Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: SeeSharp

Are salaries from tax-exempts taxed the same as regular incomes?


17 posted on 07/04/2014 1:05:35 PM PDT by ilovesarah2012
[ Post Reply | Private Reply | To 10 | View Replies ]


To: ilovesarah2012
Are salaries from tax-exempts taxed the same as regular incomes?

For employees? Yes. Exactly the same. The only differences in the IRS employee tax regs for non-profits have to do with retirement plans and benefits fairness testing.

BTW it is more accurate to call them non-profits instead of tax exempts. No institution is completely tax exempt. They all are subject to UBIT (unrelated business income tax). They all have to pay social security taxes, unemployment taxes, and workman's comp taxes for their employees. And most of them have to pay certain kinds of property taxes. I worked for a state university back in the 70's that had to pay thousands every year in property tax for their typewriters. The revenue was earmarked for a local school district and the state wouldn't let them out of paying it, even though they never paid a dime in tax for their real property.

18 posted on 07/04/2014 4:32:39 PM PDT by SeeSharp
[ Post Reply | Private Reply | To 17 | View Replies ]

To: ilovesarah2012

Yes, but the principals can still avoid taxes — by claiming very nice expenses from the non-profits for their activities.


20 posted on 12/15/2014 7:46:22 PM PST by expat2
[ Post Reply | Private Reply | To 17 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson