Payroll Giving – what is it?
Payroll Giving enables employees to donate money to registered non-profit organisations through their company’s payroll. This initiative provides tax and administrative benefits for employees while giving them the opportunity to “make a difference” to a charity of their choice by donating directly from their pay.
Pillars is an approved IRD “Donee” charity which means you can donate directly from your pay. By making a regular donation you are helping to raise much needed funds for Kiwi kids who have a Mum and/or Dad in prison. These children are too often living in poverty and are far less less fortunate than others.
Benefits for employees
Payroll Giving makes donations to Pillars easy and eliminates the need to hold onto receipts each year and make rebate claims. Speak to your Payroll Officer about making a charitable donation to Pillars. Your employer can deduct your donation from your pay which reduces your PAYE by the appropriate tax credit, and they then forward the donation to Pillars Incorporated.
Giving a regular donation through your pay, gives you the opportunity to regularly gift as much or as little as you like each time you are paid a salary or wage. You do not have to set up any automatic payments or direct debits through your credit card or bank account, your payroll will take care of this. You don’t have to wait until the end of the tax year to claim rebates as this is done instantly when you make a donation.
Some workplaces offer encouragement to their staff by matching donations dollar for dollar, so it might pay to ask?
Benefits for employers
Payroll Giving is a low cost and simple way to support employees who make donations to their charity of choice, which can be of mutual benefit to both employers and employees by giving back to the community.
You can only offer Payroll Giving to your employees if you electronically file your IRD employer monthly schedule and deduction form.
Visit the IRD’s payroll giving page or download the Payroll Giving Guide (IR617)
If you or your employees wish to donate to Pillars Inc via Payroll Giving please email email@example.com to get our bank account details and reference requirements.
You will not be given receipts for your payroll donations. Individual employees will not be issued with receipts as the tax credits for donations made as part of payroll giving will be immediate, in the form of reduced PAYE. Tax credits will not be eligible to be claimed again through the end of year tax credit claim form (IR526).
For more information please email firstname.lastname@example.org or 021 300 569