Donation for Payroll Giving

A deduction can be set up as a donation for "Payroll Giving" under the Deductions option from the main menu of Payroll Pro.

Only use the Payroll Giving option if your business offers the "Payroll Giving" scheme for your employees and the deduction is a donation to a charity, for which employees are liable for a donation tax credit.
(Please see the IRD's website www.ird.govt.nz/payrollgiving for more information.)

For example you might be setting up SPCA. This might be set up with code SPCA and name "SPCA". Any code and name can be used.

Then tick the Donation for "Payroll Giving" box and answer any confirmation prompts.

Once this has been set up, you can use it in "Enter Current Pay" under the "Deductions" tab. When entering this in "Enter Current Pay", ensure the code is entered into the second column "Deduction" not the first column "Dept". Payroll Pro will then take care of the tax credit calculation and the tax credit will also be included in the employer Monthly Schedule (IR348).