Payroll giving for employers

28 Aug 2015

Payroll giving is a great way to support your employees and change the world for people affected by blood cancer at the same time.

Payroll giving has lots of benefits for employers:

  • It’s quick, simple and cost-effective – you don’t have to pay to set up payroll giving.
  • It boosts staff morale and engagement, by helping your staff support causes they care about.
  • It can help with your corporate social responsibility strategy.
  • It boosts your reputation and public image, with the Payroll Giving Quality Mark and other awards for employers who promote payroll giving to their staff. 
  • By matching some of your employees’ contributions you show that you care about the causes they care about, and you can offset any donations against corporation tax.

Getting started with payroll giving

There are just a few simple steps you’ll need to follow before you can start promoting your scheme to your employees.

The first step

First off, you’ll need to register with a Payroll Giving Agency. They are in charge of administering your payroll giving scheme and will dish out your employees’ donations to the charities they’ve chosen to support.

There are several agencies you can choose from:

What does my company need to do next?

To give via payroll giving, each staff member who wants to donate will need to fill in a form with details about which charity they want to give to and how much they want to give every month – you can get these from your Payroll Giving Agency. You’ll need a record of this to give to your Payroll Giving Agency – if anything changes, like a staff member leaving or wanting to give more or less money every month, you’ll need to let your agency know.

Every payday, you’ll make the deduction from your employees’ pay – after National Insurance but before tax has been deducted – and pass this along to your Payroll Giving Agency, either by cheque or BACS. Along with this, you’ll need to include the names of your employees who are making a gift and their total contribution.

Final steps

The Payroll Giving Agency will administer everything and make sure the chosen charities get their donations.

The only time you’ll need to do anything else will be if someone’s situation changes – for example if they leave the organisation, change their name or want to change the amount they’re giving every month. Then, just let your Payroll Giving Agency know and they’ll handle the rest.

Do Payroll Giving Agencies charge fees?

Payroll Giving Agencies are charities themselves, so some of them charge a small fee for their services – usually around 4%. This is normally taken from your employees’ donations, but companies can choose to pay this fee themselves as a way of showing their staff they care, and so staff know that every penny they donate goes directly to the charities’ work.

Promoting your scheme

Make sure employees know about your Payroll Giving Scheme. Use the communications channels you already have in place – such as email, posters, staff inductions, talks or seminars and face-to-face bulletins – to tell your staff about the scheme and the benefits.

Matched giving

Some companies agree to match their employees donations – either pound for pound, or a percentage of the total pledged – to a charity.  This is a great benefit for your employees and demonstrates your belief in giving charitably.

Make a donation

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