If you’re someone who generously supports charities, good on you. You would be pleased to know that your generosity can serve you an advantage when it comes to getting your tax returns Australia lodged. This is because donations to charities are tax deductible. However, if you are the type of person who misplaces or loses donations receipts, you’re going to have a bad time.
The Benefits Of Workplace Giving Program (WGP)
The good news is that Workplace Giving Program (WGP) exists to make tax returns Broome lodging so much easier for everyone. WGP allows Deductible Gift Recipient (DGR) charities to receive donations from employees as a lump sum. This works by taking donations directly out of the volunteer employees’ pay, with the help of their employer.
The WGP is a win-win for both the person donating and the charity as they can take advantage of a hassle-free process in terms of handling donations.
For employees who wish to donate:
You don’t have to worry about misplacing or losing your donations receipts, and not being able to include them in your tax returns Australia – as you can let your employer sort things out for you. Your employer will be the one who will make the donation on behalf of their employees. And there’s no need for receipts issued as this donation will already be recorded in the pay office.
For charities to receive the donations:
Charities only need to process one donation from each employer, instead of processing individual donations from each employee. This can reduce costs on the charity’s end.
How It Works
Your employer will either:
1. Provide you a written confirmation of the total amount you have donated during the financial year, or
2. Include the total amount you have donated in your payment summary or tax returns Broome.
Generally, the WGP works much like making a direct donation to a charity, only without the hassle and headaches.
What To Look Out For
You can only claim the deduction in your tax returns Australia if the charity has a DGR status. Also, you need to make sure that your employer keeps complete and accurate records of all your donations.
If you are the employer, you need to know that there are lots of administrative requirements before you can establish a WGP for your employees. You can check out the Australian Taxation Office’s website to learn more. Alternatively, you can consult with your tax accountant and learn more on how you can best sort the WGP for your company and your employee’s tax returns Broome.