Payroll Strategies That Work for Nonprofits: Payrolling
Payrolling, or payroll transfer, is an effective tool for managing some or all of your employees by moving them to a staffing agency payroll. PNP Staffing Group provides Payrolling services for hundreds of employees in many nonprofits. This effectively makes our organization the employer of record.
When using Payrolling services, the employer of record becomes responsible for:
- On boarding for new hires.
- Verification of work eligibility and maintenance of all employee paperwork, including W4s and I-9s.
- Administration and distribution of paychecks , including direct deposits.
- Payment of all mandatory Federal, State and City taxes, including processing tax returns.
- Management of liabilities, including workers compensation, insurance costs, and management of work related injury claims.
- Assumption of unemployment liability and payment of unemployment costs.
When should you use Payrolling?
- When engaging special or highly skilled professionals on an as-needed basis, especially when top tier talent is required
- During probationary periods for new employees to ensure against unemployment claims
- With contract, temporary, short term, and seasonal staff
- When internal audit systems aren’t in place to ensure accurate classification of 1099 consultants and to help avoid potential associated tax penalties
- When hiring staff to fulfill grant requirements without artificially increasing your organization’s budget
- To acquire sufficient HR experience, especially when you don’t have an HR department or an individual dedicated full time to HR management
Why use Payrolling?
Payrolling can help you reduce costs, save time on administrative functions, and simplify workforce compliance.
Cost: Onboarding is costly and time-consuming. Liability and insurance costs increase frequently.
Risk: Regulations and labor laws change and compliance issues always need to be monitored and reviewed. Penalties for mistakes are high.
Support for small or non-existent HR departments: Using your HR professionals to onboard those who are on a short-term basis is not the best use of your team’s time. And, maintaining payroll records is highly regulated, with strict rules that require not only time, but knowledgeable staff to keep track of regulatory changes.