Set up and process JobMaker Credit on Reckon Payroll app


If your business is eligible for JobMaker Hiring Credit subsidy, you can use the Reckon Payroll app to report JobMaker Credit. Please follow the guide below to report eligible employee and the pay runs for JobMaker Credits.


Employee Eligibility

For an employer to receive a subsidy payment for an employee the following must be true for that employee:

  • Hired after the 7th of October 2020.
  • Aged between 16 and 35.
  • For 28 consecutive calendar days prior to their hiring, received one of the following government payments:
    • JobSeeker Payment.
    • Youth Allowance.
    • Parenting Payment.
  • Employed on a full time, part time or casual basis. Contractors are not eligible.

 

Setting up an employee to be reported for JobMaker Credits

The following fields are mandatory for an employee to be considered for the subsidy

  • Date of Birth
  • Start Date
  • Tax File Number

Date of Birth

Tap on Employees icon on the navigation bar at the bottom of the screen. Select the active employee then tap on the show more icon (...) on the top-right hand corner of the screen then tap on Edit. Ensure that the employee Date of Birth is entered on the Contact details screen.

To be eligible for JobMaker Credit, the employee must be aged between 16 and 35.
Start Date

Enter the employee Start Date on the Employment details screen.

Employee needs to be hired after the 7th of October 2020 to be eligible for JobMaker Credit.
Tax File Number (TFN)

Enter the employee Tax File Number (TFN) on the Tax details screen.


Nominating an employee for the JobMaker Credit subsidy

To nominate an employee for the JobMaker Credit subsidy, a new allowance is included in the employees pay run called JMHC-NOM.


Follow the steps below to add a new allowance pay item.

The allowance name must follow the ATOs designated format. Any deviation from the exact name may significantly delay or unavailable to be processed.

Steps

  1. Navigate to Settings, then tap on Manage allowance items.
  2. Tap the blue + in the top-right hand corner to create a new allowance item.
  3. For the Allowance item name, type the name as JMHC-NOM .
  4. Set the Allowance type to Other.
  5. Set a Default Base Rate of $0.00.
  6. Set the Tax applicable and Show as allowance toggle to OFF.
  7. Tap Save in the top-right hand corner of the screen.


JMHC-PXX allowance item

As well as nomination, a second new allowance is reported for each JobMaker Credit period to claim the subsidy. The name of this allowance is called JMHC-PXX where XX represents the JobMaker period.


Steps

  1. Navigate to Settings, then tap on Manage allowance items.
  2. Tap the blue + in the top-right hand corner to create a new allowance item.
  3. For the Allowance item name, type the name as JMHC-PXX .
You may need to create multiple JMHC-PXX allowance items if you have eligible employee/s across the JobMaker Hiring Credit subsidy periods (7 Oct 2020 - 6 Oct 2022). Refer to the JobMaker Credits Reporting Periods here.
  1. Set the Allowance type to Other.
  2. Set a Default Base Rate of $0.00.
  3. Set the Tax applicable and Show as allowance toggle to OFF.
  4. Tap Save in the top-right hand corner of the screen.


Processing a pay run with a JobMaker Credit nomination

The process to nominate an employee for the subsidy is carried out during the regular pay run process.


Nominating an employee

To nominate an employee, the JMHC-PXX allowance item must be included in a pay run to report which period the employee became eligible. In the below example, Joe Beecroft became eligible in Period 1 and has had the JMHC-P01 allowance item for $0 added to the pay run as well as the nomination allowance item (JMHC-NOM).


If an eligible employee leaves the business

If an employee leaves the business, you must fill out the Finish date (termination date) when archiving the employee. This will be included as the cessation date the next time an STP report is sent to the ATO and will inform them the employer is no longer eligible for the subsidy for that employee.

Follow the steps below to archive an employee.

Steps:

  1. Tap on Employees icon on the navigation bar at the bottom of the screen.
  2. Select the active employee then tap on the show more icon (...) on the top-right hand corner of the screen.
  3. Tap on Archive on the menu.
  4. Verify the employee Finish date before archiving. Tap on Change Finish Date option if you need to update the employee termination date.


If an eligible employee leaves but then returns to the business

If an employee that is eligible leaves and then returns to the business, you must include a different named allowance to re-nominate the employee for the subsidy. The item is called JMHC-RENOM.


Steps

  1. Navigate to Settings, then tap on Manage allowance items.
  2. Tap the blue + in the top-right hand corner to create a new allowance item.
  3. For the Allowance item name, type the name as JMHC-RENOM .
  4. Set the Allowance type to Other.
  5. Set a Default Base Rate of $0.00.
  6. Set the Tax applicable and Show as allowance toggle to OFF.
  7. Tap Save in the top-right hand corner of the screen.
Similar to JMHC-NOM allowance item, you will only need to use it once on the rehired eligible employee pay runs.

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