From 1 July 2021, closely-held employee information needs to be reported to the ATO. This article will detail the steps in Wagemaster.
Closely Held Payees
From 1 July 2021, closely-held payee information needs to be STP reported to the ATO.
A closely held payee is an individual who is directly related to the business entity from which they receive payments. They can be a family member of a family business, directors or shareholders of a company or beneficiaries of a trust.
Closely Held Payees in Wagemaster
Report payments on or before the date of payment
Reporting these employees, the same as normal (Arm’s Length) employees whenever you make payment, report via an STP pay event on or before each payday. In reporting this way, the general rules for reporting in STP apply.
Report closely held payees on a quarterly basis on STP Update Event
Using this option, employees will be STP reported via Update Event. Payment to employees is expected to be done outside of payroll
Using the closely held payee option in WageEasy
Within the employee file, navigate to Payments > Tax, select the Closely Held Payee checkbox
From STP > STP Update, all Closely Held Payee employees can be selected to be reported only.
Only employees who have been ticked as closely held payees will be reported.
Refer to the ATO website for more information here.