The ATO has moved the exemption cut-off date for Single-Touch Payroll (STP) reporting back a full year to 1 July 2021 in light of the COVID crisis. This applies to businesses with less than 20 employees.

The ATO defines closely held payees as those directly related to the entity from which they receive payments, including

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

You will still need to report through STP for other (arm’s length) employees.

The only exemption is if they are eligible for a micro employer reporting concession. This allows their registered tax or BAS agent to report on their behalf on a quarterly basis until 30 June 2021.

You can report closely held payees sooner if you prefer, especially if you’re already using STP reporting.

Reporting through STP may also support your JobKeeper payment application and help you meet your monthly reporting requirements. STP reporting enables employers to notify employees of:

• eligibility
• start and finish periods
• amounts the employee has been paid (including any JobKeeper top-up).

Read more about STP reporting for closely held payees on the ATO website.