Why should an employer offer payroll giving?
Payroll giving creates a win-win opportunity for employers, employees and their communities. Through payroll giving, businesses are able to demonstrate their commitment to their customers, clients and communities in a practical way. Because payroll giving is voluntary, employers have the choice of whether to offer the scheme. For more information about the benefits of payroll giving, check out page 5 of the Payroll Giving Implementation Guide for Employers.
What’s involved in setting payroll giving up?
As an employer, if you decide to offer payroll giving to your employees you will need to make some decisions about how the scheme will operate within your organisation. Check out the Employer section for more information.
How do I know if my employer’s payroll system is set up for payroll giving?
Check with your payroll provider to ensure that the calculation of payroll giving donations and tax credits has been enabled within your payroll system. A number of payroll providers have established processes specifically to help their clients manage payroll giving donations efficiently, so it’s important to ask your provider how their system can facilitate the payroll giving process for both your payroll personnel and employees who wish to use the scheme.
How do I know if an organisation is eligible to receive donations through payroll giving?
You can check if an organisation is eligible to receive donations through payroll giving by searching the Inland Revenue Donee Organisations List. For more information see Who can I give to?
Can I make a one-off donation through payroll giving?
This will depend on whether or not your employer has set up their payroll giving programme to allow one-off donations. Although an employer may decide not to allow one-off donations through payroll giving as general rule, they may still allow one-off donations to occur for a specific cause such as a crisis appeal.
Why should I give through payroll giving as opposed to other forms of donating?
Payroll giving is immediate, simple and rewarding. People donating through payroll giving don’t need to retain receipts and wait to file an annual claim form to get their donation tax credit. Payroll giving means the donation and the 33% tax credit happen immediately.
Payroll giving enables you to support an organisation on a regular basis. For the organisation receiving the donation, payroll giving is an efficient, low-cost way to raise funds and receive regular income support.
Payroll giving isn’t available in my workplace. How can I encourage my employer to participate?
Discuss payroll giving with your employer to understand their hesitations about the scheme and explore the different ways that payroll giving could be implemented within your workplace. Check out the Employer section for further information about what’s involved in setting up payroll giving.
My employer is encouraging staff to support a cause through payroll giving. Do I have to participate?
No. Payroll giving is voluntary for employees. While your employer may encourage you to participate, there is no requirement for you to do so.
If I donate through payroll giving, can I keep my contact information private from the organisation receiving the donation?
This will depend on how your employer chooses to operate payroll giving and how much information you choose to share with the donee organisation. There is no requirement for the employer to pass on your contact information to the donee organisation you donate to through payroll giving, however they may choose to do so with your permission. Speak to your employer about how this aspect of the scheme will operate in your workplace.
How can I claim my tax credit for donations not made through payroll giving?
If you have made financial donations outside of payroll giving to donee organisations you can claim a tax rebate by submitting a Tax credit claim form (IR526).
For more information see Employer & Employee Guides