Have you considered Payroll giving? See the latest update from the IRD
Latest update on payroll giving
Since payroll giving was introduced, close to $17.7 million has been donated directly from a growing number of peoples' pay to their favourite charity or donee organisation.
In May 2014 alone 4,636 employees donated close to $772,200. Because the donations were made through payroll giving, these employees received immediate tax credits totalling just over $257,300. They did not need to wait until the end of the year to make a claim.
Payroll giving and employees
If your employer offers a payroll giving scheme and you want to join, you need to:
1) check the donee organisation you wish to donate to is on our approved donee list
2) give your employer the:
- name of the donee organisation
- amount of the donation you want to make
- pay period, or periods, you want the donation to be made
- the donee organisation's bank account or postal address.
If your employer’s scheme allows, you can alter the frequency, amount and donee organisations you choose to donate to.
How tax credits for payroll donations work
Tax credits for payroll donations are calculated at 33.3333 cents for each dollar donated which is deducted from your PAYE.
Employers are responsible for calculating the correct tax credits for each payroll donation made by their employees.
The tax credit for payroll donations is 33.3333 cents for each dollar donated. Once the tax credit has been calculated, the employee’s PAYE is reduced by the amount of the tax credit.
Author: Jackie Aitchison