Unemployment compensation help

[BabyMine]

My Mom was layed off last friday. She filled for UC on monday and was told today that becasue she worked at a daycare that was part of a church she doen't get UC. The daycare is profit based. Is this true? She has been told yea and no by 2 people at the UC office.

[dhano923]

Unemployment is state specific. Did you try checking your state's UE website for info?

[ha98ed14]

It depends if the employer pays into the unemployment system on behalf of their employees. Some employers don't have to, and I think non profits are among them. I also think some employers are exempted if they employ a small number of people.

I would get your mom to check exactly who was her employer. You say the daycare is at a church. A church is usually presumed to be a tax exempt religious org; i.e. they are non profit. If they have any revenue-earning affiliated activities where the revenues are paid to a person or shareholders (i.e. profit), then these activities have to be filed under a corporation separate from the religious non-profit (church), otherwise the church would lose it's non profit status. If the revenue from the daycare business is reinvested into the church or the daycare, then they are not violating their non profit status.

Another situation is that the church could be leasing out some of it's space to be used by a for profit daycare center. That is the case of a daycare at the local Episcopal church here. The buildings and grounds are owned by the church, but a woman runs a for-profit daycare and rents the space from the church. In her case, she is a separate corporation from the Episcopal church and I believe as an employer she does have to pay into unemployment insurance for her employees. She employs about 10 people.

It is quite possible that your mom's employer never paid into the unemployment insurance system, and therefore she cannot collect because nothing was ever paid in on her behalf.

[wellyes]

It is quite possible that your mom's employer never paid into the unemployment insurance system, and therefore she cannot collect because nothing was ever paid in on her behalf.

Yes. You can get the answer by looking at the details on one of her pay stubs, if she got them.

[BabyMine]

It depends if the employer pays into the unemployment system on behalf of their employees. Some employers don't have to, and I think non profits are among them. I also think some employers are exempted if they employ a small number of people.

I would get your mom to check exactly who was her employer. You say the daycare is at a church. A church is usually presumed to be a tax exempt religious org; i.e. they are non profit. If they have any revenue-earning affiliated activities where the revenues are paid to a person or shareholders (i.e. profit), then these activities have to be filed under a corporation separate from the religious non-profit (church), otherwise the church would lose it's non profit status. If the revenue from the daycare business is reinvested into the church or the daycare, then they are not violating their non profit status.

Another situation is that the church could be leasing out some of it's space to be used by a for profit daycare center. That is the case of a daycare at the local Episcopal church here. The buildings and grounds are owned by the church, but a woman runs a for-profit daycare and rents the space from the church. In her case, she is a separate corporation from the Episcopal church and I believe as an employer she does have to pay into unemployment insurance for her employees. She employs about 10 people.

It is quite possible that your mom's employer never paid into the unemployment insurance system, and therefore she cannot collect because nothing was ever paid in on her behalf.


Yes. You can get the answer by looking at the details on one of her pay stubs, if she got them.

Drats, the profits go back into the church. I forgot about looking on her pay stubs. Thanks everyone. It looks like she is out of luck.