Nonprofits pay employees the same way as for-profit organizations do! Employees are given a salary as determined by their positions and may be eligible for bonuses and other compensation, depending on the organization’s policies.
Nonprofit HR and Payroll Software
Streamline HR & Payroll to Focus on Your Mission
Our HR and payroll software helps your nonprofit focus on what matters most to your organization.
- Reduce costs by automating workflows in payroll, employee management, and benefits administration.
- Maintain federal, state, and local regulatory compliance with support of our tax experts.
- Attract and engage diverse workers by creating an environment that draws talent in and helps retain them.
Your Work Is Too Important to Slow Down
Keep your nonprofit’s bottom line top of mind with an all-in-one solution
- Payroll
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Run Quick, Accurate Payroll
Simplify nonprofit payroll with user-friendly software built for your complex needs.
- Track time spent on grant-related work to easily report on payroll expenses connected with a specific grant.
- Accurately withhold federal income tax and FICA (Social Security and Medicare) taxes from employee paychecks.
- Stay within your budget by right-sizing your payroll solution to fit your organization’s needs.
- Human Resources
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Automate HR Duties
Streamline management of nonprofit employees, documents, and compliance.
- Give employees access to a self-service portal where they can access pay stubs, tax documents, schedules, and more.
- Get quick access to work authorizations, EEO and FLSA compliance data, industry news, certifications, and other compliance courses.
- Streamline information collection, document collection, and task completion across your workforce.
- Time & Labor
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Manage Workforce Time Tracking
Track employees’ and volunteers’ working hours and get powerful insights from real-time reports.
- Eliminate paper timesheets and reduce administrative burden.
- Enable workers to clock in via mobile app, web, kiosk, or other timeclock options.
- Minimize compliance risk with self-set schedule rules around things like age, capacity, and employee classification.
- Tax Compliance
-
Leave It To Our Experts
Ensure compliance with federal, state, and local tax regulations and maintain 501(c)(3) tax-exempt status.
- Prepare and file Form 990 accurately, completely, and with ease.
- See company-level and employee-level tax setup in real-time.
- Get peace of mind with our promise to assume liability, penalty, or interest charge in the event of a Paylocity error.
- Insights & Reporting
-
Take a Data-Driven Approach
Make impactful, cost-effective decisions and improve diversity, equity, inclusion, and accessibility (DEIA) in your nonprofit organization.
- Empower candidates or volunteers to share their preferred name, mask information that may promote bias in the hiring process, and ask optional identity questions in the application.
- Administer anonymous employee surveys to ensure you hear from your entire diverse workforce.
- Monitor and report on the diversity of your workforce to meet your nonprofit organization’s DEIA goals.
Run Quick, Accurate Payroll
Simplify nonprofit payroll with user-friendly software built for your complex needs.
- Track time spent on grant-related work to easily report on payroll expenses connected with a specific grant.
- Accurately withhold federal income tax and FICA (Social Security and Medicare) taxes from employee paychecks.
- Stay within your budget by right-sizing your payroll solution to fit your organization’s needs.
Automate HR Duties
Streamline management of nonprofit employees, documents, and compliance.
- Give employees access to a self-service portal where they can access pay stubs, tax documents, schedules, and more.
- Get quick access to work authorizations, EEO and FLSA compliance data, industry news, certifications, and other compliance courses.
- Streamline information collection, document collection, and task completion across your workforce.
Manage Workforce Time Tracking
Track employees’ and volunteers’ working hours and get powerful insights from real-time reports.
- Eliminate paper timesheets and reduce administrative burden.
- Enable workers to clock in via mobile app, web, kiosk, or other timeclock options.
- Minimize compliance risk with self-set schedule rules around things like age, capacity, and employee classification.
Leave It To Our Experts
Ensure compliance with federal, state, and local tax regulations and maintain 501(c)(3) tax-exempt status.
- Prepare and file Form 990 accurately, completely, and with ease.
- See company-level and employee-level tax setup in real-time.
- Get peace of mind with our promise to assume liability, penalty, or interest charge in the event of a Paylocity error.
Take a Data-Driven Approach
Make impactful, cost-effective decisions and improve diversity, equity, inclusion, and accessibility (DEIA) in your nonprofit organization.
- Empower candidates or volunteers to share their preferred name, mask information that may promote bias in the hiring process, and ask optional identity questions in the application.
- Administer anonymous employee surveys to ensure you hear from your entire diverse workforce.
- Monitor and report on the diversity of your workforce to meet your nonprofit organization’s DEIA goals.
The Paylocity Difference
Supporting Nonprofits Just Like Yours
See how other nonprofits have leveraged our platform to return their focus to their causes.
related resources
Paylocity News,
Payroll
Blog Post
June 03, 2022
FAQs on Nonprofit Payroll
501(c)(3) organizations are not exempt from payroll taxes and are responsible for withholding certain federal, state, and local taxes for their employees via employee paychecks.
For a nonprofit to be tax-exempt, it must be organized and operated according to section 501(c)(3) of the Internal Revenue Code. Generally, these are charitable organizations whose earnings are not distributed to shareholders.
Nonprofits may use grants to cover payroll expenses, but there must be meticulous record-keeping to ensure each working employee’s time is spent on grant-related activities. It depends on the grant, so be sure to carefully read the terms before using the funds for payroll.
Volunteers can clock in and out with an employee time collection function that accurately records their working hours.
Many small nonprofits manage without an HR department, but human resources plays a crucial role in any organization. From administrative tasks like payroll and benefits administration to building company culture, HR is more important than ever — no matter the industry.