Wage donation

from Wikipedia, the free encyclopedia

The wage donation is an employee waiving part of his remuneration in favor of a specific charitable purpose. The employer withholds this part of the remuneration and transfers it to the non-profit or charitable institution. The retained earnings are not taken into account when determining the taxable wages. In return, no donation receipt will be issued.

Germany

In Germany, the wage donation is a temporary exception that can be issued by the Federal Ministry of Finance . Such exceptions were used in particular in the context of disaster relief to support the victims of natural disasters and in the course of the refugee crisis in Europe in 2015 to promote refugee aid.

The portion of the wages retained as a wage donation is not taken into account in the taxable income .

However, employees who pay a flat-rate tax in the context of marginal employment can only claim the donation when submitting their income tax return in the following year, because the flat-rate tax must be paid on the part of the earnings withheld.

In Germany, the wage donation has no influence on compulsory insurance as defined by German social insurance . This means that the social security obligation continues to exist to the same extent as if no part of the remuneration was withheld and paid.

In detail, such exemptions were used in the following cases (without claim to completeness):

Great Britain

In Great Britain, the wage donation has existed as an unlimited model (“payroll giving” or “give as you earn”) since 1987. The decision to offer a “payroll giving” scheme rests with the employer; however, the employee usually determines which non-profit organization receives the donation. Many companies add an equally high percentage to their employees' wage donation up to a self-determined maximum as an additional donation (“matched donation”). This donation from the employer is in turn tax-deductible as a corporate donation .

For tax reasons, the employer must carry out “payroll giving” through an agency: through a “payroll giving agency”. The agencies charge fees for their work, which may vary in amount depending on the agency and the donation scheme chosen. On March 24, 2015, the British government signed an agreement with “payroll giving” agencies which, in the interests of transparency and simplification of bureaucratic processes, provides for the first steps towards a uniform accounting format.

In Great Britain, companies are awarded certificates according to their commitment in the area of ​​wage donations ("Bronze, Silver, Gold or Platinum Payroll Giving Award Certificate"). In addition, several prizes (“Payroll Giving Excellence Awards”) are given annually to those companies that have shown a particularly high level of commitment in terms of their “matched donations” and their internal communication (for example in the form of company-internal advertising campaigns ).

Payroll giving is very limited in the UK, by around 2% of workers.

United States

Payroll giving is more widespread in the USA than in Great Britain. According to The Economist , it is not only promoted in the US, it is actually expected there.

Individual evidence

  1. ↑ Wage donation to promote refugee aid. Minjob headquarters, October 29, 2015, accessed November 1, 2015 .
  2. ↑ Disaster Relief. Verein taxation.info, accessed on November 1, 2015 .
  3. ↑ Tax measures to promote aid for refugees. September 22, 2015, accessed on February 12, 2017 (BMF letter, GZ IV C 4 - S 2223/07/0015: 015, DOK 2015/0782725).
  4. ↑ Tax measures to support the victims of the earthquake in Nepal, BMF letter dated May 19, 2015, GZ IV C 4 - S 2223/07/0015: 013, DOK 2015/0373468
  5. ↑ Tax measures to support the victims of the floods in the Balkans (Bosnia-Herzegovina, Croatia and Serbia), BMF letter of June 17, 2014, GZ IV C 4 - S 2223/07/0015: 011, DOK 2014/0463684
  6. ↑ Tax measures to support the victims of the famine in East Africa, BMF letter of August 2, 2011, GZ: IV C 4 - S 2223/07/0015: 006, DOK 2011/0657670
  7. ↑ Tax measures to support the victims of the earthquake and seaquake disaster in Japan in March 2011, BMF letter of March 24, 2011, GZ IV C 4 - S 2223/07/0015: 005, DOK 2011/0219607
  8. ↑ Tax measures to support the victims of the earthquake disaster in Haiti in January 2010, BMF letter of February 4, 2010, GZ IV C 4 - S 2223/07/0015, DOK 2010/0065323
  9. ↑ Tax measures to support the victims of the flood disaster in Pakistan at the end of July 2010, BMF letter of 25 August 2010, GZ IV C 4 - S 2223/07/0015: 0004, BStBl 2010 I p. 678
  10. ↑ Tax measures to support the victims of the flood disaster in August 2005 in southern Germany, BMF letter of 6 September 2005, IV C 4 - S 2223 - 175/05
  11. ↑ Tax measures to support the victims of the seaquake disaster in December 2004 in India, Indonesia, Sri Lanka, Thailand, Malaysia, Burma (Myanmar), Bangladesh, the Maldives, the Seychelles as well as in Kenya, Tanzania and Somalia, BMF letter of January 14, 2005, IV C 4 - S 2223 - 48/05, BStBl. 2005 I p. 52
  12. ↑ Tax measures to support the victims of the flood disaster in August 2002; Compilation of the measures, BMF letter of October 1, 2002, BStBl 2002 Part I p. 960
  13. ↑ Frequently Asked Questions. Payroll Giving - For Employers. www.charitablegiving.co.uk, accessed November 1, 2015 .
  14. ^ Government commits to boost payroll giving. (No longer available online.) Www.charitiestrust.org.uk, March 24, 2015, archived from the original on March 4, 2016 ; accessed on November 1, 2015 .
  15. ^ A b Philanthropy: Doing well and doing good. The Economist, July 29, 2004, accessed November 1, 2015 .