Setting up a scheme
In order for an employee to donate through a Payroll Giving Scheme, their employer must have a Payroll Giving Scheme already in place. To do this, the employer signs a contract with an Inland Revenue registered Payroll Giving Agency (PGA).
The PGA of your choice will investigate nominated charities to establish legitimacy and handle all the administration of distributing every employees donation to the chosen charities. Currently there are 9 PGAs to choose from but the Five of Hearts would recommend the following -
A list of all the PGAs can be found here.
We've listed the sign -up process in 5 easy steps -
1. Setting up a Payroll Giving Scheme is very simple and your selected PGA will give you all the necessary help and guidance needed. The Contract can be downloaded from each PGAs website but we have also included them in our Downloads page. Complete and return to your PGA.
2. 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. This is where you will need to promote the Scheme to your employees and there are lots of different opportunities. Please contact the Five of Hearts Team as we would love to help you with this.
3. 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.
3. 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.
4. 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).
5. 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.