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PKF New England North West

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Case Study Two - JobKeeper Payment - Variation of Wages / Hours

17 Apr 2020

Mick’s Metal Emporium has had a decrease in turnover of 30%. Mick had reduced some employees hour and wages by 20% and stood down other staff members.

  • Billy was earning $1,600 per fortnight pre-crisis and after a 20% reduction is now earning $1,280 post crisis (a decrease of 20% or $320).

Billy

  • Mick will need to pay Billy at least $1,500 per fortnight (a top up of $220 per fortnight).
  • Super contributions are required on the wage of $1,280 per fortnight but not on the $220 top up.
  • Mick could choose to make super contributions based on the $1,500 per fortnight paid.

OR

  • Mick could boost Billy back to the pre-crisis wage of $1,600 per fortnight (so there is a top up of $320 per fortnight).
  • Super would be required on the $1,280 per fortnight but not on the top up of $320 per fortnight.
  • Mick could choose to make super contributions based on the $1,600 per fortnight paid.
  • Mick does not need to pay Billy the agreed reduced remuneration of $1,280 per fortnight plus the Job Keeper subsidy of $1,500 per fortnight on top of that (e.g. $2,780).

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