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  • How payment amounts are calculated

    Your JobMaker Hiring Credit payment for each JobMaker period will be calculated automatically. This is done in ATO online services or the Business Portal each time you lodge your claim.

    The payment is based on:

    • the information you provide us via Single Touch Payroll (STP)
    • your headcount
    • the information your payroll provided in the registration and claim form.

    We will calculate this. You do not need to calculate this amount yourself.

    The steps below explain how we calculate this amount and is for your information only.

    Step 1: Calculate your increase in headcount

    We calculate the increase in your headcount (the number of employees you have) for the JobMaker period.

    Baseline headcount in year one

    At registration, you tell us what your baseline headcount is as at 30 September 2020. This will be zero if you either:

    • had no employees on 30 September 2020
    • are a new business that started after 30 September 2020.

    Each time you claim, you tell us your total headcount as at the end of the JobMaker period you are claiming for.

    We will then calculate the increase in your headcount for the JobMaker period by subtracting the baseline total headcount for the period from your total headcount.

    Adjusting the baseline headcount in year two

    In the second year of the JobMaker scheme, your baseline headcount is adjusted based on changes in your headcount in the first year of the scheme. We will calculate this adjustment for you. We will provide information on how to calculate this adjustment shortly.

    Step 2: Calculate your maximum payable days

    We calculate your claim based on a daily rate. We use the increase in headcount calculated at step 1 to work out your maximum payable days. This number is used to calculate your claim for each rate (either $200 per week or $100 per week worked out as a daily rate).

    Your maximum payable days is your headcount increase multiplied by the number of days in the JobMaker period.

    Number of days in the JobMaker periods

    JobMaker period

    JobMaker period dates

    Total days in period

    1

    7 October 2020 – 6 January 2021

    92 days

    2

    7 January 2021 – 6 April 2021

    90 days

    3

    7 April 2021 – 6 July 2021

    91 days

    4

    7 July 2021 – 6 October 2021

    92 days

    5

    7 October 2021 – 6 January 2022

    92 days

    6

    7 January 2022 – 6 April 2022

    90 days

    7

    7 April 2022 – 6 July 2022

    91 days

    8

    7 July 2022 – 6 October 2022

    92 days

    Step 3: Calculate your higher rate days

    We identify all eligible employees you reported through STP.

    We work out whether the employee should be counted towards your higher or lower rate days based on:

    • their date of birth
    • the date each employee starts employment with you.

    The higher rate day is used for each day your eligible employees are:

    • between 16–29 years old (worked out when they started employment)
    • employed during the JobMaker period.

    We will add up all these days for all employees eligible for the higher rate.

    For example, if you have two eligible employees aged 18 and 25, and the 18-year-old was hired for 84 days and the 25-year-old for 60 days in the period, the number of higher rate days would be 144 days.

    Step 4: Compare your maximum payable days and higher rate days

    We will calculate your claim for the higher rate using either:

    • the maximum payable days in step 2 if your maximum payable days in step 2 is equal to or less than the number of higher rate days. This will use up the days you can claim and we will skip steps 5 to 8 and go straight to step 9
    • all of your higher rate days from step 3 if the maximum payable days is greater than the total higher rate days.

    The number of maximum payable days that is left over once it is reduced by the higher rate days is worked out at step 6.

    Step 5: Calculate your lower rate days

    We use the number of days your eligible employees aged 30–35 years are employed during the JobMaker period (worked out in step 3) to calculate your lower rate days.

    We will add up all these days for all employees eligible for the lower rate.

    Step 6: Work out how many maximum payable days are left

    If your maximum payable days exceed your higher rate days, we will calculate how many days are left over.

    Step 7: Work out the number of claimable lower rate days

    We will calculate your claim for the lower rate using either:

    • your payable days left in step 6 if the number of payable days left is equal to or less than your lower rate days from step 5
    • all your lower rate days from step 5 if the number of payable days left is greater than your lower rate days.

    The days worked out in steps 4 and 7 are the total number of days claimed in working out your claim.

    Step 8: Calculate your total claim amount (subject to your payroll amount cap)

    We will calculate your total claim amount (subject to the payroll amount cap) amount as follows:

    • (days worked out in step 4 × ($200 ÷ 7)) + (days worked out in step 7 × ($100 ÷ 7)).

    Step 9: Work out your payroll amount cap

    Your payment is capped at the amount of your increase in payroll for the JobMaker period.

    We will calculate your payroll amount cap by working out the difference between your baseline payroll amount and the total payroll expenses for the JobMaker period.

    Step 10: Work out your maximum claim entitlement

    If your payroll amount cap from step 9 is greater than your total claim amount (subject to your payroll amount cap) calculated amount from step 8, your payment will be the full calculated amount from step 8.

    If your payroll amount cap is equal to or less than your total claim amount (subject to your payroll amount cap) calculated amount, your payment will be your payroll amount cap from step 9.

    Example – Working out a claim amount

    Heidi’s Hairdressing (HH) has 10 employees on 30 September 2020. At the end of JobMaker period 1, Heidi has 15 employees. HH has a baseline payroll amount of $125,000 (for the 92 days ending 6 October 2020).

    HH employs eight new employees during the first JobMaker period. Each employee works for at least 20 hours per week on average in this period. However, some are not employed for the total period.

    At the end of the first JobMaker period, HH has total payroll expenses of $134,500. Some employees have also left HH during the period. HH is left with a headcount of 15 at the end of the period. The total number of days in the first JobMaker period is 92 days.

    HH’s new employees are:

    • Philip – higher rate employee ($200) employed for full period (92 days)
    • Barry – lower rate employee ($100) employed for full period (92 days)
    • Chase – lower rate employee ($100) employed for full period (92 days)
    • Delilah – lower rate employee ($100) employed for part period (73 days)
    • Eve – higher rate employee ($200) employed for part period (55 days)
    • Francesca – lower rate employee ($100) employed for part period (46 days)
    • Gustav – lower rate employee ($100) employed for part period (37 days)
    • Hiro – higher rate employee ($200) employed for part period (28 days).

    HH’s claim for the first JobMaker period is worked out as follows:

    • Step 1 – HH provides the headcount for the period in their claim form (15 employees at the end of the first JobMaker period)
      • baseline headcount is provided in the registration form (total of 10 employees at 30 September 2020)
      • we calculate the headcount increase of five. That is, 15 − 10 = 5.
    • Step 2 – We work out the maximum payable days, by multiplying HH’s headcount increase by the total number of days in the claim period. 5 × 92 = 460 maximum payable days.
    • Step 3 – We calculate the total number of days employees on the higher rate are employed in the JobMaker period
      • as Philip, Eve and Hiro are all higher rate employees, we calculate the total days they are employed in the period
      • total days on higher rate =92 + 55 + 28 Total days on higher rate = 175.
    • Step 4 – As the step 2 amount is higher than the step 3, we use the total higher rate days of 175 in the claim calculation.
    • Step 5 – We calculate the total number of days employees on the lower rate are employed in the JobMaker period
      • as Barry, Chase, Delilah and Francesca, Gustav are lower rate employees, we calculate the total days they are employed in the period
      • total days on lower rate = 92 + 92 + 73 + 46 + 37 Total days on lower rate = 340.
    • Step 6 – We work out how many of the maximum payable days are left in order to determine how many lower rate days can be part of the claim. 460 (maximum payable days) − 175 (higher rate days) = 285.
    • Step 7 – We work out the number of claimable lower rate days at this step. As the number of days at step 6 is less than the total days on the lower rate at step 5, we use the number of days at step 6 in the claim calculation.
    • Step 8 – We work out HH’s total claim amount (subject to their payroll amount cap)    
      • days from step 4 (175) × ($200 ÷ 7) + days from step 7 (285) × ($100 ÷ 7)
      • $5,000 + $4,071.43
      • total claim amount (subject to their payroll increase cap) is $9,071.43.
    • Step 9 – We work out HH’s increase in payroll (from the total payroll received on the claim form and the baseline payroll received at registration)
      • increase in payroll is $9,500
      • we determined HH’s maximum claim entitlement by comparing the calculated amount from step 8 to the increase in payroll amount from step 9.
    • Step 10 – As the entitlement is less than the increase in payroll amount, the maximum claim entitlement will be the amount at step 8. HH is therefore entitled to claim $9,071.43 for the first JobMaker period.

    HH does not need to calculate this amount in their claim form. We will calculate this information based on the STP information HH reports and the information on headcount and payroll provided in their registration and claim forms.

    End of example
      Last modified: 17 Mar 2021QC 64266