Payroll Giving

PAYROLL GIVING

What is Payroll Giving

Payroll Giving allows employees to contribute towards charities by giving their employers permission to deduct it from their salaries.

This is a very convenient way for them to make tax efficient contributions towards a cause of their choice.

How Payroll Giving Works

In order to start Payroll Giving, the employer needs to have a payroll giving Scheme.The employees can then choose to sign up for CHOC. The Payroll Department (HR) simply deducts the money from the employee’s gross salary, and the Payroll or Finance Department will then transfer the collected donations to CHOC.

Benefits Of Payroll Giving

Payroll Giving is an easy, tax efficient way to contribute towards CHOC. There are no administration costs going to an external party and every cent of the funds will go towards CHOC.

Benefits for charities

Payroll Giving creates a sustainable income stream for the charity, making it easier to budget and plan. The donation goes directly from the individual’s account into the CHOC bank account.

Benefits for individuals

  • Their taxable income is reduced.
  • Individuals can give as much or as little as they want and for however long they want.
  • Individuals don’t have to try to remember to make regular contributions – it will automatically be sent to CHOC on their behalf for as long as they choose or as long as they remain with the employer.
  • It allows individuals to give to a registered charity without leaving their desks – they get to feel good while doing good.

Benefits for employers

  • It’s quick and easy to set up and run – there are virtually no set-up costs for signing up to the scheme.
  • It’s a way to show commitment to a cause that the employer and the staff care about.
  • Minimal admin with low running costs.
  • An easy way to meet your CSR objectives.
  • Increase staff morale.
  • A simple and effective way of being part of a worthwhile cause.
  • Section 18A’s are offered to the employer annually for all contributions.
  • You are able to claim for Socio-Economic Development points for your organisation’s B-BBEE scorecard.

What Does the Employer Have to Do?

To arrange a Payroll Giving initiative for your organisaiton please contact Business Development Unit 086 111 3500 or email bdu@choc.org.za. Once a month, employers need to forward employees’ payroll deductions to the charity, including a list of people that have donated and the amount they have deducted during that period.