Laid-off religious workers denied jobless benefits
God may provide, but the state may not when it comes to unemployment benefits for employees laid off by churches, synagogues and other religious groups.
Carol Bronson discovered that a few months ago after she lost her secretarial job at Temple Emanuel synagogue in Virginia Beach. Bronson assumed she could draw unemployment benefits, but when she filed a claim, she was denied.
It was a hard way to learn that under Virginia law, as in many states, tax exemptions for religious organizations include freedom from paying unemployment taxes, though the IRS requires they pay Social Security and withholding taxes.
"I had no idea that there would not be any benefits for me after leaving my job," said Bronson, who worked at the synagogue for two years.
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Budget cuts, including layoffs, are one way religious congregations are coping with a recession that has slashed their income from investments or contributions.
Earlier this year, a survey by the National Association of Church Business Administration showed that 32 percent of responding U.S. churches were having economy-related difficulties, up from 14 percent in August. Twenty percent said they had laid off staff.
Not every state bars unemployment compensation to employees of religious groups.
In New York, for example, employees whose work is not religious in nature, such as a cook or a secretary, are entitled to benefits, and their employer must pay the state unemployment tax, said Karen Williamson of the New York Department of Labor.
But in Virginia, the lack of state unemployment benefits surprised Jane Dembert, who was laid off by Christ and St. Luke's Episcopal Church in Norfolk earlier this year.
Dembert was the church's director of communications and had worked there 17 years when she lost her job. She filed for state unemployment benefits and was denied.
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Coleman Walsh, chief administrative law judge with the state's employment commission, said his experience is that most people don't know faith-based groups are exempt from unemployment taxes.
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And I bet no one in the church payroll office ever told them, even if they knew!!