Many non-profit organizations are exempt from income tax.
But their employees are not.
You must still withhold income tax from the pay of your employees, however there are special rules for social security, Medicare and federal unemployment tax for employees of non-profit organizations.
Publication 15A, Employer's Supplemental Tax Guide gives you further details in the section called Employees of Exempt Organizations.
For resources discussed in each lesson, please visit the Lesson 10 Supplement.
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