Payroll Giving - For Employers
Setting-up a Payroll Giving scheme is simple and there are many benefits for employers because:
- It offers an excellent way to support employees wishing to make tax effective donations
- It enhances a company‘s social responsibility profile and provides good PR opportunities
- It boosts staff morale and aids both staff retention and recruitment
- It can influence business-to-business relationships
- It provides opportunities to demonstrate investment in the local community
If you operate PAYE, you can set up a Payroll Giving scheme. Click the links below to find out more.
How does a Payroll Giving scheme work?
Once an employer sets-up a Payroll Giving scheme:
- Employees are free to decide how much they wish to regularly give and to which charities
- A deduction is made every pay day from each employee‘s gross pay
- All deductions are sent to ourselves with a schedule of employees‘ contributions
- We collate the deductions and distribute them to each charity
What are the costs?
There are virtually no costs other than:
- The time taken to set up the scheme and promote it to your employees, and
- A small administration charge in line with all other Payroll Giving agencies to cover the cost of distributing the monies to charity
The administration charge is agreed on either a percentage or fixed-cost basis. This can either be:
- Deducted by us from each donation each pay day, or
- Paid by yourselves on behalf of the employees by adding it to the deductions sent to us, in which case, the administration charge is a tax-allowable expense against profits
What is “matching”?
Employers can also match their employees’ donations; the matching amount can be any amount agreed by you and it is added to the employees‘ donations
Matched amounts:
- Do not incur any adminstration charge, and
- Can be charged against profits as a charitable donation
What do we have to do to set up a Payroll Giving scheme?
Download our Payroll Giving Pack which contains all the forms, instructions on how to complete, and other useful information
When completed, please return the forms to us by post
Please Contact Us if you have any questions or require assistance
What happens after we sign a Contract?
Within a few days, the Contract, countersigned by ourselves, will be returned to you. You may then start making the first deductions from pay
We recommend that you appoint a Scheme Administrator, namely, someone who will be responsible for dealing with questions from employees as well as being a day-to-day contact with ourselves
Step-by-step instructions for the Scheme Administrator on how to operate the scheme are provided in an Information Sheet and Scheme Administration Checklist which can be downloaded
How can our employees collectively give to charity?
This can be achieved by a Corporate Options Account
A Corporate Options Account is:
- Set up by ourselves on your behalf and is not unlike a bank account
- Can be credited with employees‘ payroll deductions, e g, through Payroll Giving or Every Penny Helps, or company funds, e g, for matching employee’s charitable donations
- An account where funds are held by us until the company, e g, its charity committee, decides to which charity or charities they wish to donate
- Operated by completing a “voucher”, either on-line or by sending us your donation instructions by post”
In this way, funds can be made available for a special appeal or invested in a deserving cause in the local community