January 7, 2012 | 
Author Payroll giving was one of the leading initiatives of David Cameron’s Big Society program but it hasn’t seen anything like the expected rate of uptake, and until recently it saw relatively little publicity especially when compared to more controversial parts of the policy. However, a recent statement issued by some of the biggest names in British business may provide the impetus the program has lacked so far.
Leading names from companies like Whitbread and BP have lent their support to payroll giving, saying that more businesses should get involved with the scheme. There is no doubt that it has benefits- as a way of tax free giving to charity, the scheme does have potential. In the USA about 30% of employed workers donate through similar channels but here in the UK the corresponding figure is just 3%. The rate of uptake is not rising either- new figures show that it has fallen in comparison to last year. One reason for the limited uptake may be that small to medium sized businesses fear that a payroll giving scheme will cause more paperwork and more headaches when it comes to tax reporting.
The ability to adapt document management solutions to a new scheme or a new set of regulations is one of the greatest advantages of outsourced HR. Experts can take such things in their stride, and with the right software no there is no need for a mass of extra work. Flexible solutions should always take the struggle out of reporting and tax documentation, leaving businesses to decide whether or not they want to participate in optional initiatives on their merits.
Posted in business management