Are Religious And Non-Profit Organizations Liable For Unemployment Taxes?

Services performed in the employ of a church or convention or association of churches; or an organization that is operated primarily for religious purposes and which is operated, supervised, controlled or principally supported by a church or convention or association of churches are not considered covered employment. Non­profit Organizations are liable for Alabama Unemployment Tax unless they are exempt from income tax under section 501(a) of the Internal Revenue Code and are classified as a Section 501(c)(3) exemption organization. Non­profit organizations that are classified under Section 501(c)(3) become liable for Alabama Unemployment Taxes only after they have had 4 or more individuals in employment in each of 20 different weeks within either the current or preceding calendar year.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

Additional Employment Law for Employees Articles

Search LawInfo's Employment Law for Employees Resources