Payroll & Finance

Puppies and Payroll Giving

May 20, 2014
Sam | FlexiTime Resource Author


Payroll Expert

A man came to our door yesterday, promoting the NZ Blind Foundation and asking for a dollar a day donation to their guide dog training. Those puppies sure are cute. We’re ‘dog people’ and it’s a great cause so we signed up.

He registered me there and then using a great iPad app. But one thing he couldn’t do was set my contribution up to use Payroll Giving.

Payroll Giving allows your employer to deduct donations from your pay and put a 33% tax credit directly against your PAYE. No need to gather up receipts at the end of the year and send them off to the IRD; the tax credit is immediate.

With PayHero it’s a piece of cake to set up Payroll Giving. The payment to the charity will be included in the bank file and the tax credit is included in the downloaded IR348. For more information on how to set these up, see this article.

Check out our Definitive Guide to Payroll Giving.


The crazy thing about Payroll Giving is how little it is used. Did you know you can set your school donations up as a Payroll Giving donation? I don’t think I had ever claimed the tax back from school donations before we started using Payroll Giving when the IRD introduced it a few years back.

Back to the puppies. I got a call today to verify the donation. I mentioned to the person that I would rather pay by Payroll Giving and would like to cancel the credit card deduction. But apparently to do that the original donation would get cancelled and I would need to contact the Blind Foundation. That meant the nice guy who came to the door and did such a good job of selling the concept wasn’t going to get any recognition. They weren’t making it easy!


There are great charities out there doing marvellous work. If only they could offer the Payroll Giving option as a smooth process, or even make it a selling point of donations to their organisation. School newsletters should have instructions for how to pay this way and cut down on the stack of cheques they have to process.

Every little bit helps, in terms of money given for training puppies, but also in making giving as easy as possible.

Sam | FlexiTime Resource Author


Payroll Expert

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