Administered through STP, JobMaker provides a payment to employers of $200 per week for eligible new employees aged between 16 and 29, and $100 per week for eligible employees aged between 30 to 35 years for 12 months. The hiring credit is available for jobs created from 7 October 2020 until 6 October 2021.
JobMaker cannot be claimed for employees or business participants receiving JobKeeper.
The first JobMaker claim period ends on 6 January 2021 and clients will need to be enrolled by this date to claim for the first period.
As the registration details form a baseline for JobMaker, it is essential that these are correct before the first claim is made. The baseline details cannot be amended once the first claim is made.
There are three tests for JobMaker:
1. Employer eligibility
2. Employee eligibility
3. Additional employee test (additionality test). The employer’s:
Government entities or agencies, banks and other institutions subject to the bank levy, businesses in liquidation, and foreign Government entities (unless a resident entity), are unable to access JobMaker.
The JobMaker rules require a:
In addition, employees will need to complete a JobMaker employee notice (using the ATO form or create their own).
The headcount and the payroll calculations for JobMaker can be complex. Under the ‘additionality test’, JobMaker can only be claimed if there is an increase in headcount and payroll for that period, compared with the relevant baseline figures. As a result, there will be issues as employers are required to verify their payroll and headcount against their baseline amount each JobMaker period, i.e., JobMaker does not simply attach to a new employee but relies on the overall payroll and headcount of the employer.
The headcount and payroll increase is measured on the last day of each JobMaker period.
The baseline headcount amount is initially the number of people employed by the entity on 30 September 2020. However, this will be adjusted in the second year of the JobMaker scheme based on the claims made in the first year of the scheme.
The baseline payroll amount depends on the number of days in the JobMaker period. Initially entities will provide the payroll for the 92 day period ending on 6 October 2020. This will be the baseline payroll amount for the first JobMaker period. However, this will need to be adjusted for each JobMaker period that is a different length. For example, the second JobMaker period has 90 days so the baseline payroll for that period will be the payroll expenses in the 90 day period from 9 July 2020 to 6 October 2020.
If a business commenced after 6 October 2020, then its baseline headcount and payroll amount would normally be zero (at least initially).
You can enrol clients via the ATO portal or clients can register themselves via ATO online services or the business portal – see the COVID-19 screen then select ‘JobMaker Hiring Credit’.