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  • Small employers – closely held (related) payees

    There is an exemption for small employers (those with 19 or fewer employees) meaning they don't need to report what we call 'closely held payees' through Single Touch Payroll-enabled software until 1 July 2021.

    A closely held (related) payee is someone who is directly related to the business, company or trust that pays them, such as:

    • family members of a family business
    • directors or shareholders of a company
    • beneficiaries of a trust.

    In April 2020, we extended the exemption deadline from 1 July 2020 to 1 July 2021.

    If you have any other employees (also known as arm's length employees) they must be reported through Single Touch Payroll on or before each payday unless you are eligible for a micro employer (those with one to four employees) reporting concession.

    Next step:

    Voluntary STP reporting for closely held payees

    You can choose to voluntarily report your closely held payees’ payroll information through Single Touch Payroll each time you make a payment (or quarterly if you are eligible for the micro employer concession), just as you would for your other employees.

    You won't need to provide payment summaries to your closely held payees or a payment summary annual report to us at the end of financial year if you:

    • report through STP
    • lodge your finalisation declaration by the due date.

    Next step:

    Telling us you have closely held payees

    This exemption applies automatically, and you don't need to tell us. However, you should keep records that support your decision.

    Alternatively, if you would like to notify us, you can apply for an exemption through the Business Portal – select Manage employees then STP deferrals and exemptions and then Exemption.

    Your registered agent can also notify us by applying for an exemption through Online services for agents.

    See also:

    Last modified: 24 Jun 2020QC 59387