Payroll giving is where, at an employee’s request, an employer takes money out of their pre-tax salary to donate to a cause/s of the employee’s choice. This is a great way to give regularly and effortlessly, and because it’s pre-tax, it costs you less! So - depending on your tax bracket - a $10 donation each month could only cost you around $7-$8.
Benefits for the donor:
- Immediate tax relief on your donation: No need to wait until tax time
- Costs you less as its pre-tax
- Easy to set up and once enabled, you can ‘set and forget’
- You can give any amount from $2, which is the ATO minimum for tax relief…that’s less than a cup of coffee
- You can give to any charity you wish to support, giving you complete ‘voice and choice’ to support what matters to you.
Both the employee and employer need to enable payroll giving for donations to take place.
Once your company has enabled Payroll giving, setting up for own pledge is simple:
- From your Company profile, click the Setup payroll giving button or from your personal dropdown menu, select Settings and then the Payroll giving tab
- You'll see information from your Company regarding your Payroll giving program - make sure you read this as it could contain key information about your program
- Below this, check the Enable Payroll giving box; if you've been preloaded by your company, your Employee number should auto-populate but if not, check your payslip or ask your Payroll administrator for this - it is mandatory to participate in payroll giving.
- Finally, select the charity/s you want to donate to from the dropdown box (or enter the first few letters of their name), and add your pledge amount which is a MONTHLY pledge (even if you're paid more frequently than monthly)
- If your Company runs a Donation Matching program, check the matching box if you'd like your company to match your donation.
- If you have more pledges to add, follow this process, and when done, click Save...you can now 'set and forget' and your payroll team will take care of the rest.
A Payroll giving recipient may require a reference number from the company or donor sending funds. For example, child sponsorships often need the child's name as a reference number to reconcile payments to the correct donor. Charities have the option to request a reference and if they do, you'll need to input that reference when you sign up to payroll give to them.
You also may see a 'Money goes towards' entry next to a charity. This means donations go towards that specified project or area of support, usually specific to your organisation, i.e. a new garden for a local hospice, or a particular disaster relief program for an aid charity.
Note the Charities available to you have been selected by your Company. Don’t see what you want? Use the Suggest a cause form available from your personal dropdown menu and tell us who you want to see in that list, and we’ll see what we can do.
Want to make changes in future? Easily done. The dustbin symbol will remove the associated donation, or if you want to opt out entirely, just uncheck the Enable check box.
Payroll giving donations apply to your following month’s salary. No changes to your pledges are possible after month end, when each month's pledges are locked down. Reports are available to your payroll team on the 3rd of the month, so depending on your pay cycle, changes you make may not be reflected until the following month’s payroll. If in doubt, check in with your payroll team.