NONPROFIT PAYROLL · 501(c)(3) EMPLOYERS

Every dollar lands on the right grant. WageTime is payroll built for the audit.

A grant-funded nonprofit has to show which funder paid for each hour, with time records and controls a board and a Single Audit can lean on. WageTime splits each salary across grants at the pay line and keeps the records behind it.

Built on infrastructure processing $35B+ in payroll & taxes · 2.8M+ employees paid
SOUND FAMILIAR?

A three-person finance office, running payroll a funder will read line by line.

US nonprofits employ about 12.8 million people, roughly one in ten private-sector workers, across more than 300,000 establishments, and most of them are small (BLS). That is a business manager and a bookkeeper doing some of the most documentation-heavy payroll there is: split-funded salaries, after-the-fact effort records, and internal controls, all on a fixed grant budget.

ALLOCATION BY SPREADSHEET

One salary, five funders

Your program director is 40% on the federal grant, 25% on the state contract, 20% on a foundation award, and the rest on unrestricted. Every period, someone rebuilds that split in a spreadsheet, multiplies it out, and re-types the result into payroll and again into the general ledger. Change the percentages and every downstream number has to be redone by hand.

THE AUDIT WANTS RECORDS, NOT ESTIMATES

Effort has to be documented

Charge a salary to a federal award and the Uniform Guidance wants after-the-fact records of actual work, not the budget you planned. Personnel costs are the single largest category of disallowed costs in federal grant audits. Right now the “time and effort” behind a grant charge is a memory and a spreadsheet, reconstructed the week the monitor visits.

ONE PERSON DOES EVERYTHING

Segregation of duties is a wish

In a small shop the same person can add the employee, set the direct deposit, approve the run, and reconcile it. That gap is the one auditors flag first: the ACFE’s 2024 fraud study tied more than half of all cases to weak or overridden internal controls, with a $141,000 median loss at organizations under 100 people. A board wants to see approvals, not trust.

THE GRANT BUDGET DOESN’T FLEX

Every admin dollar is off mission

Grant budgets are fixed and watched. A per-seat contract that bills for the whole roster in a slow month, or a “call for a quote” payroll price, is hard to defend to a board that reads the functional-expense statement. The headcount that a summer program or a grant cycle swings up and down shouldn’t swing the payroll bill the same way.

NO HR DEPARTMENT, EVERY COMPLIANCE HAT

It all lands on one desk

The variable-hour roster that crosses the ACA line, the aide’s CPR card that expires next month, staff working in three states, the board report due Thursday, the year-end 1095-Cs. In an office of three, each of those is the finance director’s job after the program day ends.

Each of these gets a real product screen below, shown with sample nonprofit data.
01 · ALLOCATION AT THE PAY LINE

How do you split one salary across several grants?

WageTime allocates pay across grants, programs, and funding sources through configurable job-costing segments, so one person’s salary divides where the work happened instead of in a spreadsheet.

  • Allocate each salary across grants, programs, and funds by percentage.
  • Job-cost codes up to 40 characters, matched to your grant numbering.
  • Wages, taxes, and benefits split on the same allocation.
  • Allocation carries through to the GL export, no re-keying.
  • Close an award or change a percentage once; every report follows.
app.wagetime.com/payroll/allocation

Salary Allocation · Maria O. · Program Director

Splits to 4 fundsTies to GL
Segment codes GR-2041 · GR-3110 · GR-5507 · UNREST, matched to your grant numbering
Maria O. · Program Director
Federal Title III · 40%$2,600.00
State contract (DOA) · 25%$1,625.00
Foundation award · 20%$1,300.00
Unrestricted · 15%$975.00
Gross pay · 100% allocated$6,500.00
Wages, taxes, and benefits split on these percentagescarries into the GL export

Replaces the allocation spreadsheet, and the second re-keying into the general ledger.

02 · RECORDS, NOT ESTIMATES

What time records stand behind a grant-charged salary?

Federal awards want after-the-fact records of the work actually performed, and WageTime keeps them: every timesheet is attested, change-logged, and locked after approval, so the hours behind a grant charge are documented each cycle.

  • Employee attestation on every timesheet.
  • Audit-ready change logs and post-approval locking.
  • Time recorded to each program or grant worked.
  • Approved hours flow into the run and the allocation.
  • Break and meal rules and rounding options built in.
app.wagetime.com/time/effort

Time & Effort · Pay Period Jul 6-19

Attested & locked
120.5Hours attested
3Staff on the period
3Programs split
EmployeeHoursStatus
Maria O.Federal Title III32.0Attested
Maria O.State contract20.0Attested
James T.Youth program40.0Attested
Dana P.Food pantry28.5Change logged
Attested, logged, and locked for the periodhours flow into the run and the allocation

Replaces the reconstructed time study, and the estimate a monitor won’t accept.

03 · CONTROLS A BOARD CAN DEFEND

Can payroll show an auditor who approved what?

An auditor sees exactly that: WageTime’s role-based access separates the person who enters a change from the person who approves the run, and a full effective-dated audit log shows who did what and when.

  • Role-based access separates entry from approval.
  • Configurable approval steps before a run releases.
  • Full audit log with effective dating on every change.
  • Scheduled report distribution to board and program leads.
app.wagetime.com/admin/audit-log

Audit Log & Approvals · July Run

Duties separated
4Logged actions
2-stepApproval chain
UserActionRecorded
A. RiveraPreparerEntered pay changeJul 15, 9:02a
L. ChenFinance directorApproved payroll runJul 15, 2:41p
A. RiveraPreparerAdded employeeJul 12, 11:15a
Board treasurerApproverReviewed & releasedJul 15, 3:10p
Entry and approval held by different roleseffective-dated

Replaces the trust-based approval, and the audit trail nobody could produce.

04 · MANY PROGRAMS, ONE LOGIN

How do you run several programs or entities together?

A multi-program agency runs from one WageTime login: department-level controls and division-level overrides per program, related entities under their own EINs, and reporting per program, per entity, or consolidated across the organization.

  • Department controls and division-level overrides per program.
  • Per-entity EINs and filings, one login, combined reporting.
  • QuickBooks posting mapped by department.
  • GL export in CSV, IIF, or fixed-width for your fund accounting.
app.wagetime.com/reports/by-program

Payroll by Program · July

Posts to GL
33People paid
3Programs
ProgramGross payStatus
Youth services14 people paid$41,280.00Posted
Senior nutrition9 people paid$23,650.00Posted
Housing assistance6 people paid$19,900.00Posted
AdministrationShared costs · 4 people paid$18,420.00Allocated
Gross pay · mapped to the GL by program$103,250.00

Replaces the per-program spreadsheet reroll, and the export you reformat by hand every month.

05 · THE VARIABLE-HOUR ROSTER

How do you track ACA and benefits for seasonal program staff?

For variable-hour and seasonal program staff, WageTime tracks ACA eligibility from payroll data, keeps credentials on the employee record, and prices by the person actually paid, so a roster that shrinks between grant cycles shrinks the bill.

  • ACA look-back, hours-of-service, affordability, and 1094-C/1095-C e-filing.
  • Weighted-average overtime on multi-program, multi-rate weeks.
  • Credential and license alerts at 30, 60, and 90 days on the record.
  • Benefits elections sync to payroll deductions; 401(k) held to annual IRS limits.
  • $10 per person paid that month, so a smaller roster costs less.
app.wagetime.com/hr/aca-lookback

ACA Look-Back · Variable-Hour Staff

Measured from payroll
Hours of service measured from payroll over the look-back, tested against the full-time line
4Staff measured
1Crosses threshold
EmployeeAvg hrs/wkStatus
Dana P.Food pantry28.4Under 30
Sam K.Summer camp31.6Offer required
Priya N.After-school22.0Under 30
Marcus L.Case aide29.1Monitoring
Look-back over the stability period1095-Cs generated at year-end

Replaces the ACA spreadsheet for seasonal staff, and the payroll bill that ignores your roster.

PRICING

Simple payroll pricing. No surprises.

Full-service payroll is $10 a month per person paid that month, plus $50 a month per company, with unlimited runs. No long-term contracts, no per-run charges.

  • Full-service payroll, unlimited runs
  • Federal, state & local tax filing
  • Year-end W-2s & 1099s
  • Direct deposit, checks & pay cards
  • Contractor payments & filings
  • Off-cycle runs & bonuses, no extra fee
  • Employee paystubs & W-2 access
  • QuickBooks integration
$10/mo per person paid
+ $50/mo per company

Off-cycle runs and bonuses cost nothing extra. No long-term contracts; cancel anytime.

Example: 50 people paid × $10 + $50 company = $550 for the month

HR & hiring, onboarding, PTO, time tracking, benefits, and workers’ comp are optional add-ons, priced separately when you’re ready.

See a demo
THE INFRASTRUCTURE BEHIND WAGETIME
$35B+
in payroll & taxes paid
2.8M+
employees paid
4.3M+
W-2s & 1099s filed
100%
of tax filings automated

Nonprofit payroll FAQ

How do I split one employee’s salary across multiple grants?

Set the allocation once as percentages by grant, program, or fund, and WageTime divides that salary, its taxes, and its benefits on those percentages every run. Job-cost codes run up to 40 alphanumeric characters and match your own grant numbering, and the split carries through to the general-ledger export. Change a percentage or close an award and you edit it in one place, not across a spreadsheet and a GL.

What time records do we need to charge salaries to a federal grant?

Federal awards call for after-the-fact records reflecting the work actually performed, not budgeted estimates, backed by internal controls. WageTime timesheets carry employee attestation, an audit-ready change log, and post-approval locking, with staff recording time to each program worked. When a funder or monitor asks how a charge was supported, you produce a signed, timestamped report. Your auditor confirms how the rules apply to your specific awards.

Do nonprofits pay FUTA, and can you handle reimbursable unemployment?

501(c)(3) organizations are exempt from federal FUTA tax, and most states still cover them for unemployment while allowing a reimbursable election instead of paying SUTA contributions. WageTime files your state taxes automatically based on how your account is set up. Bring your state and your reimbursable-or-contributory election to the demo and we’ll confirm the exact setup for your organization.

Will this hold up in a Single Audit?

WageTime gives a Single Audit the two things it tests hardest on payroll: documented costs and internal controls. Salaries carry time records with attestation and locking, and role-based access plus an effective-dated audit log show entry and approval were held by different people. WageTime does not provide audit or legal advice and does not guarantee outcomes, but the control environment auditors look for is built in, not reconstructed.

Can payroll post to QuickBooks or our fund accounting by program?

Yes. Finished payroll posts to QuickBooks mapped by department, and a configurable general-ledger export in CSV, IIF, or fixed-width formats feeds the fund-accounting system you already run. Tell us your accounting system on the demo and we’ll confirm the exact flow for your setup, including how your grant and program segments map to your chart of accounts.

We run several programs and a related entity. Can one login handle all of it?

Yes. Run each program with department-level controls and division-level overrides, and see reporting per program or consolidated across the organization. Related entities, an affiliated foundation or a separately incorporated program, each run under their own EIN with their own filings from the same login, reported separately or combined. Scheduled reports distribute to the board and program managers automatically.

What does payroll cost for a nonprofit whose headcount changes with grant cycles?

$50 a month for the organization plus $10 per person actually paid that month, with unlimited runs. A summer roster of 40 costs more in July than a winter roster of 18 in January, because you pay for who was paid. Off-cycle runs, corrections, filings, and year-end W-2s and 1099s are included, with no long-term contracts: board-readable, and easy to line up against a grant budget.

Bring one split-funded position.

One employee whose salary crosses two or more grants, your program and grant codes, and the way you report to funders today. Twenty minutes with a payroll specialist on a live demo organization: you’ll watch a salary allocate across funds, see the time record that documents it, and see the audit log that shows who approved the run.

Book a 20-minute demo