How it runs for nonprofits, charities and associations
You approve and release every run. Executive compensation is tracked for the Form 990 compensation schedule.
What is payroll processing outsourcing?
Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree.
What we handle for nonprofits, charities and associations
- Prepare payroll runs from approved timesheets and position allocations
- Split each payroll journal by fund, grant, program and functional category
- Match grant-charged salary to effort records for funder review
- Track officer and key employee compensation for Form 990 reporting
- Reconcile payroll tax, retirement and benefit liabilities after every run
The KPI that matters here
Payroll journal posted with fund and grant allocations within 2 business days of each run, with grant-charged effort matched to timesheets.
Nonprofits compliance notes
IRS Form 990 data (US)
Tax-exempt organizations file Form 990, 990-EZ or 990-N depending on gross receipts and assets, by the 15th day of the fifth month after year-end. We prepare the underlying data: revenue by source, functional expenses by program, management and fundraising, net assets by restriction, and officer compensation schedules. Your CPA reviews and files the return; we provide preparation support only.
Restricted versus unrestricted funds
Under ASU 2016-14, net assets are presented with donor restrictions and without donor restrictions, and restrictions are released when the purpose or time condition is met. We track each restricted gift and grant from receipt to release in the ledger, so the statement of activities and the notes show releases with support rather than estimates.
Charity Commission (England and Wales)
Registered charities with income over £25,000 must file an annual return and accounts within 10 months of the financial year-end, and those above the audit threshold need an independent examination or audit. We keep the books to Charities SORP categories where the charity reports on an accruals basis, and assemble the figures for the trustees' annual report. The trustees and their examiner or auditor remain responsible for the filing.
ACNC (Australia)
Charities registered with the Australian Charities and Not-for-profits Commission lodge an Annual Information Statement within six months of year-end, with financial reporting obligations that rise with size. We prepare the financial figures and, where the charity is registered for GST, the BAS workpapers for your TPB-registered BAS agent or accountant. We do not lodge the statement or the BAS.
Nonprofits software we work in
- QuickBooks Online
- Xero
- Sage Intacct
- Bill.com
- Stripe
- PayPal
- Gusto
- Bloomerang
- DonorPerfect
- Neon CRM
- All 50 platforms
More for nonprofits, charities and associations
Other services for nonprofits
Frequently asked questions
How do you allocate payroll to grants and programs?
From timesheets where staff track effort, or from approved position allocations where they do not, we split each employee's salary, taxes and benefits across funds, grants and functional categories in the payroll journal. Grant-charged amounts are compared with effort records monthly. This gives you the personnel support a funder or single auditor asks for without a year-end scramble.
Do you handle retirement plan and benefit deductions?
Yes, 403(b) or 401(k) contributions, health premiums and other deductions are reconciled after each run to the provider statements, and employer contributions are allocated to grants and programs along with salaries. Remittance timing is tracked so the liability accounts clear each month. Plan compliance testing remains with your plan administrator.
Can you support UK or Australian charity payroll?
Yes, through Xero Payroll or KeyPay, with pension auto-enrollment in the UK and superannuation in Australia tracked as liabilities and allocated to funds. We prepare the run and post the journal; you approve and release. In Australia, Payday Super and STP Phase 2 obligations are tracked with your TPB-registered agent handling any lodgment.
Ask an AI assistant to summarize this page
Opens the assistant with a prefilled prompt so you can check our claims against the page yourself.