Answer
Lightning Payroll provides two checkboxes on the Pay Rates screen for payees who sit outside the normal salary-and-wages reporting stream: Is Closely Held? and Super-only contractor? (no TFN, not reported in STP). Both are AU-only settings.
Closely Held Payees
A closely held payee is typically a family member of a business owner, a director, or another person who is directly related to the business entity. Ticking Is Closely Held? changes the employee's STP income stream to Closely Held Payee (ATO code CHP). Their wages, tax, and super are still reported through Single Touch Payroll ÔÇö the flag signals to the ATO that a quarterly reporting concession may apply under STP Phase 2 rules. Confirm with your adviser or the ATO whether the concession applies before deferring any lodgements.
In the desktop app: open the employee, go to Pay Settings >> Pay Rates, and tick Closely held employee/payee?. The STP Income Stream field will update automatically to Closely Held Payee.
In the online (web/mobile) app: select the employee, navigate to Employees >> Pay Settings >> Pay Rates, and tick Is Closely Held?. Save with OK.
Super-Only Contractors
A super-only contractor is set up in the system solely to receive superannuation contributions. They have no TFN, are not reported in STP, are excluded from PAYG withholding, and are not included in payment summaries or end-of-year processing.
In the desktop app: open the employee, go to Pay Settings >> Pay Rates, and tick Super-only contractor? (no TFN, not reported in STP). Leave the tax file number field blank ÔÇö it is not required or validated for this type of payee.
In the online (web/mobile) app: select the employee, navigate to Employees >> Pay Settings >> Pay Rates, and tick Super-only contractor? (no TFN, not reported in STP). Save with OK. The TFN requirement is waived automatically when this option is ticked.
Once set up, process the contractor's super through the normal pays workflow. For a step-by-step guide see How Can I Pay Super For Contractors Or Non-Employees?
