Streamline your organization’s payroll management duties when you invest in payroll software for nonprofits for the 2023 tax season. For-profit businesses are not the only groups that use or benefit from using payroll software. Do not worry if your nonprofit organization employs fewer workers than any of your competitors. Hiring fewer workers and paying lower wages does not mean that a nonprofit will not benefit from a payroll system’s management tools and organization features. Whether you just created a nonprofit or you need a program that grows with your organization, consider how you want to pay your employees, calculate and remit your payroll taxes, and budget for any specific payroll costs.
We designed Advanced Micro Solutions Payroll Software with nonprofits in mind. We offer users six optional add-on modules, including AMS Payroll, that create a customizable experience. Use whichever tools benefit your organization and build out our software based on your priorities.
Top Features in 2023 Payroll Software for Nonprofits
Using generic software for your nonprofit may not cause problems, but you should still look for tools that fulfill your specific organization’s needs. Some of the most important nonprofit-specific tools for you and your team are:
Standout Reporting Features – Find a reliable program that provides your organization with nonprofit-oriented reports. Does your software allow you to generate Internal Revenue Service forms like Form W-2, Form 990, or Form 990-N? Make sure that you can electronically file your forms instead of needing to spend more time mailing them.
Affordability – Nonprofit organizations must prioritize how much they spend and where they spend it. Invest in payroll software for nonprofits in 2023 with no hidden or extra fees and a full pricing transparency from the vendor.
Scalable Modular Software – All types of businesses have the potential to grow and expand regardless of their tax classification. Avoid software that only supports you to a limit. Consider where you want to see your nonprofit in the next five or ten years. Plan a software purchase in accordance with your projected goal. One of the greatest inconveniences is when you need to buy a new program too soon.
Impressive Customer Service Reputation – Nonprofit payroll management is different from other types of payroll responsibilities. Reach out to a vendor’s customer service arm and see whether they will provide some form of 24/7 support.
Why is Nonprofit Payroll Unique?
Consider the unique types of calculations that require your nonprofit to purchase payroll software for nonprofits for the 2023 tax year. Does your organization struggle with grant calculations or employee classifications? Here are some questions to ask yourself as you handle your organization’s nonprofit payroll.
Can I use grants to pay my employees? Use grant funding to cover projects and expenses, such as payroll, that the grant’s terms cover. Your employees must track their work if you pay their wages with a grant. Review these records to confirm that their hours and activities align with the grant’s allocated dollars.
Are nonprofits exempt from payroll taxes? No, nonprofit organizations must still withhold and deposit funds toward FICA taxes for each of their employees. Nonprofit tax exemptions relate to those for the federal income tax and FUTA tax. You will also need payroll software for nonprofits 2023 when it comes time to file your relevant tax returns. Familiarize yourself with the applicable payroll tax deadlines.
Can my nonprofit lose its tax-exempt status? Familiarize yourself with certain infractions that can result in a nonprofit losing its tax-exempt status. Do not lobby to influence legislation or try to benefit an insider of your organization. Make sure to always complete and file Form 990 and do not deviate from pursuing your tax-exempt activities that you agreed upon with the IRS.
How do I set up payroll for a nonprofit? Follow the basics after you register with agencies to solidify your nonprofit. Collect all of the necessary employment documents, including Form I-9 and Form W-4.
Why Nonprofits Prefer Using AMS
AMS Payroll offers nonprofits a competitive software solution for an affordable price. Invest in our 2023 payroll software for nonprofits and support up to 1,999 payers or as many as 9,999 employees per payer. Nonprofits of any size can customize our program with as many of our add-on modules as they require. Our other five modules are our Software Generated Forms, E-File, Forms Filer Plus, Affordable Care Act Filer, and 1042-S Filer. Print your client letters or choose to magnetically or electronically file nearly 30 state quarterly returns with our payroll reporting features. Download our free 1099-etc Demo software today to see our full range of services.