Closely held employees

Tracey_H
MYOB Moderator
6,968 Posts
MYOB Moderator
MYOB Moderator

6,968Posts

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Closely held employees

Hi everyone

 

From 1 July 2021 it is an ATO requirement that closely held employees be reported through STP. 

 

Who is a closely held employee?

A closely held employee is someone who's directly related to the business, company or trust that pays them. We do recommend checking with the ATO or your accounting advisor if you are unsure who of your employees are closely held, however, some examples are:

  • family members of a family business
  • directors or shareholders of a company
  • beneficiaries of a trust.

How do I set up a closely held employee?

Closely held employees need to be set up as you would other employees. Need a refresher: AccountRight | Essentials. You don't need to indicate that the employee is closely held.

 

You will need to pay PAYG Withholding amounts and Superannuation Guarantee Contributions by the due date.

Important: the Superannuation Guarantee Contribution rate increases to 10% from the 1st July 2021.

 

How do I pay a closely held employee?

 

For detailed instructions refer to these help articles: AccountRight | Essentials

 

At the end of year

Your accountant will work with you at the end of the payroll year to ensure your books are balanced. For example, you might need to allocate any remaining balance in the payroll clearing account which hasn't been processed through payroll.

 

As always, if you do need help please start a new post. Our team of MYOB technical support staff and the generous MYOB Community is always happy to help.

Cheers,
Tracey
Previously @bungy15

MYOB Community Support

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