When the tax exempt organization has employees, then the organization is responsible for Federal Income Tax withholding and Medicare and Social Security taxes. These organizations are also responsible for Federal Unemployment Tax. Before hiring an employee, the organization needs a federal Employer Identification Number (EIN). When the organization has employees working for them, then the organization is accountable for state, federal and local taxes. The organization acting as an employer for the employees must withhold certain taxes...
Employment Taxes for Exempt Organizations?
October 31, 2020