Guide to 501(c) Business Types
Explore various 501(c) organization types and their payroll tax implications for informed decisions.
501(c) organization types and payroll tax treatment
This guide outlines all types of 501(c) tax-exempt organizations, with a focus on how each is treated for payroll purposes. While some types have broader tax exemptions, the emphasis here is on employee payroll tax obligations.
Note: Check currently only supports 501(c)(3) organizations. However, understanding the full range of 501(c) types helps inform potential future support and partner conversations.
Key:
- Employees subject to regular payroll taxes = Federal income tax, Social Security, and Medicare taxes apply unless otherwise noted.
- Special rules = Unique treatment may apply (e.g., benefit handling, reporting obligations).
501(c) organization types
- 501(c)(1): Corporations organized under an Act of Congress.
- 501(c)(2): Title-holding corporations for exempt organizations.
- 501(c)(3): Religious, educational, charitable, scientific, and literary organizations. Employees subject to regular payroll taxes.
- 501(c)(4): Civic leagues and social welfare organizations. Employees subject to regular payroll taxes.
- 501(c)(5): Labor, agricultural, and horticultural organizations. Employees subject to regular payroll taxes.
- 501(c)(6): Business leagues and chambers of commerce. Employees subject to regular payroll taxes.
- 501(c)(7): Social and recreational clubs. Exempt from federal income tax on member income; employees subject to regular payroll taxes.
- 501(c)(8): Fraternal beneficiary societies. Employees subject to regular payroll taxes.
- 501(c)(9): Voluntary employee beneficiary associations. Special rules may apply for employee benefits.
- 501(c)(10): Domestic fraternal societies. Employees subject to regular payroll taxes.
- 501(c)(11): Teachers' retirement fund associations. Special rules may apply for retirement benefits.
- 501(c)(12): Benevolent life insurance associations and mutual companies. Employees subject to regular payroll taxes.
- 501(c)(13): Cemetery companies. Employees subject to regular payroll taxes.
- 501(c)(14): State-chartered credit unions and mutual reserve funds. Employees subject to regular payroll taxes.
- 501(c)(15): Mutual insurance companies. Employees subject to regular payroll taxes.
- 501(c)(16): Cooperative organizations to finance crop operations. Employees subject to regular payroll taxes.
- 501(c)(17): Supplemental unemployment benefit trusts. Special rules may apply for unemployment benefits.
- 501(c)(18): Employee-funded pension trusts (created before June 25, 1959). Special rules apply for pension benefits.
- 501(c)(19): Veterans' organizations. Exempt from federal income tax; employees subject to regular payroll taxes.
- 501(c)(20): Group legal services plan organizations. Employees subject to regular payroll taxes.
- 501(c)(21): Black lung benefit trusts. Special rules may apply for black lung benefits.
- 501(c)(22): Withdrawal liability payment funds. Special rules may apply for withdrawal liability payments.
- 501(c)(23): Veterans' organizations (created before 1880). Employees subject to regular payroll taxes.
- 501(c)(24): Section 4049 ERISA trusts. Special rules apply for ERISA-related benefits.
- 501(c)(25): Real property title-holding corporations with multiple parents. Employees subject to regular payroll taxes.
- 501(c)(26): State-sponsored health organizations for high-risk individuals. Employees subject to regular payroll taxes.
- 501(c)(27): State-sponsored workers' compensation reinsurance organizations. Employees subject to regular payroll taxes.
- 501(c)(28): National Railroad Retirement Investment Trust. Special rules apply for railroad retirement benefits.
- 501(c)(29): Qualified nonprofit health insurance issuers. Employees subject to regular payroll taxes.
If a company is registered under a 501(c) designation not currently supported, please reach out via ticket to Check. Gathering these cases helps shape future product support decisions.
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Last updated on June 6, 2025