Unpaid wages for director / owner when closing business

(Enthusiast)Enthusiast

7 Apr 2026

Situation:

There are no debts in the business, including all external creditors, the ATO and Super at this time. There is only 1 employee in the business and always has been, myself as the director / owner.

There are some unsubmitted timesheets / unpaid wages to be paid to myself.

Question:

If I was to shut the business down, would I first need to process these payrolls and pay the wages, along with the super and payg that goes with it, or because I am the owner I don’t need to?

Other articles:

I did read the article named - "Do I need to report "unpaid wages" in BAS lodgement and income tax return?"

This somewhat answers the question, but I would just like to know in the case of closing the business as well.

Thanks ATO Community.

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Most helpful reply

KaraATO

(Community Support)Community Support

8 Apr 2026

Hi @Wealth29,

When closing (deregistering) your business, you still need to process any unpaid wages for yourself as a director‑employee. This includes reporting the payments through STP, withholding PAYG, and paying the required super guarantee.

You’ll need to finalise payroll, lodge your final BAS, and make sure all super obligations are paid before closing the company. The company can generally claim a deduction for the wages if these obligations are met. You’d then include those wages as assessable income in your personal tax return, the same way you would for any other employment income.

For help with these final steps, you can refer to our guidance on closing your business or speak with a registered tax or BAS agent.

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YellowPotato

(Taxicorn)Taxicorn