If your nonprofit incorrectly classifies an individual as an independent contractor, it can be held liable for employment taxes for that worker, plus a penalty. Even worse, you can be liable for some of his taxes! An employee is to be paid using the system of a W-2, which includes withholdings for Social Security and [...]

As with its employees the nonprofit should maintain an accurate and current record of its volunteers. First and foremost please understand that an employee cannot volunteer their time to their employer, and once a volunteer becomes an employee, for income tax purposes, they cannot go back to being an uncompensated volunteer without first officially resigning their [...]

Form W-9 is used by an organization to request the name, address, and Social Security number for an independent contractor who will be providing services to the organization. Another term for an independent contractor would be consultant or freelancer. There's a distinction made between independent contractors and employees. They are treated differently in how their [...]

A general rule is that anyone who performs services for your organization is your employee if you can control what will be done and how it will be done. The nonprofit should maintain an accurate and current record of employees. If the organization pays an individual more than $100.00 during the year, then that person [...]