Whether you’re a public charity, private foundation, or another form of nonprofit — we’ve got you covered. Our payroll and HR software makes it easy to pay W-2 employees, 1099 contractors, volunteers, and board members. And with 30+ years of experience, we get things right when it comes to tax withholdings, payments, and filing FUTA exemptions. Integrations with top accounting and time tracking software even help you keep the books (and back office) in order.
— Dina M., Texas Agricultural Land Trust
Keep your personnel files up to date — without any papercuts. Send HR documents to employees for e-signature, and keep it all stored in the cloud for easy access and record keeping.
Speed up your hiring process with automated onboarding workflows. Employees can onboard themselves, view pay stubs, and update their personal details from their own employee account.
Our built-in HR tools make it easy to track and manage PTO requests. Customize your accrual policies, Workers can submit time off requests for manager approval right from the app.
We make payroll easy on your bottom line. Starting at just $40, plus $6/employee per month, you’ll get access to OnPay’s award-winning payroll.
It’s easy to get started. Provide a little information about your organization and we’ll get you set up.
Generally, non-profit organizations must withhold federal income taxes from their employee’s wages and pay a matching amount. To calculate the amount to withhold from an employee’s paycheck, use their Form W-4, Employee’s Withholding Certificate, and reference IRS Publication 15 and Publication 15-A. For any specific questions on how to handle, you should catch up with your CPA or accounting department.
Yes, even with tax-exempt status, when nonprofits have employees they’re subject to the same payroll taxes as for-profit organizations. You must withhold federal income tax and FICA (Social Security and Medicare) taxes from employee paychecks as well as pay the employer portion of FICA taxes.
According to the IRS, organizations described in section 501(c)(3) are commonly referred to as charitable organizations. To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual.
The organization must not be organized or operated for the benefit of private interests. If you are not sure if your organization falls under these designations, contact your CPA, bookkeeper or accounting personnel.
Yes, you are able to pay yourself. If you run a nonprofit, own an S-Corporation, a C-Corporation, or you’re an LLC that chooses to be taxed as an S-Corporation, you’ll need to pay yourself through a payroll system. OnPay can and does support LLC’s that pay themselves once a year — or weekly. For any specific questions related to setting each of these entities up, talk to your bookkeeper, accountant, or tax professional.
Yes, it’s possible since you are able to have access to unlimited pay runs per month with OnPay.
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