Discrimination claims ceiling raised to $250,000 for Hispanic, women farmers
The updated claims process announced recently increases the maximum cash recovery to $250,000, instead of $50,000. The process offers a streamlined alternative to litigation for each Hispanic or woman farmer and rancher who can prove that USDA denied their loan or loan servicing for discriminatory reasons for certain time periods between 1981 and 2000. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/government/discrimination-claims-ceiling-raised-250000-hispanic-women-farmers" target="_blank">read more</a></p>
Irrigation can have a dramatic effect on food safety
<div class="field-byline"> Phil Tocco, Michigan State University Extension </div> The unpredictable nature of weather makes irrigation a necessity with some crops. How you irrigate can have a dramatic effect on food safety. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/irrigation/irrigation-can-have-dramatic-effect-food-safety" target="_blank">read more</a></p>
Keeping wildlife out of vegetable fields
<div class="field-byline"> Norm Myers, Michigan State University Extension </div> Growers need a plan in place to minimize wildlife intrusions in vegetable fields. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/vegetables/keeping-wildlife-out-vegetable-fields" target="_blank">read more</a></p>
Three root-knot nematode resistant rootstocks released
<div class="field-byline"> Peter Cousins, Fresno County Vine Lines </div> Root-knot nematodes are a chief pest of vineyards across California and the United States, but aggressive and virulent nematode populations can feed on and damage many important rootstock varieties. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/grapes/three-root-knot-nematode-resistant-rootstocks-released" target="_blank">read more</a></p>
Sand bedding details important for dairy industry
<div class="field-byline"> Roberta Osborne, Michigan State University Extension </div> Cleanliness and attention to sand bedding detail both in the storage area and while in use must be observed. Sand bedding has largely replaced organic bedding for dairy cows. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/management/sand-bedding-details-important-dairy-industry" target="_blank">read more</a></p>
US grape coalition brings value to global market
Pledging its ongoing commitment to developing research solutions for U.S. grapes and related grape products for global consumers, the National Grape & Wine Initiative announced its new leadership team for 2012. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/grapes/us-grape-coalition-brings-value-global-market" target="_blank">read more</a></p>
Corn gene offers resistance to three important leaf diseases
<div class="field-byline"> Sharon Durham, USDA </div> A specific gene in corn seems to confer resistance to three important leaf diseases ? southern corn leaf blight, northern leaf blight, and gray leaf spot. <div class="og_rss_groups"></div><p><a href="http://westernfarmpress.com/management/corn-gene-offers-resistance-three-important-leaf-diseases" target="_blank">read more</a></p>


you reporting tips received in their work, unless the information shown on the statements is in another item on this list

Non Profit Payroll: Employees

Officers and Directors

The Internal Revenue Code defines the officers of a corporation—president, vice president, secretary, and treasurer—as employees, and your 501(c)(3) must classify them as such for tax purposes. This applies if your organization pays these officers to perform their duties as officers.

A 501(c)(3) should not classify a corporate officer as an employee if he or she performs no services, or performs only minor services and neither receives nor is entitled to compensation.

By contrast, the Code defines the directors of a corporation—that is, members of the governing board—as nonemployees, and your 501(c)(3) must classify them as such for tax purposes. This applies if your organization pays its board members to attend board meetings or otherwise compensates them for performing their duties as directors.

Volunteers

From time to time, some 501(c)(3)s may provide volunteers with awards, or gifts. In general, if these are non-cash items of nominal value, such as a ham around the holidays, your organization should not count these items as taxable wages.

If your 501(c)(3) gives volunteers cash items, such as gift certificates or any other taxable fringe benefit, it must include these items in the volunteers taxable wages.

Employees

If a person is not an officer, director or volunteer and you compensate them for work done and they are not an independent contractor, they are an employee. Like other employers, 501(c)(3)s that pay wages to employees must pay Federal Employment taxes on those wages. These taxes include:

• Federal income tax


• FICA taxes (Social Security and Medicare)

Non Profit Payroll: Federal Income Tax Withholding

Your 501(c)(3) generally (except Statutory Employees) must withhold and pay Federal income tax from its employees’ wages.

To figure out how much Federal income tax to withhold, employers should ask employees to complete IRS Form W-4, Employee Withholding Allowance Certificate. Ask each new employee to complete and sign a W-4 by his or her first day of work. Keep the form on file, and send a copy to the IRS if the IRS directs you to do so in a written notice.

If a new employee fails to provide a completed Form W-4, your 501(c)(3) should assume single status with no withholding allowances.

Non Profit Payroll: FICA Taxes

FICA taxes go toward Social Security and Medicare. Your 501(c)(3) must withhold and pay these taxes from employees’ wages, with one exception: If your organization pays an employee less than $100 in any calendar year, it need not withhold FICA taxes for that employee. A 501(c)(3) must pay both the amount of FICA tax withheld from employees’ wages and the organization’s match of that amount.

Non Profit Payroll: Federal Unemployment Taxes

The following is a direct quote from the IRS 940 instructions available at the following link:
http://www.irs.gov/instructions/i940/ch01.html#d0e251

"Religious, educational, scientific, charitable, and other organizations described in section 501(c)(3) and exempt from tax under section 501(a) are not subject to FUTA tax and do not have to file Form 940. "

What it comes down to is that if you are a 501(c) (3) and you have received your favorable determination letter from the IRS you don't have to pay Federal Unemployment taxes.

Non Profit Payroll: State Unemployment Taxes

States vary on unemployment taxes on non profits and you should check with your State Unemployment Insurance Department for the rules in the States you have employees.

Non Profit Payroll: Paying Federal Income and FICA Taxes

Your 501(c)(3) must pay withheld income taxes, together with both the employer and employee portions of FICA taxes (minus any advance earned income credit [EIC] payments). These payments must be paid electronically using the Electronic Federal Tax Payment System (EFTPS) or by mailing or delivering a check, money order, or cash to an authorized depositary. Note that some taxpayers are required to exclusivly deposit using EFTPS. Check with a qualified non profit payroll tax professional for additional information.

Non Profit Payroll: Reporting Payroll Taxes

Once your 501(c)(3) deposits the Federal income and FICA taxes, it must submit returns reporting that it has withheld and paid them. Just as the 501(c)(3) pays Federal income and FICA taxes together, it must report them together on IRS Form 941Employers Quarterly Federal Tax Return. They must also be reported annually on IRS Form W2 a copy of which is also distributed to your employees

Non Profit Payroll: Conclusion

There are many similarities between Non Profit Payroll and For Profit Payrolls but several differences not all of which have been discussed here. We always recommend that you use a qualified payroll outsourcing company with CPA's on staff. That way your questions can be answered professionally and any problems solved by a CPA who is eminently qualified by training and experience to work with the IRS on payroll tax problems.

Article Source: http://www.Article-Warehouse.com

Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice. Mr. Read is the author of “How to Start a New Business.” To find professional payroll service at a budget price go to www.PayrollonaBudget.com a paperless payroll company.For a full service payroll bureau with CPA’s on staff visit www.CustomPayroll.com .See an excerpt of Mr. Read’s interviews from William Shatners “Heartbeat of America” television show on the web sites linked above.

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