Overview

In 2010 the Government introduced the Payroll Giving concept. This was  to make it easier to donate to charity and to claim back the tax credit at the time the donation is made. When Payroll Giving is used, for every dollar donated to a registered charity, the employee receives an instant tax credit of 33.3333 cents. The employee can see both the donation to their charity and the tax credit that has been applied against their PAYE calculation in their pay packet. Payroll giving is appealing to employees as the tax credit is applied instantly. This is only available if the Payday file is submitted electronically.

Employees can either make a one-off donation or set up a donation to be applied every payday.
The full list if approved done organizations can be found on https://www.ird.govt.nz/donee-organisations/

To use Payroll Giving:

• If using MyPay, the list of company approved charities can be set up by your EasiPay consultant.
• To set up the company's list of charities, request this using the modifications section in Direct Access. You will need to supply the name of the charity along with their bank account. This feature called Charitable, is only available for registered charities who have been approved by IRD.
• Requests can be submitted as part of your employee modifications for the pay period. In these cases, your EasiPay Consultant will need to know for each employee the amount to be donated, the bank account number for the charity and if this is a one off or an on-going deduction.