This article discusses the basic requirements for a tax-exempt organization's compliance with employment tax and wage reporting compliance. A tax-exempt organization must-- Obtain an employer identification number Determine employee status and verify work eligibility Request employee withholding form and verify employee identification information Calculate and pay advance employee earned income credit and notify employees about the EIC Calculate and deduct employees' income tax, Social Security, and Medicare amounts Make required deposits of taxes withheld plus any related employer taxes according to the instructions in Circular E (Publication 15) PDF File Forms 941 (or 944) and 940 (if required) and Form W-3, and furnish copies of Forms W-2 to employees File Form 945, Annual Return of Withheld Federal Income Tax PDF to report income tax withheld from non-payroll payments, such as pensions, IRAs, gambling winnings, and backup withholding Furnish required information returns File Form 1096 to transmit these returns to the IRS File Form 8027, Employer's Annual Information Return of Tip Income PDF to report tip income and allocated tips. This generally applies to tax-exempt organizations who have service employees, such as wait staff at a country club exempt under Code section 501(c)(7). Interactive training Learn more about the benefits, limitations and expectations of tax-exempt organizations by attending 10 courses at the online Small to mid-size tax exempt organization workshop. Additional information Return due dates for exempt organizations employment tax returns Return to Life Cycle of a Public Charity Return to Life Cycle of a Private Foundation Return to Life Cycle of a Social Welfare Organization Return to Life Cycle of a Labor Organization Return to Life Cycle of an Agricultural or Horticultural Organization Return to Life Cycle of a Business League (Trade Association)
