Hi 4basnets,
Yes, that is correct that from 1st July 2021 that any business with 19 or less employees that pay closely held employees are obligated to start reporting Single Touch Payroll (STP) events.
There are three options that you can choose to report STP for closely held employees:
- Report actual payments on or before the date of payment (same process as reporting STP for regular, arm’s length employees)
- Report actual payments quarterly (report payments at the same time when BAS is due)
- Report a reasonable estimate quarterly (report amounts equal to or greater than a percentage of gross payments and tax withheld from the latest year, across each quarter)
If you've classified an employee as closely held and it is showing as $0 on previous events you can create and lodge an update event. This will include the incorrectly classified employee and ensure they are being reported.
For more detailed information, you can check on this article: Lodge Single Touch Payroll (STP) events for closely held employees
Let me know if you have any other questions. Have a nice day.
