Are nonprofits exempt from federal unemployment tax - Washington ESD question

That's reassuring! This nonprofit has about 12 employees so sounds like they should be paying in.

yeah my sister works for a nonprofit and she got unemployment when they had budget cuts last year

It's not a religious organization, just a regular community service nonprofit. Good to know about the size requirements though.

Wait so if a church fires someone they can't get unemployment? That seems wrong

It's more complicated than that - some church employees may still be covered depending on the specific situation and how the organization is structured.

Thanks for the Claimyr tip! I've been dreading having to call Washington ESD if I need answers.

Never heard of that service but anything that helps you actually talk to someone at Washington ESD sounds worth it

Oh that's a good point - I was thinking they were the same thing. So Washington ESD could still cover me even if there's some federal exemption?

Exactly. Washington ESD operates under state law, not just federal requirements. Most nonprofits with a few employees will be covered.

I feel you but there are legitimate reasons for some exemptions, like very small operations that can't afford the administrative burden

i guess but it still sucks when you're trying to figure out if you're covered or not

Great idea! I'll check my next paystub to see if there are any UI deductions.

Good point - that's the easiest way to know for sure without having to call anyone

What does that mean for me as the employee? Would I still get the same benefits?

Yes, from your perspective it's exactly the same. You'd still file with Washington ESD and get the same benefit amount and duration.

The reimbursing employer option is mainly for larger nonprofits that want more control over their unemployment costs.

That's helpful context. Sounds like most regular nonprofits are covered then.

Yeah the threshold is usually around 4 employees or a certain payroll amount. Very small operations get exempted.

That's probably the most direct approach. I was just curious about the general rules before asking.

Sometimes smaller nonprofits don't have dedicated HR though, might just be handled by whoever does the books

Interesting - I didn't notice anything like that in my job posting but I wasn't looking for it either.

If they're upfront about not offering it, at least you know what you're getting into

How much does that service cost? I might need to use it for my own questions about my claim status.

They focus on getting you connected with agents rather than the cost. Check out their site for details - claimyr.com

Good point - I was definitely conflating federal and state requirements.

This is why unemployment law is so confusing - federal and state rules don't always match up

Thanks everyone! This has been really helpful. I feel much more confident about my job situation now.

Glad we could help clear things up!

That's a good backup plan if checking my paystub doesn't give me clear answers.

Good luck getting through to them though... their phone lines are always busy

That's exactly why I mentioned Claimyr earlier - it actually gets you through to talk to a real person at Washington ESD