If you work for a not-for-profit company (such as a charity), are taxes taken out of your paycheck?

Question

Does this differ per state/area?

I'm specifically asking about New York State and the Washington, D.C. areas.

Answer 1

Payroll taxes are taken out of a paycheck for a not-for-profit company. Non-profit status doesn't have any impact on payroll taxes. No, it doesn't differ per state/area. The only difference for a state would be if you lived/worked in a state with no state income tax. New Hampshire is one of those states.

Answer 2

If you provide service to an employer and the employer pays you, you will owe taxes on that income. It doesn't matter if the employer is tax-exempt or not. You individually are not tax-exempt.

When an employer such as a charity is tax-exempt, it means that they do not pay income tax on money they receive. However persons providing service to the charity will pay income tax on the payments made by the charity.

Answer 3

People who work for non-profit organazations are taxed just the same as if they made the same money working for a for-profit organization. It's the organization itself that is exempt from many types of taxes, not their employees. If a non-profit has employees, they pay the employer taxes just like any other employer.

Answer 4

Yes. Anyone that employs employees has to take taxes out of their checks. If you are a bona fide independent contractor and paid for services you provide as a vendor to the company then you invoice them and they pay you per the invoice (no taxes taken out).

Answer 5

I believe so,which must be true in whatever state that levies an Income Tax of any kind

Answer 6

It makes no difference if they are a non-profit, you wages are treated just the same as for any other company.