The JobMaker wage subsidy system can help your company and the economy. Find out what it is and how to apply here!
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JobMaker – the government’s new wage subsidy system – aims to rebuild the economy by encouraging companies to create new jobs and hire more employees. In addition, this program, which focuses on the provision of ‘hire credits’, will hopefully play a role in containing the effects of unemployment caused by COVID-19. Under the program, companies are paid for each new job they create for 16 to 35 year olds over a maximum of 12 months.
What payments do I get under JobMaker?
Eligible Employers are paid to hire each Eligible Employee. However, prices vary depending on the age of the worker.
- Earn $ 200 per week for employees 16-29 years old.
- Earn US $ 100 per week for employees 30 to 35 years old.
Who is eligible for JobMaker?
This payment scheme is for employers. However, some restrictions still apply.
Eligibility to participate requires:
- Registration in the JobMaker Hiring Credit program.
- An ABN.
- Registered for Pay as you go (PAYG) withholding tax.
- Current tax liability.
- Income tax and GST returns will be up to date for two years by the end of the JobMaker period they are claiming for.
- Reporting via Single Touch Payroll (STP).
- Has not requested JobKeeper payments in the fourteen days that started during the JobMaker Period.
- Must also meet the raise and staffing conditions which can be found here.
- Must not belong to any of the ineligible employers listed here.
For more information, please visit the ATO JobMaker website by clicking here.
Requirements for JobMaker
Once the above admission requirements are met, some other important requirements are:
- You cannot claim a jobkeeper, right?
- Any other government subsidy at the same time.
- Aged 16 to 35 years and
- Worked an average of 20 hours a week during the quarter and
- Must have received either:
- Job seeker,
- Youth benefit or
- An education plan.
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How to apply to JobMaker
The application is made via the ATO website. However, it is important to know some important dates and factors during the process. These include:
- Registration for the program opened on December 6, 2020. Therefore, register before the claim date (from February 1, 2021).
- You can claim the payment from February 1st, 2021.
- Further important data can be found here.
- You do NOT have to prove a decrease in income, only the increase in employees in the relevant quarter.
- The employee’s salary information must be reported to the ATO by the employer via the single-touch payroll.
What does JobMaker mean for your company?
With JobMaker, your company can hire more employees, which not only rebuilds the economy and offers job opportunities, but also helps get your business going again. With new jobs and employees, your company could grow, make ambitious changes, and achieve new goals! JobMaker could mean getting your business off to a good start in 2021.
Contact an attorney here for more information or to clarify any information in this article.