Non Profit Payroll
Non Profit Organizations have some unique scenarios when addressing payroll and payroll taxes for their employees. Here we are addressing here many of the frequent payroll situations for Non Profit Payrolls.
Non Profit Payroll: Employee Records
There are lots of federal and state laws and regulations regarding employee records that could be confusing and sometimes conflicting. What worker records if you continue to be safe? These items should you truly have them (and you should) have to be kept in employee’s personnel documents. We advocate for audit and IRS functions that you maintain them at least seven complete years.
- Employee job program
- Reference and background checks
- Offer of employment
- Job description
- IRS Form W4
- State W4 equivalent
- HLS Form I9
- Employee benefit registration or diminishing forms
- Annual performance tests
- Interim tests or disciplinary forms
- Exit Interview
- Added possible forms to keep
Copies of any statements furnished by employees relating to nonresident alien status, residence in Puerto Rico or the Virgin Islands, or residence or physical presence in a foreign country
Any arrangement between you and the employee on Form W-4 for voluntary withholding of additional amounts of tax
Requests by workers to have withheld tax calculated according to their individual cumulative wages and some note that such a request was revoked
IRS Form W-5, Earned Income Credit Advance Payment Certificate, and the amounts and dates of the progress payments
Foundation List is a national non profit jobs board designed for the not for profit sector. It is their mission to connect foundations, organizations, educational institutions and socially conscious entities to passionate mission-minded job seekers.
Non Profit Payroll: Payroll Pay Records
- Each employee’s name, address, and Social Security number
- The total amount and date of each wage payment and the period of time the payment covers
- The figures subject to withholding for each wage payment
- The amount of tax collected on each payment and the date collected
- The reason, if the taxable amount is significantly less than the Whole payment
- The fair market value and date of each payment of noncash compensation
- Information about the amount of each payment for injury or health plans
The dates in each calendar quarter on which any worker worked for you, however maybe not at the course of your trade or business, and the sum paid for that work, if needed to figure tax accountability
Copies of invoices workers give you reporting hints received in their work, unless the information displayed on the statements is in a different item on this list
Non Profit Payroll: Employees
Officers and Directors
The Internal Revenue Code defines the officers of a corporation–president, vice president, secretary, and treasurer–as workers, and your 501(c)(3) should classify them as such for tax purposes. This applies if your company pays these officers to do their duties as officers.
A 501(c)(3) should not classify a corporate officer as an employee when he or she performs no services, or performs only minor services and neither receives nor is entitled to compensation.
By comparison, the Code defines the directors of a company–that is, members of their governing boardas nonemployees, and your own 501(c)(3) should classify them as such for tax purposes. This applies if your organization pays its board members to attend board meetings or compensates them for doing their duties as directors.