HAVE YOU HEARD ABOUT PAYROLL GIVING?
What is it?
From the 7th January 2010 a new voluntary Payroll Giving scheme has been introduced for New Zealand workplaces. It is a scheme that gives employees the opportunity to donate to an approved donee organisation direct from their pay.
The scheme means that employees will receive a tax credit of 33.3% on all "payroll giving" donations at the time the donation is made rather than having to wait until the end of the tax year. This means that for every $3 donated a $1 tax credit is applied and therefore the donation has only actually cost the employee $2. Importantly though the chosen Charity or community organisation will receive the full $3 donation.
In the past, donors had to save receipts and then submit them at the end of the year to obtain a tax refund. This system is cumbersome and often refunds are not claimed. Payroll giving will be more convenient for donors. You simply choose the organisation that you want to give to off a list of verified donee organisations. The donations are then transferred through to your chosen organisation, and donors will get their tax credit straight away.
How do you get involved?
If your organisation would like to be involved in the payroll giving scheme, you will need to be registered as a donor organisation with the Inland Revenue and you will need to provide the Ministry of Social Development with a set of information which will allow the set up of systems to transfer donations.
Another organisation, the Payroll Giving Foundation, is working with industry partners to supply a simple and easy system that will enable willing employees to make payroll giving requests and changes with as little effort as possible.
The Waikato Breast Cancer Trust is a registered donee organisation with both the Payroll Giving Foundation and the Ministry of Social Development.
Help us make a difference by choosing the WBCT as your payroll giving organisation.
Many Thanks
