When we recently spoke at CalCPA’s nonprofit committee m
Don’t let this happen to your nonprofit. A new nonprofit must register for a payroll tax account number with the Employment Development Department before it hires its first employee. This can be done online, via mail, or by phone (916-654-8706).
Enroll in the Electronic Federal Tax Payment System to pay federal payroll taxes to the IRS. Go online or call 800-555-4477 to do so.
If a payroll service is used, most will walk new organizations through these processes and make it harder to avoid mandatory payroll tax payments.
However you do it, get your ducks in a row and make sure your nonprofit’s payroll taxes get paid!