PKF Australia

Accountants and Business Advisers

Case Study Five – JobKeeper Payment – Employees on leave

Stacey’s Florist has stood down all workers. David is an employee that had built up annual leave and agreed with Stacey that he will take his leave at a rate of $1,100 per fortnight instead of $0 pay.

Employees on leave (including maternity leave) are still employed as are stood down workers.

Any payments Stacey makes to her workers are still remuneration paid regardless of whether they are wages for working or accrued leave entitlements being paid.

Stacey can:

  • Stop David’s leave and swap it with the JobKeeker payment. This will increase David’s fortnightly pay to $1,500 and allow him to save the leave for later (as the JobKeeper payments are only proposed to run for six months from 30 March 2020).
  • Keep David on leave and use the subsidy to fund the leave payment of $1,100 and top this up to the government prescribed minimum of $1,500.
  • Pass on part or the entire JobKeeper subsidy as an extra payment to the leave payments. In this case Stacey is still funding the accrued leave owed to David at $1,100 and is also giving him the $1,500 JobKeeper subsidy.

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