About Payroll Giving

Payroll giving is a voluntary initiative that enables employees to make donations to charities, schools and other community groups through their employer’s payroll system.  In other words, you can give as you earn.

Donations made via payroll giving receive an immediate PAYE credit of 33% of the donation amount. This means if you donate $15, it actually only costs you $10.

Since the scheme was introduced in January 2010 almost $14 million has been donated through payroll giving to community organisations around New Zealand.

Payroll giving works for all involved.

For recipient donee organisations, payroll giving lowers the cost of fundraising and provides a steady revenue stream.

For employees, the donations they make are deducted before they receive their pay. The process is seamless and they receive an immediate tax credit of 33% of the donation value by way of a reduction in PAYE.

For employers, payroll giving supports recruitment and retention strategies, and demonstrates support for the things that matter to employees outside of the workplace.

Read on to understand the role of the employer and employee in operating a payroll giving programme.