Adding JobKeeper Allowance pay items in Reckon Accounts

How-to Video
Overview
JOBKEEPER-START-FNXX/JK-ST-FNXX
JK-TIERX
JOBKEEPER-TOPUP
JOBKEEPER-FINISH-FNXX/JK-FI-FNXX

This Help Article applies to both Reckon Accounts and Reckon Accounts Hosted

This article has been updated with the JobKeeper 2.0 steps. To learn more about the changes in JobKeeper 2.0, please click here.

How-to Video

Overview

In order to process JobKeeper payment, a minimum of three (3) ATO mandated allowance pay items need to be added to your company file. This document will guide you to how setup these pay items in Reckon Accounts.

The allowance name and the Tax Tracking type must follow as indicated. Any deviation from the exact name may significantly delay or prevent the government reimbursement.

JOBKEEPER-START-FNXX/JK-ST-FNXX

This payroll item is used to indicate the first JobKeeper fortnightly period for which the subsidy is payable. "XX” refers to the fortnightly period from which the payment first started.

You can use either JOBKEEPER-START-FNXX or JK-ST-FNXX.

The JobKeeper Start Fortnight is required to inform the ATO from which fortnight the subsidy is to be reimbursed. The JobKeeper Start Fortnight may be reported once or continue to be reported in subsequent Pay Events but must not be forward-dated. For simplicity, in our examples, we are going to use JOBKEEPER-START-FNXX allowance once only.

Click here to find out about the Fortnight numbers (FN).

You might have to create multiple JOBKEEPER-START-FNXX/JK-ST-FNXX items if you have eligible employee/s who start receiving the JobKeeper payments in different fortnight period. Each employer’s payroll arrangements may be different, and employees may enter, or exit pay periods at different times. Some workers may be on workers’ compensation absences and only return to work sometime after the start of the JobKeeper payment.

To create this item, you will need to:

Go to Lists > Payroll Item List
Click on Payroll Item drop-down menu > New.
Choose Addition in Payroll item type window and click Next.
Type the name as JOBKEEPER-START-FNXX (used in this example) OR JK-ST-FNXX in Name used in payments and payroll reports window and click Next
You will need to replace "XX" according to the JobKeeper reporting period your pay date falls in. In the below screenshot, we have used the first fortnight's FN number (01) as an example.
Choose your Expense account in Expense account window. You might want to use an existing Expense account or create a new account to track the transactions.
Choose Allowances - Other in Tax tracking type window.
You will not select PAYG or State Payroll Tax for this item in Taxes window. This payroll item is used to indicate the beginning of JobKeeper Payment of eligible employee/s.
As the amount for a START item will be $0.00, tax is irrelevant.
Choose Neither in Calculate based on quantity window.
Enter 0 for the rate in Default rate and limit window.
Do not select any Super item/s in Inclusions window.
Click Finish to complete setting up this payroll item.

JK-TIERX

This allowance item is used to determine which JobKeeper tier the employee falls into. "X" referes to the tier number, so for example if an employee is Tier 1, the item will be named JK-TIER1.

You may need to create multiple JK-TIERX items if you have employees which are eligible for different payment rates.

o create this item, you will need to:

Go to Lists > Payroll Item List
Click on Payroll Item drop-down menu > New.
Choose Addition in Payroll item type window and click Next.
Type the name as JK-TIERX (You will need to replace X with the relevant tier, either 1 or 2) in Name used in payments and payroll reports window and click Next.
You will need to replace "XX" according to the JobKeeper reporting period your pay date falls in. In the below screenshot, we have used the first fortnight's FN number (01) as an example.
Choose your Expense account in Expense account window. You might want to use an existing Expense account or create a new account to track the transactions.
Choose Allowances - Other in Tax tracking type window.
You will not select PAYG or State Payroll Tax for this item in Taxes window. This payroll item is used to indicate the beginning of JobKeeper Payment of eligible employee/s.
As the amount for a START item will be $0.00, tax is irrelevant.
Choose Neither in Calculate based on quantity window.
Enter 0 for the rate in Default rate and limit window.
Do not select any Super item/s in Inclusions window.
Click Finish to complete setting up this payroll item.

JOBKEEPER-TOPUP

This payroll item is used to indicate the Gross amount of JobKeeper payment.

To create this item, you will need to:

Go to Lists > Payroll Item List.
Click on Payroll Item drop-down menu > New.
Choose Addition in Payroll item type window and click Next.
Type the name as JOBKEEPER-TOPUP in Name used in payments and payroll reports window and click Next.
Choose your Expense account in Expense account window. You might want to use an existing Expense account or create a new account to track the transactions.
Choose Allowances - Other in Tax tracking type window.
From the Taxes window, you will need to:
1. Select PAYG Tax as the JobKeeper payments are taxable.
2. Depending on your state, State Payroll Tax might not be applicable (for example, SA exempts Payroll Tax for JobKeeper payments, as of 20/04/20). Please check your State's requirement to know if you need to select State Payroll Tax.
Choose Neither in Calculate based on quantity window as you will need to enter the amount manually.
Leave the rate and limit blank in Default rate and limit window.
Super is not mandatory for JobKeeper Payments. An employer can choose if they wish to pay Super on JobKeeper payments.
Click Finish to complete setting up this payroll item.

JOBKEEPER-FINISH-FNXX/JK-FI-FNXX

This allowance is used to indicate any exit of eligibility or termination of the employee. "XX” refers to the final fortnightly period to which the payment applies. The ATO must be informed of the fortnight from which the JobKeeper payment no longer applies. The JobKeeper Finish Fortnight may be reported once or continue to be report in subsequent Pay Events but must not be forward-dated. For simplicity, in our examples, we are going to use JOBKEEPER-FINISH-FNXX allowance once only.

Click here for information on JobKeeper Fortnight numbers.

You might have to create multiple JOBKEEPER-FINISH-FNXX/JK-FI-FNXX items if you have employees who stop receiving the JobKeeper payments in different fortnight period. It can happen due to Workers' Compensation absence, Cessation of employment, Change of citizenship, visa, personal circumstances and for other reasons which can make an employee no longer eligible to receive the JobKeeper Payments.

To create this item, you will need to:

Go to Lists > Payroll Item List.
Click on Payroll Item drop-down menu > New.
Choose Addition in Payroll item type window and click Next.
Type the name as JOBKEEPER-FINISH-FNXX (used in this example) OR JK-FI-FNXX in Name used in payments and payroll reports window and click Next.
You will need to replace "XX" according to the JobKeeper reporting period your pay date falls in. In the below screenshot, we've used the last Fortnight's FN number (13) as an example.
Choose your Expense account in Expense account window. You might want to use an existing Expense account or create a new account to track the transactions.
Choose Allowances - Other in Tax tracking type window.
You will not select PAYG or State Payroll tax for this item in Taxes window. This payroll item is used to indicate the end of JobKeeper Payment of eligible employee/s.
As the amount for a FINISH item will be $0.00, tax is irrelevant.
Choose Neither in Calculate based on quantity window.
Enter 0 for the rate in Default rate and limit window.
Do not select any Super item/s in Inclusions window.
Click Finish to complete setting up this payroll item.