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Your Starter Guide to Employment Compliance for Nonprofits [eBook]

For nonprofits, it can be hard to keep all the employment forms and insurance straight. We’ve made a compliance primer to help you out.

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Kris Hoppe
Jul 13, 20172 minutes
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Starting a nonprofit organization has many intrinsic rewards. Knowing that you’re working to make the world a better place and having people join you in that mission is a great reason to get up everyday and go to work.

But running a nonprofit also has its headaches, challenges, and share of red tape. There are so many rules to keep track of — and if you’re looking to stay compliant with state and federal employment laws, where should you start?

Your Starter Guide to Staying Compliant as a Non-Profit

Get your starter guide on staying compliant as a nonprofit.

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Don’t worry, we’ve got you covered. Justworks has created a starter guide on staying compliant as a nonprofit. It covers everything from tax forms and employer insurance to various requirements that nonprofits should keep in mind as they build and grow.

In particular, our starter guide to staying compliant as a nonprofit addresses:

Corporate, Employment, and Sales Tax Forms

  • Form W-2 - Learn under which circumstances employers must complete and file this form for employees.

  • Form 1099-MISC - Read about which payments don’t have to be reported on a Form 1099, such as payments to a C-Corp or S-Corp.

  • Forms 940 and 941 - Learn about the Employer’s Annual Federal Unemployment Tax Return, and how often your nonprofit should pay these taxes.

  • IRS Forms 990, 990-EZ, and 990-N - See which form tax-exempt nonprofits should file as an annual return to the IRS about its finances.

  • Exemption from Corporation Franchise Taxes (CT-247) - Learn about certain nonprofits based in New York that are exempt from the New York State corporate franchise tax.

Required and Optional Insurance

  • Workers’ compensation - Discover what workers’ comp covers for your nonprofit, and some of the requirements around it.

  • Disability insurance - Review the difference between short-term and long-term disability insurance, and how it could benefit employees in a nonprofit.

  • Unemployment insurance - Find out how employers pay for unemployment insurance benefits, as required by state and federal law.

  • Employment practices liability insurance - Learn about optional insurance that protects employers against employment-related claims, such as discrimination or wrongful termination.

Other Things to Consider

  • Charitable solicitation in states - Determine whether your nonprofit is required to register with a state agency when soliciting contributions.

  • Corporate governance - See if your state laws require nonprofits to have a board of directors, and what that entails.

  • Record keeping - Read what the IRS has to say about record keeping for nonprofits.

Of course, there are even more subjects you’ll need to learn to stay compliant, depending on your industry, state, and other federal and local laws. But this guide is a great place to start. You can download it for free here.