Table of Contents

Processing JobMaker Credits in Reckon Accounts

JobMaker Credit reporting in Reckon Accounts is handled via the Single Touch Payroll reporting system. To report pay runs you wish to apply for JobMaker Credits, please follow the guide below.

You can find out more about JobMaker Credits by clicking here.


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:

  • Tax File Number
  • Commencement Date
  • Date of Birth

 

Tax File Number

The Tax File Number can be entered on the Taxes window (Edit Employee > Payroll & Compensation Info > Taxes) of the employee profile.

Commencement Date

The commencement date is the Hire Date field in the Employment tab of the employee's profile.

Date of Birth

The date of birth is the Date Of Birth field in the Personal Info tab of the employee's profile.

 


Nominating an employee for the JobMaker Credit subsidy

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

As well as this, 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 reporting period.


Setting up an allowance item for JobMaker Credits

In order to report an employee for JobMaker Credits, you will need to add allowance items to your Reckon Accounts company file.

JMHC-NOM

JMHC-NOM is used to nominate an employee for JobMaker Credit.

JMHC-PXX

JMHC-PXX is reported for each JobMaker Credit period to claim the subsidy.

JMHC-RENOM

JMHC-RENOM is used when an employee that is eligible leaves and then returns to the business.


Steps

You can follow the same steps to create the required Allowance Items.

It is extremely important that you name the item exactly as documented to prevent your payments from the ATO being delayed or unavailable to be processed.

  1. Go to Lists > Payroll Item List
  2. Click on Payroll Item drop-down menu > New
  3. Choose Addition in Payroll item type window and click Next
  4. Type the name as JMHC-PXX (used in this example) in Name used in payments and payroll reports window and click Next. You will need to replace "XX" according to the JobMaker reporting period the employee became eligible for the subsidy. In the below screenshot, we have used the first period's number (P01) as an example.

    For JMHC-NOM and JMHC-RENOM allowance items, you do not need the reporting period however you will need to enter the name as JMHC-NOM and JMHC-RENOM for each of the Allowance type item.
    It is extremely important that you name the item exactly as documented to prevent your payments from the ATO being delayed or unavailable to be processed.
  5. 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.
  6. From Tax tracking type window, choose Allowances - Other
  7. 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 JobMaker Credits of eligible employee(s).
    As the amount for this payroll item will be $0.00, tax is irrelevant.
  8. Choose Neither in Calculate based on quantity window.
  9. Enter 0 for the rate in Default rate and limit window.
  10. Do not select any Super item(s) in Inclusions window.
  11. Click Finish to complete setting up this payroll item.


Processing a pay run with a JobMaker Credit nomination

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

Nominating an employee

To nominate an employee, the JMHC-PXX and JMHC-NOM allowance items must be included in a pay run to report which period the employee became eligible. In the below example, Ken Kerekes 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).

The relevant JMHC-PXX item needs to be selected on at least one pay within each JobMaker Credit reporting period the employee is eligible for.

Once the item is added, complete the pay run and report the Single Touch Payroll report as per your regular business process. This will inform the ATO you wish to claim JobMaker Credits for this employee.


If an eligible employee leaves the business

If an employee leaves the business, you must enter the Release Date field in Employment tab of the employee's profile. 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.


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. You also need to add the JMHC-PXX to report that the employee was valid for that period.

Once these items are included on a pay run and reported via Single Touch Payroll, the employee will be re-nominated with the ATO for the JobMaker Credits subsidy.

The relevant JMHC-PXX item needs to be selected on at least one pay within each JobMaker Credit reporting period the employee is eligible for.

How did we do?

Related Articles

Powered by HelpDocs (opens in a new tab)

Powered by HelpDocs (opens in a new tab)