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Tax Administration Act 1994

Third-party providers - Payroll donations

124ZG: Transfer of payroll donations by employers

You could also call this:

"When you donate to charity from your pay, your employer must pass it on by a certain date"

Illustration for Tax Administration Act 1994

You ask your employer to take some money from your pay and give it to a charity. Your employer must give this money to the charity by a certain date, which is near the end of two months after you got paid. The money is held in trust for you until it is given to the charity. You must make sure the charity is a real one and give your employer the details they need to make the payment. The employer must follow the rules in sections RA 15 and RD 4 of the Income Tax Act 2007 when making the payment. This means they have to give the money to the charity on or by the date that is closest to two months after you got paid.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2687906.

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Part 7BThird-party providers
Payroll donations

124ZGTransfer of payroll donations by employers

  1. This section applies for a pay period and employer who agrees to offer payroll giving to their employees, when a person asks their employer to transfer an amount of a payroll donation from the person's pay to a donee organisation.

  2. The employer or PAYE intermediary must transfer the amount to the recipient of the donation on or by the relevant date required by sections RA 15 and RD 4 of the Income Tax Act 2007 that occurs nearest to the expiry of 2 months after the end of the pay period. Until transferred to the recipient, the amount is held on trust for the person.

  3. Before the transfer referred to in subsection (2) is made, the person must—

  4. ensure that the recipient of the donation is a donee organisation; and
    1. supply the employer with sufficient details of the recipient to enable the transfer to be made.

      Notes
      • Section 124ZG: inserted (with effect on 6 January 2010), as section 24Q, on , by section 610 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section 124ZG: renumbered, on , by section 24(2) of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).