In response to the COVID-19 crisis, the ATO has extended the exemption deadline for “Closely Held Employees” to be reported via STP from 1st July 2020 to 1st July 2021.
There is an exemption for small employers (those with 19 or fewer employees) meaning they do not need to report what we call “closely held payees” through Single Touch Payroll enabled software until 1st July 2021.
A closely held (related) payee is an individual 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
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.