Payroll giving is a very efficient way to make charitable donations, allowing a donor to get the benefit of a tax credit at the time of making the donation.
Unlike normal donations, the tax credit is automatically applied in the pay period. This means that no action is required to claim the tax credit.
With Givealittle payroll giving you can only support those organisations with donee tax status. This is because the 33% tax credit is applied immediately from your employer through the payroll system.
While it is a great thing for community minded employers to do, there is no legal requirement for employers to offer payroll giving to their employees. The IRD’s payroll giving scheme is only available to employers who file their EMS (IR348) and EDF (IR345) electronically using ir-File, and Givealittle makes it easy for employers to support the initiative with only one deduction required to facilitate a wide range of donation options for employees. Further information about filing electronically via ir-File is available from Inland Revenue.
Full details about Payroll Giving can be found at the IRD website.
Find out how to set up a Givealittle Payroll Giving plan here.