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Single Touch Payroll (STP) for Closely Held Payees

Single Touch Payroll (STP) for Closely Held Payees

The ATO have announced that they will allow deferral of Single Touch Payroll (STP) Phase 2 transition (for closely held payees).

Where employers can start reporting from 1 January 2022, the ATO will support and encourage them to transition.

If employers can start reporting the expanded data by 1 March 2022, they will be considered to have started on time.

Amounts paid to closely held payees include wages, allowances and directors fees.

Closely held payees are those individuals who are directly related to the business i.e. family members of a family business, directors/shareholders of a company or beneficiaries of a trust.

To be able to report through STP you will need a software solution to be able to complete this. The ATO has compiled a number of options for STP reporting, please follow the below link to access:

https://www.ato.gov.au/Business/Single-Touch-Payroll/In-detail/Software-solutions-for-Single-Touch-Payroll/