Understanding Closely-Held Employees & Small Business STP Reporting
Small businesses, especially family-run ones, require careful attention to payroll for closely held employees, such as family members, directors, and shareholders.
The Australian Tax Office (ATO) mandates that all employers adhere to Single Touch Payroll (STP) reporting requirements regardless of the employee’s relationship to the business.
However, small businesses with fewer than 19 employees have some flexibility in how they meet these obligations. In many cases, small businesses may also have closely-held employees