If your not-for-profit (NFP) employs staff, you have the same tax and super obligations as other businesses. These are designed to ensure employees receive their entitlements and that employers contribute fairly to the tax system.
Some of these obligations include:
- Pay as you go (PAYG) withholding – if your NFP has employees, you must withhold a portion of their pay for tax. You must register your organisation with us when you are required to withhold from payments to your employees or your independent contractors (or both). Different due dates apply depending on your NFP's circumstances so use the information on our website to identify when you need to take action.
- Fringe benefits tax (FBT) – you must pay FBT on certain benefits you provide to an employee (or their family or other associates), that is in a different form to salary or wages. Examples of fringe benefits may include allowing them to use a work car for private purposes or covering the costs of expenses like gym memberships or school fees. If you lodge your own FBT return, the return and payment is due by 21 May each year; other dates may apply if you use a tax agent.
- Superannuation guarantee (SG) – you must calculate and pay SG for your eligible workers. Your NFP must offer employees a choice of super fund and pay super contributions for eligible employees by the quarterly cut-off dates, which are available on our website. Late or missed payments incur the superannuation guarantee charge (SGC).
- Single Touch Payroll (STP) – each time you pay your employees, you'll need to report their tax and super information to us through Single Touch Payroll (STP) enabled payroll software. STP provides us with real-time reporting of employee payments, tax withheld, and super contributions.
- Employee or independent contractor – when hiring a worker, you must classify them correctly so you can correctly manage your PAYG withholding, super and other obligations. Penalties and charges may apply if you get it wrong.
- Record keeping – all NFPs are required to keep accurate and complete records of all transactions relating to their tax and super affairs in an accessible form for 5 years. A good record keeping system will help you manage your tax obligations.
These tax and super obligations have a number of different due dates, which can be found on the linked pages for each topic. Staying on top of these dates and obligations will help your organisation avoid penalties and ensures your employees receive their entitlements.
Help and support
You can use our online platform ATO CommunityExternal Link to find answers to questions other users have asked, or to ask your own tax and super questions. Or you can call our dedicated NFP advice line on 1300 130 248, between 8:00 am and 6:00 pm, Monday to Friday.
Each month you can read our articles in the Not-for-profit newsroom and, if you haven't already, subscribeExternal Link to be alerted when we publish each edition.