With OnPay’s intuitive software backed by expert support, getting payroll for nonprofits & charities right is a breeze.
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“OnPay is very affordable for our nonprofit with one paycheck. Their customer support has been easy to access and very helpful when we needed it, and it is a relief to know all our taxes and fees are being paid properly to the fed and state government so we don’t have to try and figure out all those details.”
– Anna P., Dignity First
“OnPay provides awesome support. You can call them and get a real person who cares, is knowledgeable, and knows how to help. The website and system are easy to use for a small company without an HR department. They have good integration with our bookkeeping system. And best of all, they are the lowest cost payroll provider we researched.”
– Alex W., Level
“As a nonprofit business, we don’t have the funds for a CPA to be doing our payroll. Moving to OnPay was a blessing. It saves us time and money, and we know things are taken care of the way they are supposed to.”
– Dr. Joe W., Connection Christian Church of Odessa
“We are a small non-profit who just switched payroll services to OnPay. So far, the transition has been a very easy set up and an incredibly user friendly experience! I’m pleased with their help and customer service as well.”
– Nonprofit organization management
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. Most states have payroll tax requirements for nonprofits, as well.
The good news? OnPay’s non-profit payroll services automate the calculations, payments, and filings of these taxes to simplify compliance.
Yes, OnPay makes it easy to run payroll the way that makes sense for your organization. You can create custom pay items and/or or run unlimited pay runs at no additional charge.
If you haven’t already, the first steps are registering for required IDs, including an Employer Identification Number (EIN) from the IRS and tax IDs in states where you pay workers. You’ll need to collect employee forms like the W-4, I-9, and state-specific tax forms — plus any other onboarding documents. Generally, nonprofit organizations must withhold federal income taxes from their employees’ 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. A payroll software like OnPay makes it easy by handling letting you securely collect forms like the W-4 electronically for e-signature — and then we automate all of the calculations and tax payments when you process payroll.