2019 sees exponential growth in payroll giving Jan 9, 2020Views: 145
Payroll news can be a dark and terrifying place. There are fines around every corner and new regulations under every trapdoor. The sound of your next deadline echoes through your mind like a ghost through the hallways of an empty house. So, I thought it would be nice to do something different and share a nice story for a change.
So what’s the good news? No, HMRC didn’t fall into a sinkhole, it’s about payroll giving, which has seen its most significant rise in the UK this year since its introduction 30 years ago! What’s payroll giving I hear you say? Well, it’s exactly what it says on the tin! You give payroll as a gift to your least favourite co-worker.
Just kidding! Payroll giving is a simple, tax-effective way to give to charity directly from an employee’s pay. It’s a flexible scheme that allows anyone who received their pay through payroll to give on a regular and tax-free basis to the charities and good causes of their choice!
Payroll-giving is a valuable and long-term source of revenue which provides regular income to charities. This helps them plan ahead and to budget more effectively. The best thing? It’s tax-free. Donations are deducted after NIC but before PAYE is calculated and then sent to the payroll giving agency who passes the donations onto the chosen charities.
According to the Association of Payroll Giving Organisations, the number of companies and their employees taking part in payroll giving schemes has increased dramatically this year with 65% more Payroll Giving Quality Marks being awarded this year. Payroll Giving Quality Marks are awarded annually to employees to show the percentage uptake amongst their employers.
On an individual level, 59% more employers achieved Diamond Award level, 95% more got Platinum Award level and over 1,000 more Bronze Awards were given out. These awards are based on participation in the scheme by the organisation’s staff so these numbers are actually pretty impressive.
Isn’t it nice to know that in these dark times not everyone is selfish and in fact, there seems to be more good than bad. The generosity demonstrated in these figures is a real testament and something to be proud of. If you want your back to be included in this big ol’ pat then speak to someone in your HR or Payroll department to see how you can get set up.
If you haven't got a payroll or HR department then BrightPay Payroll Software is your new best friend. They already provide a preset “Payroll Giving” deduction to facilitate employees who wish to donate through their pay. Check them out at www.brightpay.co.uk.
Written by Aoibheann Byrne - BrightPay Payroll Software
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