Payroll Giving, also known as ‘Workplace Giving’ is a simple, efficient and flexible scheme, which allows you to donate to any NZ registered charity with a direct deduction from your wage.
Payroll giving allows employees to ‘give as they earn’ by making donations directly from their pay to approved donee organisations. For every dollar an employee donates they receive a third back as a tax credit in the same pay period.
The tax credit for payroll donations is 33.3 cents for every dollar donated. If you make a donation through payroll giving you’ll receive the tax credit in the same pay period.
Because payroll giving is voluntary, employers have the choice of whether to offer the scheme to their employees. Donations are made through the employer’s payroll system.
The employer deducts any donation from their employee’s pay, reduces their PAYE by the appropriate tax credit, and then forwards the donation to the chosen donee organisation.
Depending on how the scheme is set up, the frequency, amount and donee organisations chosen by employees can change at the employee’s discretion.
The Soil & Health Association is a registered charity, so you can choose to use Payroll Giving to donate to us regularly – you’ll be helping us to create an organic New Zealand.
For full information on Payroll Giving visit the IRD website