# Adding your payees
Now that your payroll is set up, the next step is to add your payees.
Locate the *Payees* link on the side panel, then click on the `New payee` button:
Enter your payee's details:
Note that the we currently support two types of payees:
* arm's length employees and
* closely held payees.
It is important to choose the correct type of payee for your scenario, since these are being reported to the ATO under different income stream types:
{% hint style="info" %}
Some concessions are available to small employers making payments to closely held payees, such family members of a family business, directors and shareholders of a company or beneficiaries of a trust, most notable being:
* quarterly reporting and
* finalising later than 14 July.
{% endhint %}
Note as well the `Is director` flag in the screenshot above. Turning this flag ON will enable *Director's fees* payments for this payee.
Once you are done setting up all the payee's relevant fields remember to click `Save` :
Repeat this process for all your payees.
