Exult Ltd busts some myths re Payroll Giving:

Myth #1: Payroll Giving schemes are time-consuming for employers to administer.
Setting up a Payroll Giving scheme will take time, but the benefits to the employer are great. Not only will the wider community view them as a socially responsible business, offering a Payroll Giving scheme will boost staff morale as they see the company focussing on issues that are important to them.

If administration really is an issue, businesses can use a Payroll Giving intermediary to manage the process for them. Intermediaries in New Zealand include Thankyou Payroll, Givealittle, Internet Payroll Services, United Way NZ and the Payroll Giving Foundation.

Myth #2: Employers have to match donations made by their employees.
No they don't. While some employers choose to contribute alongside their employees, it is not required.

Myth #3: Employees can choose to donate to any charitable organisation they like.
Not necessarily. If the employer is managing their Payroll Giving scheme directly, they get to choose the organisation that employees can donate to via Payroll Giving. Because of the administration involved, they usually include a limited number of organisations on the list. Most businesses will give employees some input into which organisations are included.

If an employer is using an intermediary to manage their Payroll Giving scheme, it is likely that employees will have a larger range of organisations to choose from. In most cases intermediaries will allow employees to make donations to any donee organisation.

Myth #4: Employers have to purchase a whole new payroll system to manage Payroll Giving.
Most electronic payroll systems have been updated to manage Payroll Giving, so there shouldn't be any need to purchase new software. That said, in order to offer Payroll Giving to employees, businesses must file their monthly IRD returns electronically. The change-over to electronic returns is fairly easy and all the information is on the IRD website.

If you would like more information about payroll giving, email This e-mail address is being protected from spambots. You need JavaScript enabled to view it and ask nicely if you can get a free copy of the February-April edition of their Tonic magazine. The offer is limited to the 1^st 100 requests.