Payroll Giving
Staff at South Canterbury DHB can donate to charity directly from their pay and receive immediate tax credits that reduce their PAYE tax.
This is a good way to donate regularly to the MRI fundraising campaign, or to any other charity that is on the Inland Revenue approved donee organisation list.
To organise payroll giving:
If you are a member of staff at South Canterbury DHB and want to donate from your pay:
1. Check that the organisation you want to donate to is on Inland Revenue's approved donee organisation list. Please note that payroll giving only applies to the organisations on this list.
2. Check that you have the full and correct name of the donee organisation, the amount you want to donate each pay period, or periods, and the donee organisation's bank account and postal address. You will need to supply proof of the organisation's bank account number - a deposit slip or letter will do.
3. Download the Payroll Giving Form, fill it out and take it to the Payroll Office.
To donate to the MRI Fundraising Campaign
If you are a member of staff who would like to use payroll giving to donate to the MRI Fundraising Campaign, please follow the instructions above, but name your donee organisation as the Aoraki Foundation. The Aoraki Foundation is an approved donee organisation on the Inland Revenue list. You do not need to supply a bank account number for the Aoraki Foundation because it is already on file.
Please note that payroll giving is only available to South Canterbury DHB staff. If you are a contractor or a member of the public and would like to donate to the MRI Fundraising Campaign, please pick up an envelope at any GP surgery, pharmacy or physiotherapy rooms.
How tax credits for payroll donations work
Tax credits for payroll donations are calculated at 33.33 cents for each dollar donated, which is deducted from your PAYE. Once the tax credit has been calculated, the employee's PAYE is reduced by the amount of the tax credit.
Here is an example showing how the tax credit affects tax payable on salary or wages:
Hannah makes a payroll giving donation of $12 to her church. She is paid $2,140 every four weeks. This is her only job so her tax code is "M". Before the tax credit is applied her PAYE is $435.48.
The tax credit for Hannah's payroll donation is $3.99. Her employer applies the tax credit when working out Hannah's pay and Hannah's PAYE is reduced to $431.49 for that pay period.
Hannah's new take-home pay is now:
Income $2,140.00
less PAYE $435.48
less donation $12.00
plus tax credit for payroll donation $3.99
equals take home pay $1,696.51
The Inland Revenue website has a calculator that can help you work out your tax credit.
For more information about payroll giving visit the Inland Revenue website.