You're passionate about advancing your mission, not managing the hassle of admin tasks. With our HR and payroll software, your nonprofit can stay focused on what truly matters.
Nonprofit HR and Payroll Software
Streamline HR and payroll to focus on your mission.
Why Nonprofits Use Paylocity
Your Work is Too Important to Slow Down
Run Quick, Accurate Payroll
- Track time spent on grant-related work to easily report on payroll expenses connected with a specific grant.
- Accurately withhold federal income tax and FICA (Social Security and Medicare) taxes from employee paychecks.
- Stay within your budget by right-sizing your payroll solution to fit your organization’s needs.
Automate HR Duties
- Give employees access to a self-service portal where they can access pay stubs, tax documents, schedules, and more.
- Get quick access to work authorizations, EEO and FLSA compliance data, industry news, certifications, and other compliance courses.
- Streamline information collection, document collection, and task completion across your workforce.
Manage Workforce Time Tracking
- Eliminate paper timesheets and reduce administrative burden.
- Enable workers to clock in via mobile app, web, kiosk, or other timeclock options.
- Minimize compliance risk with self-set schedule rules around things like age, capacity, and employee classification.
Leave it to our Experts
- Prepare and file Form 990 accurately, completely, and with ease.
- See company-level and employee-level tax setup in real-time.
- Get peace of mind with our promise to assume liability, penalty, or interest charge in the event of a Paylocity error.
Take a Data-Driven Approach
- Empower candidates or volunteers to share their preferred name, mask information that may promote bias in the hiring process, and ask optional identity questions in the application.
- Administer anonymous employee surveys to ensure you hear from your entire diverse workforce.
- Monitor and report on the diversity of your workforce to meet your nonprofit organization’s DEIA goals.
Loved by Employers and Employees
What Makes Paylocity Different?
Supporting Nonprofits Just Like Yours
Embracing Tech to Focus on Community
Learn how YMCA of Greater Grand Rapids automated its HR and payroll processes, so they could put the focus on enriching the community.
Nonprofit Digs Out of Paperwork
Discover how Universal Metro Asian Services (UMAS) streamlined onboarding, got new staff in to work faster, and acquired funding more easily.
Service Powered by Modern HR
Read how Catholic Charities New Hampshire overcame its HR and payroll complexities by upgrading to our robust, integrated solution.
related resources
Payroll,
Human Resources
Case Study
November 09, 2021
Payroll,
Human Resources
Case Study
February 25, 2021
FAQs on Nonprofit Payroll
501(c)(3) organizations are not exempt from payroll taxes and are responsible for withholding certain federal, state, and local taxes for their employees via employee paychecks.
For a nonprofit to be tax-exempt, it must be organized and operated according to section 501(c)(3) of the Internal Revenue Code. Generally, these are charitable organizations whose earnings are not distributed to shareholders.
Nonprofits pay employees the same way as for-profit organizations do! Employees are given a salary as determined by their positions and may be eligible for bonuses and other compensation, depending on the organization’s policies.
Nonprofits may use grants to cover payroll expenses, but there must be meticulous record-keeping to ensure each working employee’s time is spent on grant-related activities. It depends on the grant, so be sure to carefully read the terms before using the funds for payroll.
Volunteers can clock in and out with an employee time collection function that accurately records their working hours.
Many small nonprofits manage without an HR department, but human resources plays a crucial role in any organization. From administrative tasks like payroll and benefits administration to building company culture, HR is more important than ever — no matter the industry.
Want to Learn More?
See what makes Paylocity the best choice for nonprofits.