Do you have volunteers, independent contractors or employees working for your not-for-profit (NFP) organisation? It’s important to work out the types of NFP workers you have as this may affect the tax treatment of transactions between the person and your organisation.
In most cases:
- volunteers don't have to pay any tax on payments or benefits they get as a volunteer
- NFP organisations don't have to withhold PAYG amounts or pay fringe benefits tax on payments they make to volunteers.
The tax and super obligations differ for employees and independent contractors. You may have to withhold tax or pay superannuation (also known as super guarantee) on behalf of your employees. Find out what you must do at Super for employers.
If you need help, phone our dedicated NFP Advice Line on 1300 130 248 or our Indigenous helpline on 13 10 30 (8 am to 6 pm, Monday to Friday, except public holidays).
For more information, see: