Volunteers

This is framed more as an HR topic than accounting one, but I'm going to guess many of the nonprofit financial staff out there where multiple hats. I like to say that I do all of the "non-fun" stuff in a nonprofit; accounting, HR and IT.

Many of us use volunteers, but are we doing it the right way? Volunteers work with us because they care about the cause and want to help so by nature may be disinclined to take action against us should something go wrong. But that is not something we should count on and you will be exposing your organization to unnecessary risk if you do so. This article presents something for us to think about and these resources from the Nonprofit Risk Management Center can help set up an run an effective volunteer program.

Do You Have Employees?

The you need the Exempt Employer's Toolkit from the IRS. All the info on payroll taxes (**spoiler alert** Nonprofits have to pay payroll taxes!) what documents you need to get from your employees. And if you have any consultants you work with there is guidance there to on how to report their earnings.

For the state regulations and rules I recommend the CA Chamber of Commerce's website, they have lots of nice worksheets and details on twhat the difference is between a consultant and an employee, exempt vs, nonexempt employees, etc.

Boot Camp Questions & Answers

Some questions from the latest boot camps. More to come!

Q: What is the pay rate for comp time?

A: According to HRCalifornia.com you must pay at the rate the time is used, not when it was accrued. Compensatory time off is a very tricky issue and any employer currently offering it or thinking of offering it needs to be aware of all the issues surrounding it. HRCalifornia.com recommends you not offer it for the most part, and be sure never to give comp time to exempt employees.

Q: Do internal transfers count as income under SB 1262 rules for determining when we need to get an audit?

A: No, not according to the text. Only "gross revenue." But be careful how you are booking and describing the transfers to be sure that you are not calling it income, if indeed it is not.

Q: Do we have to pay California state sales tax on auction items?

A: Check out this earlier post.

Employment Eligibility Verification (I-9 form)

Assuming that the person keeping the books at your nonprofit is also doing some or all of the HR work I give you this: The I-9 Employment Eligibility Verification form was updated in June of this year. It includes changes to what documents are consider OK to prove eligibility to work.

All employers are required to fill these out for new employees and after November 7th 2007 you have to use the new form, not any old ones you have laying about.

So take heed and get the new form here.

Thanks Kim!