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Ensure Compensation Compliance With Our Payroll Services for Charities

As a charity or nonprofit organisation, your employees are your biggest asset and greatest expense. As legislation and regulations become more complex, paying this personnel has become a significant compliance burden.

Furthermore, managing compensation and processing payroll for a nonprofit organisation differ substantially from a for-profit firm. You require expert knowledge of the various regulations and standards that apply. It is much more crucial with churches and ministries.

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Processing and reporting errors are embarrassing, time-consuming, and possibly costly to resolve. Here at Pearl Lemon Accountants, errors are not an option. We ensure your staff is well-paid and on time without mistakes.

Interested in our services? Book us a call today.

Do Charities Pay Their Employees?

Charity employees do get compensated. They get paid for their labour in the same manner as a corporate or government employee would. This contrasts with charity volunteers, who do not get a salary but may be awarded a daily stipend to cover their expenses.

Charity workers are paid because it allows the charity to maintain a stable base of full-time employees. Many charities perform difficult tasks that require a dedicated team. Charities must pay their employees a wage to have individuals work full-time.

Another reason charities pay their employees is to keep them. Few people can afford to work for free. If charities want to keep their employees, they must compensate them. Otherwise, employees will search for compensated work elsewhere.

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A payroll cycle is a period between two salary distributions. Following the organisation’s requirements, salaries may be paid weekly, bimonthly, or monthly. Whether you use a manual procedure or a cloud-based service, you must have a system in place to track employee hours, analyse deductions, and distribute payments to your staff.

Adopting a manual process could be a significant time and resource drain for a small, emerging company. You will have to manually keep track of your employee’s wages and working hours if you have a lot of them. Then you need to check the payroll tax filing laws to be sure you are withholding the right amount of taxes from each paycheck.

The last stage is to take care of time-off payouts, keep track of expenses, and pay your staff. It’s easy to become overworked while running your small business and processing payroll.

One benefit of seeking help from accounting agencies like Pearl Lemon Accountants is that payroll technology automates every step required for accurate payroll processing. The number of hours they have worked automatically determines the precise amount to pay your staff each month.

Salary employees are tracked by the best payroll software, ensuring they are fairly compensated. Even overtime pay can be calculated and accounted for.

One of the main advantages of online payroll automation accounting software is that taxes are automatically subtracted from employee salaries. You do not need to consider deducting employee compensation from payroll taxes or paying them late.

Web portals with essential payment information, such as tax deductions, are accessible to employers who offer QuickBooks payroll features. The most important benefit of payroll automation software is that it lets you focus on managing your business rather than other administrative duties.

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Reasons To Consider Payroll Services For Charities

Payroll management entails tons of responsibilities. These include adhering to payroll laws, tax deposit standards, and timely submission of state and federal mandatory forms so that you are not fined for missing a deadline. 

Outsourcing payroll relieves you of these responsibilities and allows you to concentrate on things that directly impact your firm’s future. Statistically, 45% of businesses are already outsourcing their payroll. Here are some reasons why you should consider it too:

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Payroll Taxes Are Complicated

There are many types of taxes to collect and pay and numerous complicated paperwork to complete.

Here’s an example: Depending on the deposit size, the amounts withheld from the employee payslip for federal income taxes must be sent to the IRS either monthly or semi-weekly (twice a week). 

Making these contributions can take a significant amount of time.

Aside from that, tax laws change all the time. Every year, there may be changes to tax legislation, tax rates, or reporting dates. It is challenging for a single company to keep up with these changes. A payroll service or software application handles these modifications quickly and accurately for many businesses.

Avoid Security Risk

Companies face the risk of an employee tampering with confidential documents, embezzling funds, or committing identity theft. Even with the most dependable personnel, business owners should exercise caution. In-house payroll software should also be used carefully and investigated to determine your data’s safety. 

Outsourcing payroll to a trustworthy agency like Pearl Lemon Accountants can give you peace of mind that your confidential payroll data is always secure. 

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Cost And Time Saving

Outsourcing payroll frequently saves the company money compared to performing the work in-house. 

Payroll processing in-house entails purchasing the required computer equipment, payroll or accounting software and training to ensure that payroll is completed correctly. 

It is also important for employers to remain aware of changes in tax rules, employees, and accounting deadlines. If these issues are not addressed, the company will be exposed to significant liability and unnecessary expenses.

In cases where employees work different hours, you have to file payroll taxes in different locations, or your turnover rate is high. Outsourcing payroll is incredibly cost-effective.

Aside from that, outsourcing your payroll can save you time. Payroll processing requires substantial time and attention regardless of the number of employees. 

In-house payroll processing may require you or your employees to input substantial payroll data. Considering how much time is spent processing and maintaining payroll, outsourcing to a reputable service provider may appear appealing. After all, time is money.

In addition, outsourcing payroll may prevent unforeseen time losses caused by payroll errors and unanticipated audits. Service providers can assist you in avoiding mistakes and focusing on your primary business.

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Regulatory Compliance

Compliance with laws, regulations and mandated standards is one of the most challenging responsibilities for firms, especially when foreign governments are involved.

Businesses need to be thoroughly aware of relevant rules. This includes staying current on labour, tax, immigration, anti-discrimination, and insurance legislation

Regulatory and legal standards for payroll are often complex. It becomes even more challenging when working on a global scale.

Everything is easier with Pearl Lemon Accountants.

Our experts know the local, regional, and national laws and regulations. With us, you can prevent non-compliance penalties.

Hiring A Professional

Outsourced experts give you access to years of experience. This immediate availability is crucial if you work in numerous jurisdictions and want an expert well-versed in all local rules and regulations. You can rest assured that they will handle every little detail of payroll processing.

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What Pearl Lemon Accountants Can Do For Nonprofits

Now that we’ve discussed how outsourcing payroll can benefit you. The question is- how can you integrate an outsourced payroll solution into your company workflow? Here are some of the tasks we can perform for your payroll solutions:

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Payroll Management

Managing payroll procedures in-house is a difficult task. Pearl Lemon Accountants provide innovative and scalable solutions for managing payroll processes more efficiently and effectively.

We provide complete services such as on-time payroll processing, tax filings, expense management, reporting and analytics, coordination/project management, data aggregation, and so on. To generate paychecks, we shall leverage the power of technology to calculate employee compensation, withholding, and deductions.

Payroll Tax Filing

Many companies begin with a dream and a business strategy. However, in addition to managing your firm, you must comply with several government regulations. Tax regulations can be confusing, and your company could face tax penalties if you don’t file everything on time. With the help of Pearl Lemon Accountants, we will:

  • Withhold and submit payroll taxes. We compute and file all taxes, including income and unemployment taxes. Your payments are then sent on time, preventing you from incurring late payment penalties.
  • Take care of payroll tax filing papers. You’ll never miss another deadline with our payroll tax service. You won’t have to worry about tax fines or miscalculations that could result in payroll tax overpayment or underpayment. 
  • We will file federal, state, and local taxes on your behalf. We can also help with year-end reporting and preparing Forms W-2, 1099-NEC, etc.
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Payroll Tax Filing

We’ll screen qualified joiners, do complicated contribution calculations, manage opted-out employees, prepare employee communications, upload contributions and pay data to pension provider websites, and maintain a clear audit trail, all in conformity with auto-enrolment legislation.

Report and Analyse Donations

Automatically receive payment or donation summaries and month and year-end reports for an in-depth study of your company’s compensation and pension plans.

Payroll Solutions That Meet Your Nonprofit Organisation Needs

A charity’s payroll obligations often differ from those of a traditional business, resulting in a greater-than-average level of complexity.

Because of this, managing charity payroll in-house is a big issue for charities. They frequently need to hire a full-time staff member or ask other volunteer workers to spend time addressing payroll concerns rather than conducting the organisation’s primary activities. While many charities try to manage payroll on their own using basic payroll software, they may discover that the program does not support these levels of complexity.

Good thing Pearl Lemon Accountants offer payroll services that can relieve the pressure on charity employees. We are aware of the issues of processing large numbers of minor employee payments and high staff turnover payrolls typical of the charity and not-for-profit sectors.

If you want to learn more about how Pearl Lemon Accountants can help- get in touch with us today.

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FAQs

Payroll service costs vary depending on the type and size of the organisation. Ultimately, the smaller the individual cost, the larger the employees.

When you have many employees on your payroll, it will take more time to compute and crosscheck line items on their names. Individual costs would be significantly lower if you used a payroll provider for many employees.

If you want to know about our payroll services, book a call with us.

Payroll outsourcing occurs when a company outsources some or all of its payroll functions to a third party. Full-service companies generally assist with tax reporting, regulatory compliance, data security, unemployment claims, and payroll administration.

Manual payroll isn’t the easiest task, but with the correct knowledge, time, and a robust calculator, you can do payroll for your small business independently. However, hiring a professional will save you time and money. With a professional, you can also rest easy that you are always tax compliant and avoid further issues.

When you allow us to keep track of your finances, you give yourself more time to do your work and please more clients. It's a win-win situation for everyone. Aside from that, you'll also gain financial stability because your assets and liabilities are managed well enough not to cause any trouble for you in the future.

So let our experts work for you, and you won't regret it even a bit.

Book a call today to get started.