Quarterly Funding Calculator Slight glitch on the system so please use this link in the meantime, below is payroll giving information
Payroll Giving
Background to payroll giving
The Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 amended the Income Tax Act to allow employees to make charitable donations through their employer and receive immediate tax credits for this. Employers can choose to make Payroll Giving available. This Act came into force on 7 January 2010.
Payroll Giving is changing the way that people make donations. It is also changing the way donee organisations (schools, charities, sports clubs, churches, etc.) receive their income.
In the past, donors have had to save receipts and then submit them at the end of the year to obtain a tax refund. This system is cumbersome and often refunds are not claimed. Payroll Giving is more convenient for donors. They will simply choose the organisation that they want to give to off a list of verified donee organisations. By using payroll giving they can give smaller amounts each payday and avoid the difficulty of having to find cash for large donations. Donors will get their tax credit at the same time.
For donee organisations (including schools), being registered for Payroll Giving will help smooth funding throughout the year and reduce the costs of fundraising.
The aim is to grow the number of State sector and private sector employers offering Payroll Giving. Getting more employers involved will allow greater numbers of employees to donate through their payroll.
Ministry of Social Development scheme
The Ministry of Social Development started its Payroll Giving scheme from 12 April with the initial priority to enrol 1500 charities. It made a commitment that schools would be next.
The Ministry is a large government department with a number of business units, including:
With a staff of approximately 10,000, Ministry business units have offices or facilities in every significant community in New Zealand.
Many of the Ministry’s staff, are parents of school age children. Providing a system for them to make donations to their child’s school through their regular pay and get their tax credits at the same time will be attractive to them.
More specific information for schools
How your school can become involved
If you’d like your school to be involved in the scheme, you will need to provide the Ministry with a set of information which will allow them to set up systems to transfer donations to your school. See the attached form. The sooner that you provide the information, the sooner you can be added to their list of available organisations, and the sooner you’ll start receiving donations through Payroll Giving.
It is important to note that your school will only be registered for Payroll Giving if all requested information and authorities are provided.
Download the form
The information that you supply will only be used for the purposes of setting up Payroll Giving. In this regard MSD are requesting your authority to share your school’s information with other employers planning to introduce Payroll Giving so that you do not have to keep being contacted to supply the same information.
Ideally they would like to receive your responses by email (in scanned form) or by fax. However, they will also accept responses in the post.
If you require further information please look on their website www.msd.govt.nz or contact the Payroll Giving Help Desk – 04-9178100.