Do nonprofits pay unemployment tax - confused about my eligibility after layoff
I got laid off from a nonprofit organization last month and I'm trying to figure out if I can file for unemployment benefits. My friend said nonprofits don't pay into the unemployment system so their employees can't collect benefits, but that doesn't sound right to me? I worked there for 2 years as a program coordinator and they definitely took taxes out of my paycheck. When I try to file my claim on the NYS Department of Labor website, it asks for my employer information but doesn't say anything about nonprofit status. Has anyone else worked for a nonprofit and successfully collected unemployment? I'm really stressed about this because I need the benefits to cover my rent while I look for another job.
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Liam Fitzgerald
Your friend is wrong - most nonprofits in NY do pay unemployment insurance taxes just like regular businesses. There are some very specific exemptions for certain religious organizations and small nonprofits with fewer than 4 employees, but the vast majority of nonprofit workers are covered under the unemployment system. You should definitely file your claim with NYS Department of Labor. When you file, just enter your nonprofit employer's information normally.
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Mei Lin
•Thank you! That's such a relief. I was panicking that I wouldn't be eligible. I'll go ahead and file my claim today.
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GalacticGuru
yeah i worked for a nonprofit food bank for 3 years and collected unemployment when they had budget cuts. took about 2 weeks for my claim to get approved, no issues at all with the nonprofit status
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Amara Nnamani
The confusion comes from the fact that nonprofits can choose to either pay unemployment taxes quarterly like regular employers, or they can elect to reimburse the state directly for benefits paid to their former employees. But either way, you as the employee are still eligible for benefits. The NYS Department of Labor doesn't care which payment method your employer chose - your eligibility is based on your work history and wages, not your employer's tax structure.
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Giovanni Mancini
•Wait, so does that mean it takes longer to get approved if the nonprofit does the reimbursement thing instead of paying taxes?
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Amara Nnamani
•No, the processing time should be the same either way. The NYS Department of Labor handles the benefit payments regardless of how the employer pays into the system.
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Fatima Al-Suwaidi
I had trouble getting through to NYS Department of Labor when I needed to verify my nonprofit employment history for my claim. Kept getting busy signals for weeks. Finally used a service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Way easier than trying to call myself and getting hung up on constantly.
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Mei Lin
•How much does something like that cost? I'm already tight on money from being unemployed.
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Fatima Al-Suwaidi
•It was worth it for me because I was losing weeks trying to get through on my own. The peace of mind knowing I could actually talk to someone about my claim status was huge.
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Dylan Cooper
Just make sure you have all your employment documentation ready when you file. Nonprofits sometimes have weird payroll systems or use different terminology for job titles that can confuse the NYS Department of Labor system. I had to submit additional wage verification because my nonprofit called me a 'community outreach specialist' but the system didn't recognize that title initially.
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Sofia Morales
ugh the whole system is so confusing!! why cant they just make it simple - if you worked somewhere and got laid off you should get benefits period
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Javier Garcia
I completely understand your confusion! I went through the same thing when I got laid off from a youth mentoring nonprofit last year. Like others have said, most nonprofits in NY do pay into unemployment insurance. What helped me was gathering all my pay stubs before filing - they show the various deductions including unemployment insurance contributions. Also, don't let the website's generic questions throw you off - just fill it out exactly like you would for any other employer. The nonprofit status won't affect your eligibility as long as you meet the standard work history and wage requirements. You've got this!
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