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Payroll giving

Help your employees support a good cause.

From 7 January 2010 you will be able to offer a new voluntary scheme called payroll giving to your employees.

How it works

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.

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.

A donee organisation is an organisation that has Inland Revenue-approved donee status. Anyone on the approved list is eligible to receive payroll giving donations.

The employer's role

The employee's role

It's easy online

Payroll giving is available to employers who file their EMS (IR348) and EDF (IR345) electronically using ir-File.

Using ir-File can save time and paperwork, and it's available to all employers.

ir-File will be updated in December 2009 to include payroll giving. You can offer payroll giving in your workplace from 7 January 2010.

Try our interactive ir-File demo

Resources to help introduce payroll giving in your workplace

Resources are available for employers who'd like to introduce payroll giving in their workplace: