Run Your JobKeeper Payments Payroll Using Xero
May 21, 2020
The times we are living in are complicated.
As such we are always looking for workflows we can recommend to make small business owner's lives easier. Xero has introduced some time saving new features to make processing JobKeeper payrolls easier.
Xero has been very proactive in supporting Australian businesses during the Covid-19 lockdown with additional functions and supports to make complex situations as easy as possible. Xero has imbedded tools to automatically help business owners and bookkeepers assess their businesses' edibility for Jobkeeper and other financial support.
In our work with businesses many have questions related to setting up and using JobKeeper payments in payrolls. We have outlined some simple steps to ensure this process is seamless and easy.
Step One – Register For Single Touch Payroll
Most businesses would have heard or implemented Single Touch Payroll by now. This process was made mandatory last year for all businesses with one or more employees. If you have not registered for STP now is the time to do it. It will make processing and claiming JobKeeper faster and easier. Visit the ATO site for more information on STP. Processing payroll is done online through an accounting platform. We will be referencing Xero in this article.
If you are registered for STP the ATO will pre-populate the eligible JobKeeper employees in your accounting system. Without STP you will have to manually enter the eligible employees.
Step Two – Setting UP Payments In Xero
Many small business owners have been confused about how to set up payments using JobKeeper when running payroll. As this is a payment from the government it must be recorded into the payment system with a special item code within Xero’s platform.
Xero Payroll helps to process JobKeeper payments made to workers, including those made before JobKeeper was passed by Parliament. The software creates a pay item so that you can accurately report these payments to the ATO. You just need to add the item to your employee’s payslip when creating your pay run. We have created a short video on how this is done here.
Xero has also provided a way to process the JobKeeper payment and report it to the ATO. Most of this happens seamlessly in the background while you are filing the payments, you don’t have to do anything in addition to your normal process.
Recording JobKeeper payments with STP will do more than help you get support and pay your employees faster. It will ensure that your record keeping during this confusing time is well-documented for any changes that are set to come in the next few months and years.
Visit the Xero blog
for more information or resources. If you have any questions or need help setting up your payroll system please reach out, we are always happy to have a chat
about your needs.
Sign up to our
newsletter here!
newsletter here!
Share This Post
How to Reconcile Your Bank Accounts Properly
The Benefits of Outsourcing Your Bookkeeping
Navigating the End of Financial Year Tax Obligations The end of the financial year (EOFY) can feel overwhelming, especially when it comes to tax obligations. This blog post will help you navigate the complexities and ensure you're prepared. Understanding Key Dates The Australian financial year runs from July 1 to June 30. Knowing the key dates is crucial for planning and avoiding penalties. June 30: End of the financial year. July 1: Start of the new financial year. October 31: Deadline for most individual tax returns (unless lodged by a registered tax agent). Gathering Your Documents Before you start your tax return, gather all necessary documents. This will streamline the process and minimise errors. Here are some essential documents: Payment summaries from employers Bank statements Investment records Receipts for work-related expenses Health insurance details Claiming Deductions You can claim deductions for expenses related to earning your income. Keep detailed records and ensure the expenses are directly related to your work. Common deductions include: · Home office expenses · Self-education costs · Work-related travel · Tools and equipment Seeking Professional Advice If your tax situation is complex or you feel overwhelmed, consider seeking advice from a registered tax agent. They can provide personalised guidance and ensure you meet all obligations
How to Reconcile Your Bank Accounts Properly
The Benefits of Outsourcing Your Bookkeeping
Navigating the End of Financial Year Tax Obligations The end of the financial year (EOFY) can feel overwhelming, especially when it comes to tax obligations. This blog post will help you navigate the complexities and ensure you're prepared. Understanding Key Dates The Australian financial year runs from July 1 to June 30. Knowing the key dates is crucial for planning and avoiding penalties. June 30: End of the financial year. July 1: Start of the new financial year. October 31: Deadline for most individual tax returns (unless lodged by a registered tax agent). Gathering Your Documents Before you start your tax return, gather all necessary documents. This will streamline the process and minimise errors. Here are some essential documents: Payment summaries from employers Bank statements Investment records Receipts for work-related expenses Health insurance details Claiming Deductions You can claim deductions for expenses related to earning your income. Keep detailed records and ensure the expenses are directly related to your work. Common deductions include: · Home office expenses · Self-education costs · Work-related travel · Tools and equipment Seeking Professional Advice If your tax situation is complex or you feel overwhelmed, consider seeking advice from a registered tax agent. They can provide personalised guidance and ensure you meet all obligations
