So what is payroll giving? 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 the employee less! So - depending on your tax bracket - a $10 donation each month could only cost the individual $7-$8. If your business also chooses to match funds, this could mean $20 per month donated to that charity at the cost of just $7-$8 to the employee.
Benefits for you and your employees:
- Immediate tax relief on donations: No need to wait until tax time
- Costs employees less as its pre-tax
- Easy to set up and once enabled, you can ‘set and forget’
- Give any amount from $2, which is the ATO minimum for tax relief…that’s less than a cup of coffee
- Give to any charity/s your business is happy to support, giving your employees complete ‘voice and choice’ to support what matters to them
- Demonstrate that your business cares about supporting what's important to each individual employee, and provide a way to help them do so
- Forms part of your Employee Value Proposition (EVP) as an employee incentive, supporting your employee engagement, attraction and retention goals as part of a Community program.
Using Benojo to track your payroll giving doesn’t require any payroll system integration. What the Benojo platform allows you to do is manage these pre-tax commitments to give from your staff. Disbursements to the cause/s and deductions from payroll are managed through your payroll (and / or finance) team. Benojo provide 3 reports you can download on the 3rd of each month, detailing the previous month’s giving commitments. See Payroll giving reports below for more details on what these include.
Make sure you involve your payroll team in your Payroll giving process; either a Company Benojo Admin can provide payroll the reports each month, or you can have them emailed direct to your payroll representative. Benojo are happy to help guide your payroll team through the reports and process as required.
Setting up Payroll giving
Firstly, the employer needs to enable payroll giving for donations to take place. So as an admin, navigate to the Payroll giving page via your Company admin > Settings menu, and click on the Payroll Giving tab.
The fields on this page are as follows:
- Payroll giving is enabled: Check this to turn on payroll giving for your company.
- Employees can request payroll giving donations be matched: This is enabled from your Donation matching tab so if you'd like to allow matching, head across and enable it there
- A notice / further information for your employees: This is where you have the opportunity to add some bespoke information relating to your Payroll giving scheme or process. Not sure what to write? Here’s a simple example:
Payroll giving is where at the employee’s request, an employer takes money out of their pre-tax salary to donate to a cause.
Both the employee and employer need to enable payroll giving for donations to take place. The employee must also nominate amounts to donate to particular causes. Employers may choose not to process requested payroll donations.
Note your commitment is a monthly amount; for employees paid fortnightly/weekly this amount will be deducted [insert how your payroll team will deduct funds, i.e in one payment on the first fortnightly pay of the month / equally between your two fortnightly pays etc]
Note that payroll giving donations apply to your following month’s salary. Depending on your pay cycle, changes you make may not be reflected until the following month’s payroll. If in doubt, check with your payroll team.
By ticking the Enable check box on your personal Benojo profile, you agree to payroll deducting this amount from your pre-tax salary until you cancel or amend your Benojo commitment to give via the Benojo Payroll giving page.
See the company Payroll giving policy for further information.
- Recipient criteria: As this is pre-tax donating, only Deductible Gift Recipient (DGR) causes will be available for you to select. You can either choose to allow All DGRs (and add exclusions for any you don't want to include), or you can just add the causes you want your staff to be able to give to.
- If you choose to allow all DGRS:
- Check the Employees can give to any non-blocked cause that is a Deductible Gift Recipient to allow all DGRs
- Then if desired, use the Cause blocklist to select any causes you wish to exclude; use the Causes whitelist to select any Causes where Money goes towards something specific, such as a particular project or campaign the Cause or Company is running. Employees will see these special projects displayed when they select that cause to give to on their own Payroll giving page.
- If you choose NOT to allow all DGRS:
- Select the Causes you wish employees to be able to select from, one at a time
- If monies are intended for any special projects as above, add details in the Money goes towards box
- If you choose to allow all DGRS:
- Report recipient: Input an email address where PRG reports will be sent once generated each month; note you may only add one email here. Also note reports are generated and emailed on the 3rd of the month.
If you have multiple offices on Benojo, you will need to enable Payroll giving for each participating office, and select your causes for each office also. Payroll giving is not enabled from your parent company profile, only at this by-office granular level, to give you full control as to who can give to which causes at each location. You can however view consolidated payroll giving reports across all offices from your parent company profile.
Note that it is obligatory for employees to have competed their Employee Number in order to participate in payroll giving. Also note that if staff don’t see the cause they want to give to, they have the option to Suggest a cause, found via their menu. Benojo will contact the company admin should that cause or area of interest become available in future, and it’s up to you if you wish to add them to the company payroll giving list (unless you allow All DGRs, in which case it is automatically available once added)
Want to make changes in future? Easily done. The dustbin symbol will remove any individual Cause selected, or 'money goes towards' project, or if you want to stop payroll giving being available, just uncheck the Enable check box.
See Payroll Giving for Employees How-To instructions.
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. Causes have the option to request a reference and if they do, you - and employees - will see that request box appear, and that reference will be included in payroll giving reports to quote on your bank transfers.