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Emily Nguyen-Smith

Do churches pay unemployment tax in Washington ESD system?

I'm trying to figure out if my former church employer was supposed to be paying into the Washington ESD unemployment system. I worked as a part-time administrative assistant for 18 months at a small community church and just got laid off due to budget cuts. When I tried to file for unemployment benefits, Washington ESD is saying they have no wage records for my employer. The church is telling me they don't pay unemployment taxes because they're a religious organization. Is this right? I'm really confused about whether I can even qualify for benefits.

Churches and religious organizations in Washington have the option to elect coverage under the unemployment insurance system, but they're not automatically required to participate like regular employers. If your church didn't elect coverage, then they wouldn't have been paying UI taxes and you unfortunately wouldn't be eligible for benefits from that employment.

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So there's no way for me to get benefits from that job? That's really frustrating since I worked there for over a year.

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Unfortunately not from that specific employment. However, if you had other covered employment in the base period, you might still qualify based on those wages.

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wait what?? i worked at a church daycare for 2 years and never knew about this. does this mean i cant get unemployment either if i get fired?

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It depends on whether your specific church elected to participate in the unemployment insurance program. You'd need to check with Washington ESD or ask your employer directly.

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ugh this is so confusing. why don't they have to pay like everyone else?

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I've been dealing with Washington ESD for months on various issues and this type of situation is really common. Religious organizations get special treatment under both federal and state law. The good news is that Washington ESD can help you figure out if you have other qualifying wages. I'd suggest trying to call them, but honestly getting through is nearly impossible these days.

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Yeah I've been trying to call for days and either get a busy signal or get hung up on after waiting forever.

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I had the same phone problem until I found Claimyr. It's a service that calls Washington ESD for you and gets you connected to an actual person. Check out claimyr.com - they have a video demo at https://youtu.be/7DieNd3C7zQ that shows exactly how it works. Saved me hours of frustration.

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This is exactly why the unemployment system is broken. Churches make millions but don't have to contribute to helping their workers when they lose their jobs. Meanwhile regular businesses have to pay these taxes whether they want to or not.

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I mean, I get the frustration, but it's been this way for decades. It's written into the law because of separation of church and state issues.

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Separation of church and state should mean they don't get special privileges either. If they're going to operate like businesses they should follow the same rules.

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Some churches do choose to participate voluntarily. Mine did when I worked there as a bookkeeper.

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OP, you should definitely check if you have any other employment in your base period. The base period for Washington ESD is typically the first four of the last five completed calendar quarters before you filed. Even if the church wages don't count, you might have other qualifying wages from different employers.

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I did have a retail job before the church but that was almost 2 years ago. Would that still count?

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It depends on exactly when you worked there and when you filed your claim. Washington ESD has specific rules about the base period. You should definitely mention all your employment history when you talk to them.

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this whole thing is making me paranoid. how do i even find out if my church pays unemployment taxes? do i just ask my boss directly?

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You can ask your employer, or you can check with Washington ESD. They should be able to tell you if your employer is in their system.

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If you need to talk to Washington ESD about this, seriously consider using Claimyr. I wasted so much time trying to get through on my own before I discovered that service.

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I used to work for a large church that did elect unemployment coverage. The pastor explained it was part of their commitment to treating employees fairly. It's really up to each individual religious organization though.

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That's nice that some churches do that voluntarily. Mine definitely didn't and I'm paying the price now.

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Yeah it's unfortunate. You might want to ask them about it directly - sometimes smaller churches just don't know they have the option.

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Just to clarify something - it's not just churches. Other religious organizations like synagogues, mosques, temples, etc. also have this same option to elect or not elect unemployment coverage. It's any organization that qualifies as a religious organization under the law.

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Good point. I guess I was just thinking about churches because that's where I worked.

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Wait, so if I work for a religious nonprofit like a food bank run by a church, would that be covered or not?

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That's a more complex situation that depends on how the organization is structured and whether they've elected coverage. You'd need to check with Washington ESD specifically about your employer.

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Great, another thing to worry about. Why can't they just make this stuff simple?

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i had a friend who worked at a church and when she got laid off she found out they didn't pay unemployment. she was so mad she wrote a letter to the church board about it

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Did anything come of that? I'm thinking about doing the same thing.

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they told her they would 'consider it for the future' but nothing changed. at least she tried though

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OP, definitely pursue checking on your other employment history. Also, some people don't realize that Washington ESD has an alternate base period option if you don't qualify under the regular base period. It uses more recent wages. Might be worth exploring if you had any other work more recently.

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I didn't know about the alternate base period thing. How do I ask about that?

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When you talk to Washington ESD, just ask them to check both the regular and alternate base periods to see if you qualify under either one.

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This is probably a dumb question but if churches don't pay unemployment taxes, do they still have to pay into workers comp and stuff like that?

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Workers comp is separate from unemployment insurance. Religious organizations still generally have to carry workers compensation coverage for their employees.

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ok good to know. the whole thing is confusing with all these different programs

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Been through this exact situation. Worked at a small church for 3 years, got laid off, no unemployment. It's legal but it sucks. Make sure you apply anyway because Washington ESD might find other qualifying wages you forgot about.

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That's what I'm hoping for. Did you end up qualifying based on other work?

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Actually yes, I had some temp work from a few years earlier that I totally forgot about. The Washington ESD system found it when they did the wage search.

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Just want to add that if you do need to contact Washington ESD about this, their phone system is absolutely horrible right now. I spent literally hours trying to get through before someone told me about Claimyr. It's a service that calls for you and gets you connected to an agent. Worth every penny to avoid the phone maze.

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I keep hearing about this Claimyr thing. Does it actually work?

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Worked for me. Got connected within an hour when I'd been trying on my own for weeks. They have a demo video that explains it all.

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This whole situation highlights why people need to ask about unemployment coverage when they start a new job. It's not something most people think about until it's too late.

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You're absolutely right. I never thought to ask about it when I started working there.

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Same here. Most people assume all employers pay into unemployment but that's not always true.

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If it makes you feel better OP, even if your church wages don't count, Washington ESD sometimes finds wages from employers you forgot about or didn't think reported properly. Definitely worth having them do a complete wage search.

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Thanks, that does make me feel a bit better. I'm going to keep pursuing this and see what they find.

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Quick question - if a church DOES elect to pay unemployment taxes, do their employees know about it? Like do they tell you when you're hired?

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They're not required to specifically tell you, but you'd see unemployment taxes being deducted from your paychecks if they're participating in the system.

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Ah okay, that makes sense. I should probably check my old pay stubs then.

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the fact that churches can opt out but regular businesses cant is so unfair. my husband's construction company has to pay all these taxes but the megachurch down the street doesn't? makes no sense

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Exactly! It's a huge loophole that screws over workers.

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I get the frustration but it's been established law for decades. First Amendment protections and all that.

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OP, definitely don't give up. File your claim anyway and let Washington ESD do their research. You might be surprised what they find in their wage database. And if you need to talk to them about it, that Claimyr service people mentioned is legit - my sister used it last month.

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Thanks for the encouragement. I'm going to file and see what happens. Worst case scenario they just deny it, but at least I'll know for sure.

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That's the right attitude. You've got nothing to lose by trying.

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