This article contains some of the frequently asked questions regarding the closely held employees' setup in Wagemaster.
1. Our director payments are not paid through payroll. As closely held payees, do we need to add them to payroll?
It is best to ask the ATO how to treat them as we cannot provide you with how they should be accounted for and/or paid.
2. Currently, our directors payments are paid as "RENT". Do they need to be set up and entered in payroll?
It is best to ask the ATO how to treat them as we cannot provide you with how they should be accounted for and/or paid.
3. Can we opt not to tick closely held payee for a director and report STP each pay period for him?
It is best to ask the ATO how to treat them as we cannot provide you with how they should be accounted for and/or paid.
4. When does closely held payee information have to be ticked? In the new financial year?
Yes, applicable from 1 July 2021 for the 2022 tax year.
5. Is it mandatory to tick closely held employees if they are closely held and they have to be reported to STP quarterly only?
Yes, that is correct. Please see Closely Held Employees Setup & Reporting.
6. I am not sure who I should be ticking the closely held employee box for?
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. You can get more information from the ATO. Please also see Closely Held Employees Setup & Reporting.
7. Where can I find notes about who are classified as the closely held payee?
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. You can refer to the ATO website for more details.
8. If the closely held employee option is ticked and paid throughout the year, should we still report quarterly as an STP update event or just once?
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. You can refer to the ATO website for more details.
Please see Closely Held Employees Setup & Reporting
If you need more information on reporting CHP please contact the ATO.
9. Is closely held employee reporting for companies having more than 20 employees?
Please refer to the ATO website for further details
10.We do weekly payroll but I pay my director only once a month. On the week I don't pay him, I just leave him out for that pay period. What should I do to use the closely held payees option?
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. You can more information from the ATO.
Please also see Closely Held Employees Setup & Reporting.
11. We pay weekly to our employees but my director gets paid only once a month(not a monthly circle). I pay him the first week of the month, after that, I don't process his pay until next month. What should I do to use the closely held payee?
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.
You can more information from the ATO.
Please also see Closely Held Employees Setup & Reporting.
12.If I was a director but also getting paid from the company is that still classified as a closely held payee?
Please refer to the ATO website.
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