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PKF New England North West

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PKF NE NW News

Case Study Four - JobKeeper Payment - Redundancy

17 Apr 2020

Archie owns a fish and chip shop. With the rules around COVID-19, Archie made the decision to make all of his employees redundant. 

Following the JobKeeper announcement, Archie has re-engaged his employees.

  • Archie needs to continue to engage with the employees and pay them a minimum of $1,500 per fortnight.
  • The government will then pay Archie a subsidy of $1,500 per fortnight monthly in arrears.
  • No Super is required to be paid in respect of the payment made.
  • As long as the redundancy was genuine at the time, it is expected this would not change the tax treatment of the payments made as at the time there was a genuine redundancy and there was no agreement to re-employ at the time of making that decision.
  • It is hoped the that law when passed will provide clarification here.

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