Client Example – client has five eligible employees who have been paid at least $750 per week for each required fortnight as outlined by the ATO. The client has lodged the monthly declaration for July 2020 with the five employees claiming for the JobKeeper subsidy for both fortnights in the July 2020 reporting period.
- Confirm the JobKeeper Receipt as Correct
As the client has lodged the July declaration to the ATO with five employees for each fortnight, they should expect to receive a total of $15,000 (5 employees x $1,500 per fortnight for each employee) in relation to the JobKeeper subsidy.
- Creating a JobKeeper Income Account in Xero
To create a new income account for JobKeeper, click on the Accounting drop down box on the blue ribbon at the top of the screen, then select Chart of Accounts.
Click on the Add Account button, which will open a Add New Account pop-up box.
Select Other Income for Account Type and BAS Excluded for the Tax Type. Enter JobKeeper as the Name of the new account and enter an account that you can easily identify what it is e.g. ATO-JK.
- Reconciling the JobKeeper Receipt
The client has now received the $15,000 JobKeeper subsidy on 17 August 2020, which they can see in their bank account in Xero by clicking on the Reconcile Items blue button under the bank account name while on the Dashboard as illustrated below.
The client can now reconcile the transaction to the JobKeeper account in Xero as summarised
#JobKeeper #XERO #ReceiptsInXERO #Accountants
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.