Payroll Giving - Donating To Charity From Each Pay

Make donating easy through Payroll Giving - the donation from each pay gives an immediate 33.33% tax credit. Here's how this works:

Updated: May 2024

Assist your staff to support those who support others with a voluntary donation from each pay.

Payroll Giving allows for an immediate 33.33% tax credit on all donations to registered charities. The credit reduces the amount of PAYE.

In this article:

• Things to Remember About Payroll Giving
• How to Manage Payroll Giving in Thankyou Payroll
• Useful Links and Further Resources

Things to Remember About Payroll Giving

Payroll Giving is awesome, for charities and employees who donate alike as it keeps costs down and makes donating simple and hassle-free. Thankyou Payroll manages the admin, filing and transfer of Payroll Giving donations to the charities - easy as pie. There are just a few things to keep in mind:

• Payroll Giving donations run in each pay. Delete the donation from the Employee Profile to stop making that donation.
• Employees can donate to multiple organisations. The list of charities currently donated to is shown in their Employee Profile. (See next section)
• The list of charities to donate to consist of IRD-approved charities. You can check if a charity is on the IRD-approved charities list by following this link.

If the charity does not appear in our dropdown, please email help@thankyoupayroll.co.nz with the following information and if it is on the IRD-approved charities' list, we can add it as an option: Registered name of the charity Contact email and contact person for the charity The charity's bank account information

• Thankyou Payroll transfers all Payroll Giving donations to the appropriate charities once a month.
• Employees may choose to donate anonymously if desired.
  • If they attach their names to donations, their details are attached to the information email sent to charities with the donation.
  • If they choose to donate anonymously, their details will not be sent even if the charity requests it.

Setting up Payroll Giving

Payroll Giving donations are entered and updated in the Employee's Profile - Payroll Giving tab. They will then be automatically included in each timesheet.

Let's take a look at setting up a donation:

1. Choose if the donation is anonymous or not.
   1. Select 'Yes' if the employee wishes to be anonymous. Their details will not be sent to the charity.
   2. Select 'No' to have the employee's details sent along with their donation.
2. Start typing the name of the charity in the top box. Our charities' database will appear in the box below.
   1. Select the charity from the list.
   2. This list is in alphabetical order, so if the charity you are looking for does not appear, email us as per the above information.
3. Enter the amount to be donated from every pay in this block.
   1. This will be taken from every pay so make doubly sure about the amount your employee wants to donate.
      *For example, if your employee wants to donate $40 a month (in total):
      1. For weekly pay cycle, enter 10 in the block ($40/4 weeks) 
      2. For fortnightly pay cycle, enter 20 in the block ($40/2 weeks) 
      3. For monthly pay cycle, enter 40 in the block ($40/1 month) 
4. Press the 'Update' button to save this donation.
5. The list of charities this employee is currently donating to is shown here.
   
   1. The charity name is first, with the donation amount second.
      e.g. this employee also donates to
      - Cancer Society of NZ, Wellington Division $10, and
      - Forest Birds Endowment Fund $15
6. To delete a donation, click this 'Delete' button.

Note: Donations will appear in the order they are loaded into the system. They are deleted in reverse order, e.g last entered, first on the delete list. You may need to reload any donations you wish to retain.

What will I see in the employee's timesheet?

The system adds Payroll Giving donations to the Pay Summary of each timesheet:

1. The combined total of all Payroll Giving donations is displayed in the Pay Summary.
   1. This employee is giving to three different charities as shown in their Employee Profile above. The total of their donations per pay is ($15 + $10 + $15 =$40 per pay).
2. The immediate tax credit of 33.33% is calculated and added here. This credit reduces the employee's PAYE.

Useful Links and Further Resources

• Information on tax credits for donations, as well as max amounts - IRD website
• How Payroll Giving works - IRD website