Payroll Giving is a great way for your employees to make regular donations to the charity of their choice straight from their salary. It’s an easy and tax free way for them to donate and the deductions are made before tax.
It’s also a great way to improve staff motivation as it shows that you are an employer that cares and who is concerned about their staff's welfare – this in turn will help promote teamwork, staff retention and develop staff relations.
Setting up Payroll Giving in 4 easy steps
- Contact a Payroll Giving agency – the agency will process the donations and ensure they get passed to the right charity. A list of government approved agencies can be found on HM Revenue and Customs (HMRC) website: www.hmrc.gov.uk
- The agency will set you up with everything you need so your staff can start giving. They will provide forms and talk you through each process.
- The employee deductions are made before tax, but after NI contributions. This enables the employee to get tax relief on their donations.
- The Payroll Giving agency will then handle all the administration required for Payroll Giving and distribute the donations to the employee’s chosen charity.
By matching what your employees give delivers a strong message of corporate social responsibility. It will also help increase staff motivation and promote a positive message that you care.