary of $30,000 a year. The baseline payroll expenses for the first JobMaker period is the sum of the payroll amounts for the three months (92 days) up to and including 6 October 2020. Mary’s baseline payroll amount is $7,500.

    The bakery has a growth in sales which prompts Mary to hire an assistant manager on 7 October 2020. Mary pays the assistant manager a salary of $80,000 per year.

    Mary’s total payroll expenses for the JobMaker period are $27,500 ($20,000 for the assistant manager and $7,500 for her other employee). As the total payroll expenses for the JobMaker period exceeds the baseline payroll amount by $20,000, she has a payroll increase.

    If Mary satisfies the other requirements, she is eligible for the JobMaker Hiring Credit payment for the period.

    End of example

    Baseline payroll amount

    Your baseline payroll amount depends on the number of days in the JobMaker period that you are claiming for.

    For each JobMaker period, the baseline payroll is the payroll expenses paid or applied in the same number of days that are in the JobMaker period, ending on 6 October 2020. The number of days in the baseline period and the JobMaker period being tested must always be the same.

    At registration, you will provide the payroll for the three-month period ending on 6 October 2020 (a 92-day period).

    When claiming for JobMaker periods that are 92 days long (including JobMaker period 1), we will not ask you to re-enter your baseline payroll.

    When claiming for JobMaker periods that have a different length (including JobMaker period 2), we will ask you to re-enter your baseline payroll. Disregard any payroll expenses that you included at registration if they were paid on days outside of the baseline payroll period for that JobMaker period.

    For example, when claiming for JobMaker period 2 your baseline payroll will:

    • include all payroll expenses paid from 9 July 2020 to 6 October 2020 inclusive (being a 90-day period)
    • not include payroll expenses paid or applied on 7 and 8 July, which would have been included in the amount provided at registration.
    Number of days in each JobMaker period

    JobMaker period

    JobMaker period dates

    Days in JobMaker period

    1

    7 October 2020 – 6 January 2021

    92

    2

    7 January 2021 – 6 April 2021

    90

    3

    7 April 2021 – 6 July 2021

    91

    4

    7 July 2021 – 6 October 2021

    92

    5

    7 October 2021 – 6 January 2022

    92

    6

    7 January 2022 – 6 April 2022

    90

    7

    7 April 2022 – 6 July 2022

    91

    8

    7 July 2022 – 6 October 2022

    92

    New businesses

    If you are a new business that began after 6 October 2020, your baseline payroll amount will be zero.

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      Last modified: 17 Mar 2021QC 64266