$2,000. $2,000 for every new employee in your business. Small Business Grant (Employment Incentive Scheme) Small Business Grant 10/05/2016

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1 Small Business Grant (Employment Incentive Scheme) $2,000 for every new employee in your business Small Business Grant New jobs created from 1 July 2015 to 30 June 2019 Maintain Full Time Equivalent (FTE) increase for at least 12 months $2,000 Grant after the first anniversary date and is paid via EFT Grant available for full-time, part-time and casual jobs Page 2 1

2 Who is eligible? New job Eligible business Employment maintained for one year NSW employee A job that increases your number of Full Time Equivalent (FTE) employees in NSW Employer with ABN Not liable for Payroll Tax Employment starts on or after 1 July 2015 Must always be a person in that job Vacancy does not exceed 30 days Works wholly or mainly in NSW Page 3 Who is not eligible? Businesses that are liable to pay NSW payroll tax Contractors, agency workers and people who may have worked for you in the last 12 months Continuation of previous employment merger, takeovers* Person for whom you are already entitled to other State assistance Businesses that would otherwise be exempt from NSW payroll tax Sole traders engaged in their own right *Note: Transfer of eligible employees between group members or when there is a merger or takeover is allowed. Provided the original employer would have been eligible for the grant had they not transferred the employees, the new employer will also be eligible. Page 4 2

3 How do I apply? Register online within 60 days after the employment commences Register at Provide new employee details: Name DOB Start date Position Location Calculate NSW FTE (pay period prior to new employee starting) Page 5 NSW FTE employees on a particular date FTE F A/B Calculate manually or use the online application F = number of full time employees A = number of hours worked by your part time NSW employees in the preceding pay period B = average number of hours worked by your full time NSW employees in the preceding pay period Example: J Citizen starts work on 1 September FTE excluding new employee: /35 = 4.5 As at 1 September 2016, the FTE has to be higher than 4.5 to lodge a claim Page 6 3

4 Claiming the Small Business Grant When: With in 60 days after the anniversary date (don t wait for the end of the financial year) How: Lodge a claim online and provide EFT details Note: The grant is pro-rated for part-time and casual jobs. Page 7 FAQs I didn t know about this grant and my business hired someone new after 1 July Should I lodge a late application form? Yes. OSR has a discretion to accept late application forms. Do I include my interstate employees in my FTE calculation? No, only count employees that work wholly or mainly (more than 50 per cent) in NSW. What is the grant period? The grant period is the period between commencement of the new job and that jobs 12 month anniversary period. If I make a casual employee permanent can I apply for the grant? You can only apply for the grant if that casual employee started working for you on or after 1 July 2015, and is a new employee. Page 8 4

5 FAQs Does the same person need to stay in the new job throughout the grant period? No, the same person does not need to be in that position at the anniversary date. However, to continue to be eligible for the grant, the job must not be unoccupied for a period longer than 30 days. You must provide the details of the new person in the original position via the online edit function What if I am a sole trader or partner in a partnerships? A sole trader or partnership business can only claim the grant for people they employ from 1 July Sole traders or partners of a partnership cannot claim the grant on themselves What if I employ an apprentice or trainee in a new job? The employment of an apprentice or trainee in a new job will be entitled to the grant if all other conditions are met What if I become liable for payroll tax after I register a new job for the grant? During the 12 month employing period of a new person, your business must not have a payroll tax liability as at 30 June of that financial year in order to receive the grant. Please contact OSR if your business falls into this situation, as you may be entitled to the payroll tax Jobs Action Plan rebate. Page 9 Small Business Grant Supporting Evidence When you register for the grant, you do not need to provide any supporting evidence. However, you must, provide supporting evidence when claiming for the grant. New jobs/ new employee Grant is paid after the first anniversary date $2000 Grant Minimum employment period is 12 months Business not liable for payroll tax Supporting evidence may include but is not limited to: Most recent Business Activity Statement (BAS) Personnel or wage records WorkCover records Page 10 5

6 More information Page 11 NSW Payroll Tax & the Jobs Action Plan rebate Page 12 6

7 NSW Payroll Tax Wages' above $ NSW tax-free threshold Shares and options Salaries and Allowances Apprentice/ trainee payments Rate is 5.45% Threshold reduced by: Interstate wages Part year employment Leave and Termination payments Wages Directors fees and contractor payments Business groupings Fringe benefits Super, Bonuses and Commissions Page 13 Jobs Action Plan Rebate Incentive to create new jobs in NSW How to apply and claim All new jobs from 1 July 2011 to 30 June 2019 Up to $5000 payroll tax rebate Paid in two parts after first year ($2000) and second year ($3000) Complete online application within 90 days of hiring a new employee (discretion) Provide details of new job and FTE Lodge claim within 30 days of anniversary Eligibility New employee/position Employment maintained for two years Employee works mainly in NSW Page 14 7

8 Office of State Revenue For more information, call or visit Page 15 8