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Re: STP for Trust Distribution & Dividend

Devotee

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Replies 2

Do we have to report Trust Distribution to beneficiaries of a family trust through Single Touch Payroll?

Do we have to report Dividend payment to shareholders through Single Touch Payroll?

 

ATO website says closely held payeers include shareholders of a company and beneficiaries of a trust. However I have read some articles saying Dividend payment and trust distribution are not subject to STP, only directors fees, allowances, salary and wages are.

 

Which one is correct?

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STP reporting for closely held payees

A closely held payee is an individual directly related to the entity from which they receive payments.

For example:

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

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Devotee

Replies 0

No you don't

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Devotee

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No you don't

ATO Community Support

Replies 0

Hi @MS ,

 

@MCA_Accountants is correct. I'll just add a little further info:

 

Under STP, some payments subject to withholding are in scope and some are out of scope:

  • payments that are generally not paid through a payroll process
  • payments made by payers to recipients that are generally not their employees

Trust Distributions to beneficiaries of a family trust and Dividend payments to shareholders are not reported through STP.