If
you want to offer your employees the opportunity
to donate to charities directly from salary via
your payroll system you must have a payroll Giving
Scheme in place.
Setting one up is
easy and once in place takes around ten minutes
a month to administer through modern Payroll Systems.
The following information explains how to go about
this.
Step 1 - sign a
contract
An employer must
signs a contract with an Inland Revenue registered
Payroll Giving Agency (PGA). There are around 9
agencies registered to do this and the one you choose
will investigate your employees nominated charities
to establish legitimacy and handle all the administration
of distributing every employees donation to the
chosen charities.
10together recommends
the following:
South West Charitable Giving
Click
here to visit their website.
Click here to download their Employer Pack containing forms and instructions on how to set up.
A list
of all PGA's and their contact details is available
by clicking
here.
The Contract can
be downloaded from each PGA's website. Complete
the contract and return to your chosen agency.
Step 2 - PGA Registers your Company
Your PGA will register you as an employer offering
Payroll Giving to your employees and contact you/your
Payroll Manager with the relevant instructions on
what information they will need from each donor.
Step
3 - Internal Promotion
If
you have chosen to support 10together we will run
a promotion for you but you can promote any UK charity.
Visit our "promotion" page for more information
and ideas
Step
4 - Getting Donations
Any
employee wishing to take advantage of this great
way to give must fill out a Payroll
Giving Form and hand it to Payroll Department
so they can make the necessary deductions. Employees
should be given the opportunity to give to any charity
they choose. Your chosen PGA will give you these
or if supporting 10together, we will provide you
with forms. They can also be downloaded here
Step 5 - Administering the Scheme
Your
Payroll will then instruct your PGA what money will
be going to which charities, they then make the
deductions (just like any other deduction, I.e.
a pension deduction) and send the total amount donated
by all the Payroll Givers to your PGA, usually via
BACS.
Step
6 - Chosen Charities get their Donation
Your PGA will then administer the donations to the
charities, as instructed by your employees (and
if you are an SME employer, your PGA will manage
the matching which is available from the government).
If you have employees who wish to stop, all that
is required is that they let the Payroll Department
know in writing. If you have an employee who leaves,
as they are no longer being paid through your Payroll,
their deduction will simply stop the last time you
pay them.
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