We’ve put together a few quick and easy to follow video guides in how to correctly record your stimulus payments in Xero
How to record JobKeeper payments
Step 1 – Create a new account for JobKeeper income
https://www.loom.com/share/7dd605b361de40f39868871397e27c63
Step 2 – Reconcile payment from ATO to the JobKeeper income account
https://www.loom.com/share/7ccb72be07274d9398f1cb881228c25a
How to record Cash Boost
Step 1 – Create a new account for Cash Boost income
https://www.loom.com/share/6f015079a4334ab98a67994c57bc7bf8
Step 2a – Reconcile net payment from ATO to ATO income account (Jigsaw will reconcile at EOFY)
https://www.loom.com/share/5b72fa59654f4b91949fa6a5540ffd19
Step 2b – Reconcile gross payment cash boost to ATO liability account (balance sheet) and ATO income account (P&L)
1) Check whether your ATO Creditor account can accept credit payments
https://www.loom.com/share/62edcf1b6dc14e6ba2b21c921d99d7d3
2) Create a Cash Boost income transaction from ATO, and split your payment between ATO liability AND bank account (example is for a $10,000 cash boost to be split against BAS and bank account)
https://www.loom.com/share/6a6edd33a50741788e3f1c9e57756418
How to record NSW/VIC Grants
Step 1 – Create a new account for NSW/VIC Grant income
https://www.loom.com/share/fc1aacb015704693b2ed3e1793537f91
Step 2 – Reconcile payment from ATO to the Grant income account
https://www.loom.com/share/35623245c9f54ba2af0e0f98c6056151
Don’t worry too much – as we’ll be correctly reconciling these when we complete your next BAS / EOFY. If you have any concerns about your JobKeeper, Cash Boost or grants don’t hesitate to contact the team for more information.
FAQs
JobKeeper:
- JobKeeper is paid monthly, as a reimbursement for the last 2 fortnights (September payment will include 3 fortnights in August)
- Every JobKeeper participant is required to lodge a monthly declaration, which will trigger the ATO to release the reimbursement (approx. 14 days from lodgement)
- The forward month projection is your best guess at your future income. It will NOT be held against you if you are incorrect
- Once you reach the required reduction in turnover in a month, you can continue claiming JobKeeper for the entirety of the scheme – even if your sales increase
- Jigsaw Tax does not get notified whether your JobKeeper has been paid. Please let us know if it hasn’t been paid
Cash Boost:
- Every business that is eligible and reports wages at W1/W2 will have the calculated boost applied automatically
- The boost will be initially applied to ATO Integrated Client Account debt. Only excess will be refunded
- The bank details provided for JobKeeper are not applied to Cash Boost refunds. We may have to confirm these again from you
NSW/VIC grants:
- All grant income must be expended on business expenses (non-JobKeeper staff / top-ups, operating expenses such as rent, maintenance etc.)
- Do not claim the grant unless you will be able to show expenditure on operating expenses
- For NSW, we will provide a letter of support and you will be required to lodge documentation with the state Government
- NSW has advised that compliance and verification action will occur after COVID
