When you think of a nonprofit organization, you might picture an army of volunteers graciously donating their time without pay. In reality, nonprofits run much like corporations with paid employees and regularly scheduled paydays. They face challenges similar to for-profit businesses like accurately withholding payroll taxes while also facing obstacles unique to nonprofits such as staying within a tightly limited budget, using grant money for certain payroll expenses, and determining reasonable executive compensation. While all this may sound overwhelming, proactive research and preparation can help make understanding and implementing nonprofit payroll easier. Here’s a look at what leaders of nonprofit organizations need to know.
Owning a restaurant comes with responsibilities to both patrons and employees. For patrons, food quality, a clean environment, and friendly customer service top the list. When it comes to employees, a safe working environment, proper training and equipment, and friendly managers and coworkers are key to keeping them engaged and happy. But one thing outweighs all other worker benefits: meeting expectations on payday. If you don't provide employees with the right amount of wages at the right time, everything else becomes irrelevant.
Research from the Society for Human Resource Management (SHRM) shows companies that invest in a detailed, effective onboarding program retain 50% more of their new hires than their competitors. Similarly, employees who have a positive onboarding experience are 69% more likely to stay employed at their current company for at least three years. With the unemployment rate reaching new lows, signaling a decrease in potential new hires, it’s more important than ever to invest time in crafting a good onboarding experience.
When a business reaches a certain number of eligible participants for their 401(k) plan, federal law requires an independent audit of that defined retirement plan. Larger companies are more accustomed to this annual requirement; however, owners and managers of smaller businesses may never have experienced a 401(k) audit or don't know nearly enough about it.
No matter the size of your business, or how good your retention rate is, from time to time, an employee resigns in favor of other opportunities. For them, it means a new chapter in their professional life. For you, it means closing the book on their employment with your company.
If you’ve been putting up with a payroll and HR system that no longer works for you and your employees, it’s likely time to take the leap and move to a new system. Switching systems can mean fewer manual processes and streamlined data flows, giving your team more time to focus on more strategic and people-oriented tasks within your department. If you’ve determined switching is the best option, you’re likely concerned about the work involved in moving to a new system. Working with unfamiliar technology and people, loading and mapping employee data and history, conducting user training on the new system…it can seem overwhelming. However, you can minimize the stress and workload by following a few essential guidelines for a successful payroll implementation.
On the surface, managing the payroll process may seem like a simple, straightforward task. You provide paychecks to all your employees on time, and everyone in your company is happy. That seems easy, right? In reality, there is a lot more to the process than meets the eye - and you’re not alone if you feel stressed trying to handle all its moving parts.
When you really get down to it, payroll processing for each of your employees involves in-depth knowledge of wage laws and payroll taxes at the local, state, and federal levels, employee deductions, your company’s internal processes, and most importantly – patience. That doesn’t sound so straightforward, after all, does it? In order to reduce your stress, here are guidelines for creating a more manageable payroll processing experience.
If you prioritized business owners' favorite responsibilities, payroll taxes would likely fall towards the bottom of the list. Unless you have a deep history in payroll processing, it can be difficult to stay on top of all the ins and outs of tax obligations—from Social Security and Medicare to federal and state unemployment taxes and beyond.
But it doesn’t have to be a burden. Here are essential elements to managing one type of employer tax, unemployment insurance, from filing the correct form to being proactive in controlling your tax rate.