How to introduce and manage a payroll-giving scheme
Author: Paul Tew
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- Ensure that a business case is made to support the introduction of a payroll-giving scheme.
- Outline exactly what your organisation needs from the payroll-giving agency (PGA) and find out what level of service and support each agency provides before selecting a PGA.
- Check that the payroll-giving forms are fit for their intended purpose and that the employee will understand what he or she needs to do.
- Check that the payroll system has been set up to give the employee tax relief on his or her donation at his or her marginal rate of tax.
- Understand how employee donations are forwarded to the PGA and be clear whether or not there are any scheme administration costs.
- Be aware of the record-keeping requirements of HM Revenue and Customs (HMRC).
- Take into account how the scheme complements any existing charity giving and ensure that the benefits of payroll giving are explained to employees when you are planning the promotion of a payroll-giving scheme.
- Undertake a scheme review once the payroll-giving scheme is in operation to ensure that the scheme continues to meet the business' stated aims and objectives.