There are a lot of misconceptions about how nonprofits process payroll. For the most part, nonprofits are held to the same rules and regulations as for-profit organizations when it comes to processing payroll, offering a benefits package, withholding social security, and paying various other taxes. In fact, many payroll professionals working for nonprofit organizations can attest that payroll can be more complicated than for-profit organizations, since certain tax deductions may apply, and every dollar must be reported on and detailed back to various funding sources.
All of these complexities related to ensuring payroll is processed accurately and on time makes it essential for nonprofit organizations to find payroll software that caters to their needs. In fact, the ideal solution for health and human services organizations and other nonprofits with a community-focused mission is unified HR and Payroll software, which can make payroll easy and seamless for your organization.
The first component you need from your payroll software is a system that makes it easy to view timesheets and their status at a glance. You’ll want to see whether timesheets have been approved, submitted, or are outstanding so that you can quickly resolve any issues before starting to process payroll. This can be accomplished through a timekeeping dashboard that enables you to quickly view the information you need and be proactive about resolving any issues. For any issues that do need to be resolved, you’ll want to be able to dig into them efficiently so no time is wasted. Your timekeeping dashboard and functionality can set you up for success as you begin to process payroll.
Your payroll software will need to be able to handle all of the complex pay scenarios that do or can occur at your organization. This may include different pay rates, labor cost allocations, and shift differentials that all must be calculated before payroll can be processed. Software that can handle and automate these calculations can help ensure accuracy and compliance every time payroll is processed.
If your nonprofit organization is like most, your workforce is made up of exempt and nonexempt employees. Some employees may split their time between different programs, departments, or shifts that are paid at differing rates. You may have certain special pay rates, secondary pay rates, or other shift differentials that all need to be accounted for.
With a unified timekeeping and payroll system in place, your nonprofit will be able to maintain a bird’s eye view of all of these factors to ensure everyone is paid fairly. In fact, many of these differentials will be applied automatically, based on the individual employee’s timekeeping. If an employee consistently works in multiple areas, labor costs can be allocated based on predetermined percentages. Or, if their time is more variable, employees can allot their time to the appropriate cost center through their time and attendance dashboard.
Even with automation tools and safeguards in place to ensure accuracy, processing payroll can still be a nerve-racking task. Your unified HR and Payroll software should provide you with the option of running a payroll analysis report as an additional step to ensure accuracy before processing. This report is essentially a test run of the current payroll period that is then compared to previous pay periods. This comparison enables you to easily spot any inconsistencies that can then be investigated and addressed accordingly. Once this step is taken, you’ll be able to process payroll with complete confidence.
In addition to collecting timesheets, cross-checking details for accuracy, and then making sure your employees are paid, your nonprofit also needs to stay on top of payroll taxes and other associated taxes that apply to nonprofit organizations.
At DATIS, we provide fully unified HR and Payroll software that offers health and human services organizations and end-to-end workforce management solution. As part of our comprehensive services, this also means we take care of the taxes for you. Our system is able to automatically calculate and deduct liens, garnishments, and various taxes that your nonprofit is responsible for. For organizations that are spread across different states or have multiple companies, we can also handle the differences in state regulations that may apply. No matter where you’re located, you’ll have accurate and compliant payroll.
Furthermore, tax codes and regulations are constantly changing and being updated. Your payroll software provider should proactively stay on top of these changes for you and make updates as necessary so that you’re always able to maintain compliance.
While processing payroll, paying taxes, and ensuring accuracy at every step along the way is important, you’ll also want a system that can provide you with the reporting capabilities you need to draw important insights and information. Your HR and Payroll system should always provide you with access to your data – allowing you to view it wherever and whenever you want. Reporting can be an important function when you need to drill down into the details of specific programming costs or track down dollars by funding source to report back to funders. Ideally, the reporting capabilities available in your system should be something you can run on your own, without assistance for a data scientist with specialized knowledge. At DATIS, our HR and Payroll platform is easy to navigate to provide you with the big-picture data or drill-down details you’re looking for.
Another important element in the payroll software you choose for your nonprofit is data security. Payroll includes plenty of sensitive employee data that should be kept secure in a cloud-based system. Similar to payroll reporting, you and your entire workforce will likely want to be able to view important information like pay stubs no matter where they’re located. A cloud-based system ensures access for your organization, catering to the needs of your modern and mobile workforce.
DATIS provides unified HR and Payroll software that countless nonprofits and human services organizations rely on for accurate and efficient payroll. Our system handles everything from distributing labor costs to calculating shift differentials automatically to ensure accuracy each and every time. As part of our unified solution, employee information, time and attendance, and payroll are all centralized in one platform that serves as your single source of truth.
To learn more about our unified HR and Payroll software that is tailored specifically to meet the needs of health and human services organizations, request a demo today and see our solution in action.