Tip pools to paychecks, synced.
Schedule shifts, track hours, and run payroll—front-of-house tips to back-of-house wages, all connected.
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Built for the chaos of restaurant life.
From tips to taxes, we handle the headaches so you can handle dinner rush.

Restaurant Tip Management
Geofence technology detects when someone clocks in from the parking lot or leaves without punching out.

Multi-Location Restaurants
Homebase syncs all your restaurants into one system so you run payroll once—not separately for each location.
Run restaurant payroll in four simple steps.
Build schedules, track time, and pay your team—all connected so nothing falls through the cracks.
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1. Hire
Post jobs, track applicants, and onboard new hires.
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2. Schedule
Add your team. Build instant, automated schedules.
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3. Track
Shifts sync to time clocks to keep your team on track.
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4. Pay
View hours and wages. Run payroll quickly and accurately.
behind every number is a happier team.
Small businesses that ❤️ Homebase.
Hourly workers conquering their shifts.
Hours tracked (and counting)
FROM TIP POOLS TO PAYCHECKS, DONE
Nonprofit payroll is how a tax-exempt organization pays its employees and contractors, withholds the right taxes, and files the required forms on time. It works much like business payroll. The difference is the extra rules around funding sources, volunteers, and public reporting.
As long as you have paid staff, you have payroll obligations to your team and to the government. Getting it right keeps you compliant and builds trust with your donors.
The rules are mostly the same, but the context is stricter. You still classify workers, withhold taxes, and file forms. What's different is that nonprofits often pay from grants and donations, report executive pay publicly, and follow special rules for volunteers.
A few areas set nonprofit payroll apart:
Report payroll by the function it serves: program, fundraising, and management and general. Track how much of each person's time goes to each area, then record those wages accordingly on your financial statements and IRS Form 990. This shows funders that money goes where you say it does.
Clear functional reporting also makes audits and grant renewals far smoother. Good payroll records are the backbone of that reporting.
Yes, nonprofits pay payroll taxes. Tax-exempt status covers income tax, not employment tax. You must withhold federal income tax and FICA (Federal Insurance Contributions Act) for Social Security and Medicare, then match the employer share of FICA. Most 501(c)(3)s are exempt from federal unemployment tax, but state rules still apply.
In short, "tax-exempt" never means "exempt from payroll taxes." Treating it that way is one of the most common and costly mistakes nonprofits make.
You can pay salaries from most of your revenue: individual donations, grants, fundraising events, program or membership fees, and earned income from mission-related goods or services. The key is to follow each funder's rules and keep clear records of which source covers which wages.
Diversifying your revenue also protects payroll. When one source dips, others can keep your team paid.
Your board should set executive pay through a documented, yearly review based on comparable salaries at similar organizations. Pay must be "reasonable," not excessive, to protect your tax-exempt status. The person being paid should never take part in their own compensation decision.
To stay on solid ground, your board can:
Nonprofits withhold federal income tax, plus Social Security and Medicare (FICA) from each paycheck, and match the employer share of FICA. You may also handle state and local income tax withholding and SUTA (State Unemployment Tax Act). Most 501(c)(3)s are exempt from FUTA (Federal Unemployment Tax Act).
Here's the quick breakdown:
Yes, grant funds can pay salaries when the grant allows personnel costs. You must follow the funder's guidelines and document that wages match the time spent on grant activities. Keep timesheets and allocation records by pay period and project, since funders and auditors will ask for them.
Without that paper trail, you risk grant clawbacks or findings during a review. Time tracking integrated with payroll can help make this part easier for nonprofits with hourly teammates.
Classify by control. If you set someone's schedule, tools, and how they work, they're an employee. If they run their own work and invoice you, they're an independent contractor. Misclassifying workers can lead to penalties, back taxes, and lawsuits, so get it right from the start.
The forms depend on the classification:
Yes. Most tax-exempt organizations file an annual information return, IRS Form 990, even though they don't pay federal income tax. The version you file depends on your size and type. It's generally due the 15th day of the fifth month after your fiscal year ends.
The main versions are:
Yes. Nonprofit employees still pay income and payroll taxes, but they can access tax-advantaged retirement plans. A 403(b) lets employees set aside pre-tax pay for retirement, much like a 401(k). Some nonprofits also offer a 457(b) plan for extra pre-tax savings.
Highlighting these benefits helps you compete for talent on a tight budget. They show your team you care about their future, not just their paycheck.
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