Closely Held Payees (optional)


(from the ATO's Business Implementation Guide)



Closely Held Payees – New - a Payee who is directly related to the entity, from which they receive payments, such as family members of a family business; directors or shareholders of a company; beneficiaries of a trust. The concept of closely held Payees flows on from existing Payment Summary Annual Report (PSAR) concessions. All other Payees of an entity (known as arm’s length Payees) must be reported by the statutory due date. Payers with this class of Payee are eligible for the following concessions:

Where a payer is utilising either of these concessions, the income must be reported under this income type. This income type only applies to SAW income. Where a Payer is utilising the deferred lodgment concession, they may report more regularly if they choose to do so. A Payer may report YTD amounts for any closely held Payee under this income type, even if they do not access the concession. This reporting concession does not relieve the Payer of their PAYGW payment obligations, including the due date of payment.


Optional

This Income Type is optional. You do not have to identify an employee as Closely Held. It is only required where you want to claim concessional treatment as outlined above.



STP Creator - MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. STP Creator will extract the details from the Employee's Card in MYOB and this can be used to pre-fill the selections. Also if changes are made to the Employee Card, you will be required to update the Employment Details screen to ensure it reflects the changes.



STP Creator - non MYOB Users

In STP Creator, the above information is entered/selected on the Employment Details screen, accessible from the Payee Details screen. .



Note: Only one Income Type can be set for each Payee ID. If an employee changes Income Types during a payroll year, create a new Payee ID for the new Income Type. For example if an employee started as a Working Holiday Maker and later became an Australian Resident, use one Payee ID for the Working Holiday Maker Income Type and a different Payee ID for the Salary and Wages Income Type.