You and your employees have responsibilities when you offer payroll giving as an employer. These include passing on donations quickly, keeping records, and making sure that the donation is going to an approved donee organisation.
Filing electronically
You can only offer payroll giving to your employees if you file your Employment information – IR348 electronically.
Filing employment information electronically
Your payroll giving responsibilities
When you offer payroll giving to your employees, you are responsible for:
- deducting the requested donation amount from your employee’s salary or wage
- calculating the correct tax credits for each payroll donation made
- recording the tax credits for payroll donations on your IR348
- keeping records of all tax credits for payroll donations, donation amounts donee organisations and payment dates
- advising the donee organisations that the donations are made through payroll giving
- passing the donation on to the chosen donee organisation within the specified timeframe.
Timeframe for passing on donations
When you need to pass on donations depends on your PAYE payment due dates and the pay period the donation was made.
Follow these steps to work out when you need to pass on a donation.
- Take the last date of the pay period the donation was made in.
- Add two months.
- Find the nearest PAYE payment due date (this may be less than 2 months from the last date of the pay period).
You need to pass on the donation by that PAYE payment due date.
If you do not pass on the donation when you should, the donation amount becomes PAYE debt for your business. We may charge penalties and interest.