Small employers – closely held (related) payees

There is an exemption for small employers (those with 19 or fewer employees) meaning they don't need to report what we call 'closely held payees' through Single Touch Payroll enabled software until 1 July 2021.

A closely held (related) payee 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.

In response to the COVID-19 crisis, we have extended the exemption deadline from 1 July 2020 to 1 July 2021.

If you have any other employees (also known as arm's length employees) they must be reported through Single Touch Payroll on or before each payday unless you are eligible for a micro employer (those with one to four employees) reporting concession.

This exemption applies automatically, you should keep records that support your decision. Feel free to contact us.

Voluntary STP reporting for closely held (related) payees

You can choose to voluntarily report your closely held payees’ payroll information through Single Touch Payroll each time you make a payment (or quarterly if you are eligible for the micro employer concession), just as you would for your other employees.

You won't need to provide payment summaries to your closely held employees or a payment summary annual report to us at the end of financial year if you:

  • Report through STP for your closely held employees.

  • Lodge your finalization declaration by the due date.


For the latest advice, information, copy and resources, go to

Feel free to contact us at or (08) 9345 0499.

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