With many nonprofit organizations, there tends to be multiple misunderstandings about how the organization conducts their payroll. Most of the time, nonprofit organizations have to follow all of the same laws as for-profit companies when they conduct their payroll. Outsiders who have never worked in a nonprofit tend to believe that the nonprofit will somehow have an easier time with putting their payroll together since the company doesn’t have to worry about the same kind of revenue stream that regular corporations do. On the contrary, nonprofits have to worry and plan for many of the same payroll expectations that a for-profit business has.
A couple of these similarities include:
- Offering a benefits package
- Withholding social security
- Paying Various Other Taxes
If anything, many professionals who are on the HR side at nonprofits consider payroll to be more complex for nonprofits than it is for for-profit companies because there may be certain tax deductions that are applicable or the funding needs to be organized in a specific manner. This is especially true if the HR management has been able to see how payroll functions at a for-profit corporation.
To help nonprofits ensure that they are paying their employees in an efficient and timely manner, many nonprofit organizations find assistance with their payroll through the use of a payroll software that is designed specifically for organizations like them. This helps the nonprofits automate their systems and save precious time when their payroll comes around each month.
Nonprofit Payroll Software
With a payroll software that is designed specifically for nonprofits, you’ll possess the capability at the tip of your fingers to enter in the specific tax deductions that your nonprofit qualify for. This will then be factored into your software’s system and it will save you time (and headaches) through applying the deduction automatically. The tax deductions are one of the largest obstacles for HR nonprofits because there are numerous tax deductions that your nonprofit organization could qualify for. Marking your organization as not qualifying for a tax deduction (or qualifying for the wrong tax deduction) could have costly consequences for both you and your organization. With the nonprofit payroll software that you can fit to comply with your organization’s needs, you’ll be able to feel confident that your nonprofit has qualified for all of the right
The software will also allow you to view employees’ timesheets extremely quickly. From there, you’ll be able to tell who needs to fill in for what shifts and where holes may need to be filled in the upcoming weeks. You’ll also be able to know if an employee’s timesheet has been submitted or if it’s still outstanding. This will allow you to quickly reach out to the necessary employees to remind them to submit their hours.
Nonprofit Payroll Software Will Help Organize Your Employees
When you’re working at a nonprofit, you probably have full time employes, part time employees, salaried workers, and hourly workers. All of these differences in the kinds of pay that employees receive probably works well for the business, but can cause a lot of headaches in the accounting department if someone’s information is entered incorrectly.
No matter the size of your nonprofit, this can be a hassle that your employees don’t want to deal with.
Instead, with the nonprofit payroll software, your HR or accounting department will only need to enter your employees’ payment information and the system will ensure that your employees are paid automatically at the correct pay period.
How An Efficient Payroll Software Saves Your Nonprofit Money
Whether you’re a small nonprofit where all of the employees can fit in one room or a large nonprofit organization that is spread across a national scale, conducting payroll can take a large portion of your HR department and accounting department’s time.
In each department, your workers could be doing more productive things with their time instead of focusing on the payroll each month. With the way that your payroll software organizes data, you won’t have to search long and hard to discover how much someone should be paid. You’ll be able to save yourself time as well since you’ll only need enter your employees’ information one time.
Calculate payroll for employee -DepositPhotos
