A Workplace Giving Program enables Employees to make small, regular donations to charitable organisations as a pre-tax wage deduction. It is a simple way to regularly donate to Charities or Organisations that are entitled to receive tax deductible donations. Workplace giving represents a joint relationship between Employers, Employees and Charities.

Individuals contribute a small portion of their pre-tax salary to Charity and receive the tax benefit straight away rather than waiting until the end of the Financial Year.

Employer's Responsibility

Employers must organise a number of charitable Organisations for their Employees to choose and ensure the participating Charities are Deductible Gift Recipients (DGR). If an Employer offers workplace giving, Employees can choose their preferred Charities from a selection and the amount to be deducted. The Employer then pays the donation directly to the Charities.

Benefits of introducing a Workplace Giving Program

Workplace Giving Programs can enrich the Organisation’s values and culture, helping their staff find a greater purpose at work and get them involved with activities that develop pride, a sense of community and social awareness.

A successful way to increase donations is for workplaces to match donations. Businesses can also enhance the impact of their Workplace Giving Program by incorporating volunteering, skill-sharing and in-kind support.

Create the Workplace Giving Liability Account

1. Go to Accounting > Chart of accounts
2. To create a new Liability Account click on [Add Account]
   
   è  The Add New Account screen
   
   
   
   
3. Select/Enter the following details:
   • Account Type > Current Liability
   • Code > Enter a 3-digit code starting with 8
   • Name > Type: Payroll - WPG #charity name (i.e. WPG Greepeace)
   • Tax > Select: BAS Excluded
4. Click on [Save]

Set up the Workplace Giving Payroll Deduction

1. Once you have created the Deduction Liability Account, you can set up the Workplace Giving Deduction Pay Item
2. From the Organisation Menu go to Settings > Payroll Settings
3. Click on the [Pay Items] > [Deductions] Tab
4. Click on [Add] > Workplace Giving
5. Select/Enter the following details:
   • Deduction Name > Type: Workplace Giving - #charityname
   • Account > Select the WGP #charityname Liability Account
   • Reduces PAYG Withholding > Select this option
   • Reduces Superannuation > Leave blank
   • Excluded from W1 > Select this option 
6. Click on [Add]
   
   è  The Pay Item screen
   
   
   

Add the Workplace Giving Deduction Pay Item to the Employee's Pay Template

1. Go to Payroll > Employees
2. Open the Employee details and click on the [Pay Template] Tab
3. Click on [+Add Deduction Line]
   
   è  The Add a Deduction Line screen opens
   
   
   
   
4. Select/Enter the following details:
   • Deduction Type > Select: Workplace Giving - #charityname
   • Calculation Type > Select either Fixed Amount or Pre-Tax %
5. Click on [OK]
   
   è The Deduction Line is added to the Employee's Pay Template
   
   
6. Enter the applicable Workplace Giving deduction amount or % the Employee has chosen to contribute.
7. Click on [Save]