New Zealand’s Revenue Minister has praised the creation of a new website which offers information for employers seeking to establish Payroll Giving schemes in their workplaces. The country’s Payroll Giving is a scheme which allows an employee to donate to a nominated charity through their employer’s payroll. In return, an immediate tax credit is offered to the employee.

Tax credits for payroll donations are calculated at NZD 0.33 for each NZD1 (USD0.81) donated. This is deducted from the employee’s tax through pay-as-you-earn (PAYE). Employers are responsible for calculating the correct tax credits for each payroll donation made by their employees. The new website aims to help both large and small-to-medium sized employers.

Mr. Dunne said the Group, which comprises a mix of small and large employers, had worked very hard to make Payroll Giving more accessible for other employers. “One of the most useful things for employers contemplating offering the scheme is to be able to learn from the experiences of other employers just like themselves. The site will provide useful insights and learning from employers who have successfully established payroll giving schemes,” he explained.

At present, 1,300 employers offer Payroll Giving, providing over 100,000 employees with access to a scheme. Dunne said he was very gratified by the response to the scheme, noting “New Zealand is a big-hearted country. In fact a recent report has placed New Zealand in second place behind the US for charitable donations. Payroll Giving seems to be gaining favour as a convenient way to donate and over NZD4.8m has now been donated through the scheme.”

According to Mr. Dunne, in December, 2011 alone, over 2,200 employees donated just over NZD275,000. As a result, they received immediate tax credits totalling over NZD91,000.