Churches exempt from unemployment taxes - can I still get Washington ESD benefits if fired?

Churches can elect to be exempt from unemployment taxes in Washington, but it's not automatic. If your church chose the exemption, then unfortunately you wouldn't be eligible for regular UI benefits since no taxes were paid on your behalf. You can still file a claim though - Washington ESD will determine if your employer was paying into the system.

I had the same issue last year! Worked for a nonprofit that turned out to be exempt. The frustrating part is you won't know for sure until you file and Washington ESD reviews your claim. Took about 3 weeks for them to make the determination in my case.

This is so frustrating - I spent 45 minutes on hold trying to reach Washington ESD about this exact question last month. The automated system kept transferring me around and I eventually got hung up on. Has anyone found a better way to get through to someone who can actually answer these questions?

Religious organizations have special rules under federal law that allow them to opt out of unemployment insurance. However, some churches do choose to participate voluntarily. It really depends on what your specific employer decided to do. The key thing is that you worked there for 2 years, so if they were paying in, you should have enough work history to qualify.

ugh this happened to my sister too... worked at a church daycare for 3 years and found out they were exempt when she got laid off. she was so mad

Just to add some clarification - churches can choose to be 'reimbursing employers' instead of paying regular unemployment taxes. If they chose that option, you might still be eligible for benefits, but the church would have to reimburse Washington ESD for any benefits paid out. Either way, you should definitely file a claim.

THIS IS EXACTLY WHY I HATE DEALING WITH WASHINGTON ESD!!! The rules are so confusing and nobody explains anything clearly. Churches get special treatment while regular workers get screwed over by the system. I've been fighting with them for months over a different issue and it's like they make everything as complicated as possible on purpose.

Update: I went ahead and filed my claim online. The system accepted it and now shows 'pending' status. I guess I'll find out in a few weeks whether my church was paying unemployment taxes or not. Thanks everyone for the advice!

I work in HR for a large nonprofit and we deal with this question a lot. Religious organizations under 501(c)(3) status can elect exemption from unemployment taxes, but many choose not to because they want to provide that safety net for their employees. It's really a case-by-case decision by each organization.

Just wanted to say I feel for you - losing a job is stressful enough without having to worry about whether you'll be able to get unemployment benefits. Even if this doesn't work out, don't give up. There are other resources available.

My church actually does pay unemployment taxes voluntarily even though they could be exempt. The pastor said it was the right thing to do for their employees. Hopefully yours made the same choice!

I remember reading somewhere that if you worked for a church but in a non-religious capacity (like administrative work), the rules might be different. Not sure if that's true though - might be worth looking into.

File the claim and see what happens. worst case scenario youre in the same position you are now. best case you get benefits while you look for work. seems like a no brainer to me

This whole situation reminds me of when I got laid off from my job at a private school. Turns out they were exempt too because they were a religious institution. I was so frustrated because I had worked there for 4 years and never knew I wasn't building up unemployment eligibility. At least you're finding out now rather than after years of thinking you were covered.

I used to work for Washington ESD processing claims and this type of situation came up pretty regularly. The determination usually takes 2-3 weeks once you file. If the church is exempt, you'll get a denial letter explaining why. If they're not exempt, your claim will process normally.

Quick question - did you get any kind of severance or final paycheck that might affect your claim timing? Sometimes that can delay when benefits start even if you are eligible.

I'm dealing with a similar situation but with a different nonprofit. Been trying to get through to Washington ESD for weeks to ask about their exempt status. The phone system is absolutely terrible - I've been hung up on at least 6 times.

Hope everything works out for you! Keep us updated on what Washington ESD decides. This thread has been really helpful for understanding how the church exemption thing works.

Just a heads up - even if your church was exempt, you might still qualify for other assistance programs while you're job hunting. Don't let this be the only thing you look into for help.

This has been a really informative thread. I had no idea churches could opt out of unemployment taxes. Learn something new every day I guess.