Payroll Giving

Payroll giving, also known as automatic payroll deductions, is a type of corporate giving program that enables employees to donate a portion of their salary to charitable organizations. This system allows for seamless contributions, making it easier for employees to support causes they care about without the need for manual transactions.

One of the standout features of payroll giving is its tax efficiency, making it beneficial not just for the charity but also for the donor. Here’s how the tax implications work:

Payroll giving donations are taken directly from an employee’s gross salary, before income tax is applied. This means the donor pays less tax overall, and the charity receives more of the intended donation upfront. There’s no need for the charity to reclaim tax, because it’s already accounted for in the process.

Additionally, unlike other tax-deductible donations, payroll giving doesn’t require the donor to complete a self-assessment tax return or any forms. The process is seamless, handled by the employer’s payroll department and the payroll giving platform.

Yes! Contact your employer’s Payroll or HR department to edit the amount or cancel your payroll giving deductions.