Non-Profit Payroll Mistakes Costly to Organization and Those It Serves

Outsourcing offers expertise in tricky accounting procedures.

Lewisville, TX, December 05, 2007 --( Non-profit organizations are unique not only for the services they provide but also in how their payroll and IRS filings are managed. Currently, a disparity exists between the help available to these agencies and their ability to accurately process payroll and make timely and accurate filings. These duties often are handled by a volunteer or someone with no experience in managing payroll. This can lead to a variety of problems including late filings, improper employee withholding amounts and missed payments. To avoid inadvertent problems with the IRS and open the organization up to questions regarding accounting practices, non-profits are best-served by utilizing a qualified payroll outsourcing company with CPAs on staff to manage payroll. This measure of security provides the agency assurance that regardless of their service, state or funds, proper documentation will be filed and payroll will run smoothly.

“There are many state and federal laws and regulations concerning employee records that can be confusing and sometimes contradictory,” says Charles Read, president of “Non-profits can quickly find themselves on the wrong end of dealing with the IRS due to mistakes in filing necessary paperwork and employee payroll. In addition, certain regulations apply only to non-profit organizations and not to for-profit companies. Outsourcing these tasks to a qualified online payroll provider virtually eliminates oversight errors and gives the organization and its board of directors peace of mind.”

The payroll processing company will use employee and payroll records when compiling various periodic IRS filings and to process ongoing payroll. Required IRS forms must be completed accurately and sent in a timely manner to avoid penalty. Self-teaching the staff a finance software program or hoping the volunteer bookkeeper processes payroll accurately opens the agency to unwanted and unnecessary problems. Hiring an online payroll company, particularly one with CPAs on staff, is economical, efficient and wise. This incurs no additional cost but adds a level of professionalism to assure volunteers, employees, the board of directors and other stakeholders that the job is being done correctly. is part of Custom Payroll Associates, Inc. (CPAI), a full service payroll processing company with more than 16 years of experience in the payroll industry. They currently serve clients in more than 42 states and territories by offering paperless payroll and other small business payroll services. Founder and President Charles J. Read is a CPA.

Charles Read