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Nonprofit payroll with program-level approvals
A funding allocation and an employee’s paycheck answer different questions. Tidwell works alongside your CPA or attorney to process nonprofit payroll while preserving the supporting program approvals for later reporting.
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General information, not legal advice.
Identify the employer and the approved pay arrangement
Gather the employee list, hourly or salary instructions, scheduled paydays and authorized changes. Ask the CPA to resolve tax treatment and the attorney to address uncertain worker arrangements. A grant label, stipend description or volunteer title should not decide payroll treatment by itself.
Make program allocation a reviewable attachment
For staff whose work spans programs, retain the time or allocation basis approved by management. Reconcile the allocation total to the payroll run before distributing costs. If a grant period changes, document how the revised coding applies without silently changing the underlying wages.
Schedule the run before a grant reimbursement arrives
California generally requires at least two designated paydays per calendar month, with exceptions. Grant reimbursement timing should not determine when an employee is paid. Establish who approves hours when the program director is absent and how known wages will be processed if records are incomplete.
Sources: DLSE FAQ - Paydays, pay periods, and the final wages
Complete the employee record as programs expand
EDD requires reporting a newly hired employee within 20 calendar days of starting work. Put the start date and responsible reporting person in the onboarding checklist. Keep confirmations with the payroll file rather than assuming the grant administrator has handled the employer’s submission.
Sources for nonprofit employer payroll routines
Nonprofit bookkeeping and payroll guidance
Organize your funded-program pay cycle
Tell us which records need attention and who approves the next steps.
Payroll service starts at $125 a month. See pricing