Do Nonprofit Organizations Have To Pay Suta?


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Shane Richardson Profile
Most non-profit organizations will not have to pay suta, however they do still face paying some forms of taxation; such as employee tax. Any normal business is prone to paying a whole host of taxes that can massively cut into their profits, but at the end of the day they are still planning on taking any profits for their own gain so it is a fair system.

However, a non-profit organization such as a charity obviously has different intentions with what they want to do with any money made. Therefore they are quite rightly exempt from income tax. However, due to the fact that many workers of non-profit organizations still command a wage, they are still liable for employee tax and medical care such as medic-aid in the United States.

Non-profit organization's can be defined by the following criteria:

• Set up for charitable purposes with all profits going to the charity
• Set up for scientific or religious purposes with all income going into further research

Non-profit organizations play a great role in raising and making billions of US Dollars a year for all the charities in the world and this amount of money would significantly less, if they had to pay the same amount of tax as normal businesses do.

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