Single Touch Payroll - Closely Held Payees

Rudd Hannay Accountants • June 17, 2020

Single Touch Payroll - Closely Held Payees

The Tax Office has deferred the commencement date of Single Touch Payroll (STP) for small employers with closely held (related) employees until 1 July 2021 as a result of the current COVID-19 crisis. As previously advised, this was due to commence 1 July 2020.

A closely held (related) employee is someone 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 we have identified your entity as a small employer with closely held employees. Accordingly, your STP reporting commencement date has been deferred until 1 July 2021. You must ensure that you have sufficient processes in place to report via STP by this date. This may require an update to your current accounting software.

You can choose to commence STP reporting early if you wish assuming you have the appropriate software in place.
If you have any questions or concerns, please contact one of the team or myself.
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