Summary

You need to design your Payroll Giving scheme before you implement it in PayGlobal. You need to determine how charities and donation transactions are entered into PayGlobal, and any limitations on minimum and maximum amounts, start and end dates, or donee payments. PayGlobal cannot validate this type of information.

You need to set up and administer registered charities and their banking, address and other information manually because PayGlobal cannot validate this type of information. The donating employee is expected to provide this information for their nominated charity.

You need to determine eligibility because PayGlobal cannot check for all non-salary/wages exclusions, although it will warn you about schedular (withholding) payments.

Setting up Payroll Giving has two basic steps:

1. Create a Payroll Giving deduction for each registered charity that you want to offer.
2. Create permanent Payroll Giving deduction transactions for each eligible employee who wants to make regular donations to a registered charity.

   Further Reading: See the Payroll Giving manual in the website library.

Payroll Giving deductions

Create a deduction for each registered charity that you want to offer.

Important: Set up deductions for registered charities only, and ensure that all banking information is correct.

Type: D. Standard Deduction (mandatory)

Taxable: No (mandatory)

Rank deduction and Rank: Use ranking to ensure that the donation transaction is created after statutory deductions are made. Ranked deductions are made before unranked deductions.

Is a disbursement: We recommend setting this field to "No" so the nett pay value on the payslip will match the nett pay value in Transaction View.

Direct credit: Yes

Consolidate DCs: Yes - PayGlobal will consolidate the bank account for each deduction as long as banking information is not changed on individual transactions.

Calculation method: F. Fixed amount - For employees who want to donate a fixed amount every pay or for 'one-off' donations. Include "Fixed Amount" in the deduction description.

Deduction class: G. Payroll Giving (mandatory)

Superannuation deduction: No (mandatory)

Bank account, Account name, Bank code, Bank particulars: Registered charity's bank account number and other bank information

Notes tab: Enter the charity's legal name, registration number, and address details.

Employees

Create permanent deduction transactions for each eligible employee who wants to make regular donations to a registered charity. Enter appropriate start and end dates, and the appropriate fixed amount. You do not need to enter bank account details.

Important: Legally, employees can make Payroll Giving donations only from salary and wages earnings. Do not set up donation transactions for contractors or for employees on schedular payments tax codes. If an employee receives schedular tax allowances, then ensure that their donations are limited to salary and wages earnings.

If an employee wants to donate to multiple charities, then you need to create a separate permanent deduction transaction for each charity.

If an employee wants to make a 'one-off' donation to a registered charity, then add the relevant deduction transaction to the requested pay only.