Are Religious And Non-Profit Organizations Liable For Unemployment Taxes?

Services performed in the employ of a church or convention or association of churches; or an organization that is operated primarily for religious purposes and which is operated, supervised, controlled or principally supported by a church or convention or association of churches are not considered covered employment. Non­profit Organizations are liable for Alabama Unemployment Tax unless they are exempt from income tax under section 501(a) of the Internal Revenue Code and are classified as a Section 501(c)(3) exemption organization. Non­profit organizations that are classified under Section 501(c)(3) become liable for Alabama Unemployment Taxes only after they have had 4 or more individuals in employment in each of 20 different weeks within either the current or preceding calendar year.

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