Payroll Giving

January 6th, 2010 at 12:00 pm by David Farrar

One of the minor law changes made last year, is to enable payroll giving. This allows you to make a donation to through your employer (if they choose to participate) and you automatically get the tax rebate.

In other words if you donate $6 a week to a charity through payroll giving, then your net pay only drops by $4 a week, as the $2 a week rebate is automatically claimed back for you.

This scheme goes operative on Thursday 7 January 2010, for those who file electronically with the . I’m certainly going to offer it to my employees, as it involves miniscule admin work for employers – it is all done automatically.

Also an an employee, I’d find it great. I always find it a hassle keeping all my donation receipts and then having to file for a rebate/refund from IRD. To have it happen automatically will be a real time saver.

There is a short IRD guidebook on it, plus an employee FAQ and employer FAQ.

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9 Responses to “Payroll Giving”

  1. stephen (3,981 comments) says:

    Thanks for the reminder! woo!

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  2. Camryn (481 comments) says:

    Great idea. I’m hoping the IRD is managing to maintain efficiency with all the extra burdens in recent years – KiwiSaver, WFF, this, etc.

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  3. Murray (8,803 comments) says:

    Jake should be watching what hes doing with that hot steam.

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  4. travisb (14 comments) says:

    This is great, the IRD is light years away from most other tax authorities. Has anyone here ever had to do their taxes in the states? The horror…the horror…

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  5. KiwiGreg (3,278 comments) says:

    Communism

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  6. side show bob (3,410 comments) says:

    Don’t like it. Pressures an employee to make a donation, some churches would love this set up. What business is it to anyone else who gives what. And how long will it now be before the the IRD has just a “little” charity tax, I don’t trust the bastards.

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  7. Murray (8,803 comments) says:

    Like those buggers that lurk at the door of the supermarket shaking their money buckets at you. bugger off, I came here to buy my food and my bags aren’t packed for a guilt trip.

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  8. Pete George (23,806 comments) says:

    Payroll giving is yet more work for payroll software, but other than that it has to be a good thing. It is voluntary, and it means if you donate to charity you get your tax back immediately rather than wait until the end of the tax year (and more).

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  9. pjje (27 comments) says:

    Can’t help thinking how efficient it is for tithing.

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