Paying Eligible Employees
Employees must be paid a minimum of $1,500 (before tax) per fortnight by the employer in order to remain eligible.
We recommend the $1,500 minimum is paid in the employer’s usual pay cycle, and through their existing payroll system.
It doesn't have to match the Job Keeper fortnight from 30 March 2020 to 12 April 2020 and each following fortnight through to 27 September 2020. If the usual pay cycle is monthly, that is fine, employers just need to allocate the 26 fortnights of the minimum $1,500 on a reasonable basis.
Income tax (PAYG W) must be withheld by the employer when paying the employees.
For those employees earning LESS than $1500 per fortnight: Top up payments are not subject to the superannuation guarantee.
In simple terms: The top up portion of employee wages is not subject to Superannuation Guarantee where the employer is to top up the wages to $1500.
EXAMPLE: Mary earns $1000 per fortnight. Mary's employer must pay her $1500 per fortnight as follows:
Earnings subject to Superannuation Guarantee $1,000.00 Super portion $95
Earnings NOT subject to Superannuation Guarantee $500.00 Super portion ZERO
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TOTAL before Tax $1,500.00
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It remains optional for Mary's employer to pay her Super on The $500.00 portion.
Employees must be paid a minimum of $1,500 (before tax) per fortnight by the employer in order to remain eligible.
We recommend the $1,500 minimum is paid in the employer’s usual pay cycle, and through their existing payroll system.
It doesn't have to match the Job Keeper fortnight from 30 March 2020 to 12 April 2020 and each following fortnight through to 27 September 2020. If the usual pay cycle is monthly, that is fine, employers just need to allocate the 26 fortnights of the minimum $1,500 on a reasonable basis.
Income tax (PAYG W) must be withheld by the employer when paying the employees.
For those employees earning LESS than $1500 per fortnight: Top up payments are not subject to the superannuation guarantee.
In simple terms: The top up portion of employee wages is not subject to Superannuation Guarantee where the employer is to top up the wages to $1500.
EXAMPLE: Mary earns $1000 per fortnight. Mary's employer must pay her $1500 per fortnight as follows:
Earnings subject to Superannuation Guarantee $1,000.00 Super portion $95
Earnings NOT subject to Superannuation Guarantee $500.00 Super portion ZERO
----------------
TOTAL before Tax $1,500.00
----------------
It remains optional for Mary's employer to pay her Super on The $500.00 portion.