Donate through your New Zealand payroll system
New Zealand’s Inland Revenue Department (IRD) has introduced a new donation scheme that allows employees to make tax-deductible donations through their employer’s payroll system. The scheme will be available from 7 January 2010.
Payroll giving now allows New Zealand employees to ‘give as they earn’ by making donations directly from their pay to approved organisations.
Payroll giving is absolutely voluntary and employers have the choice of whether or not to offer the scheme to their employees. The employer deducts any donation from their employee’s pay, reduces their PAYE by the appropriate tax credit, and then forwards the donation to the chosen donee organisation.
Before making a donation, employees must have met all their tax obligations and had any legally required payments deducted from their pay, including, if applicable:
- PAYE (tax and ACC earner levy)
- Student loan
- Child support
- KiwiSaver
You will receive an automatic tax credit on any donations to approved organisations submitted through payroll giving. The tax credit for payroll donations is 33 1/3 cents for every dollar donated. If your donation is made through payroll giving, you will receive the tax credit in the same pay period.
If you are interested in donating through payroll, speak to your employer.
