God may provide, but the state may not when it comes to unemployment benefits for employees laid off by churches, synagogues and 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, tax exemptions for religious organizations include freedom from paying unemployment taxes. The groups still must 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.
Neither did Rabbi Howard Mandell of Temple Emanuel. The synagogue had no knowledge of Virginia tax law when it decided on a layoff, he wrote in an e-mail.
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 churches in the United States were having economy-related difficulties, up from 14 percent in August.
Twenty percent said they laid off staff.
For those who are made jobless, unemployment benefits are a big piece of the social safety net. In Virginia, payments range from $54 to $378 weekly. Benefits are available only to people whose employers paid the unemployment tax.
Jane Dembert made that discovery after getting 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.
The Rev. C. Berkley Ford of Christ and St. Luke's said the cutback was a painful choice. He said the church was grappling with lower revenue and higher demand for services such as its soup kitchen. He gave his own cost-of-living pay raise back to the church.
"We have no say over whether or not an employee who loses their job for economic reasons is entitled to collect unemployment insurance," he said. "That's determined by the state agency."
Dembert is allowed to stay on the church's health insurance policy for 18 months, though she must pay 100 percent of the premiums.
Coleman Walsh, chief administrative law judge with the employment commission, said his experience is that most people don't know faith-based groups are exempt from unemployment taxes.
Sarah Scott Thomas, spokeswoman for the Episcopal Diocese of Southern Virginia, said that's true in her faith community, which announced on Friday the layoffs of three employees at the diocese's headquarters. She said people mistakenly view churches as nonprofit organizations, subject to the same tax regulations covering secular nonprofit groups that pay into unemployment.
Despite their tax exemption, religious groups can voluntarily pay unemployment benefits. That's true for the Catholic Diocese of Richmond, which self-insures rather than pay into the state fund.
The arrangement allows a laid-off parish staffer, parochial school employee or diocesan worker to file a claim with the unemployment commission. If the commission approves the claim, it bills the diocese for the total amount of benefits the worker will receive.
The diocese reimburses the state and then recovers that sum from the school, parish or Catholic entity where the employee formerly worked. The diocese adopted the self-insurance model in 1981 to match working conditions of secular nonprofits, said John Barrett, the diocese's finance director.
Rex Frieze, an Orlando, Fla.-based expert on church accounting and taxes, said religious groups should tell workers during hiring that they won't qualify for unemployment benefits.
"If they leave the church, they won't be covered, and that is a shock for many churches," he said.
Steven G. Vegh, (757) 446-2417, steven.vegh@pilotonline.com
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to use some words...
...that some of the people now looking for a handout would use.....
"the Lord will provide"
(cuz the Commonwealth won't)
Come on, Al!
I have only had one other employer than the military in the last 27 years and even I know that the unemployment insurance is part of the 7 1/2 percent withheld for Social security in my W2. So . . . if I had a lower percentage withheld than 7 1/2 percent, I should be asking why . . .
And, by the way, what a bogus title for this article. No one is "keeping" anyone's unemployment insurance from him. Ya gotta pay it to collect it. That's the nature of insurance. Anyone expect that someone could buy a house on Sandbridge, never insure it, then collect money to replace it when it falls down in a hurricane???
Not important
You know TJ, he was the guy who wrote the Declaration of Independence (not a law like the 1st Amendment, but still kinda important).
No, it's not important. Importance in a democracy is based on debate and compromise of everyone involved. Placing importance of opinion on fame and class is feudalism.
"You will not find
"You will not find "Separations of church and state in the 1st Amendment. It's a man made P.C. catch word that is used when talking about religion and the govenment." -Chris J
For what it's worth, I'm pretty sure the 1st Amendment is also "man made". As for "P.C. catch word": "seperation of church and state" was coined by Thomas Jefferson. You know TJ, he was the guy who wrote the Declaration of Independence (not a law like the 1st Amendment, but still kinda important).
James Madison is the father of the Constitution. He wrote the nation's first "freedom of religion" clause (it's in the VA constitution) after determining that states ruin churches (and vice versa). I'm also pretty sure that both TJ and JM predate that whole "P.C. catch word" craze.
Pray and Obama may send you some money.
Pray and Obama may send you some money. The Federal Govt. has borrowed half of every dollar in the next budget cycle.
Sure they do
Unemployment in VA is not an exemption, the employers pay it, they don't deduct it from wages.
They certainly do. It's not listed on the pay stub, but it is included in the cost of employment that determines pay. It's hidden because they don't want too many voters seeing they're paying other people not to work.
Religious workers not receiving unemployment
Personally, i dont care who gets free money from the state i feel you have all these non working welfare recipents and food stamps recipients and no one dares question the free money that goes there some recipients are selling the benefits giving to them to purchase drugs alcohol etc.. so why debate over whether people that has done good for people should receive any help i dond understand the people of the commonwealth
"had no knowledge of Virginia tax law when..."
"had no knowledge of Virginia tax law when it decided on a layoff"
The Rabbis and pastors certainly had knowledge of the laws when it came time to not pay unemployment taxes.
Now they cry great big crocodile tears and blame the state.
At least the Richmond Diocese cares about/for their employees in this matter.
Exemptions and Bad Laws at Workers Expense
Unemployment in VA is not an exemption, the employers pay it, they don't deduct it from wages. Unfortunately that is part of the problem on our (un)commonwealth. Employers do what they can to avoid paying unemployment. In our state, unemployment is designed to punish the unemployed by making it difficult to obtain and nearly impossible to continue getting. Firstly, one has to be unemployed for no fault of one's own and as we are an "at will" state, employers usually create a reason to "fire" you so you don't qualify. Then, if you do somehow qualify via group layoff, you have to give weekly information including name of individual interviewing you in your job search. The reality of faxing, emailing resumes and filling out applications doesn't work with that system so you can apply to 10 places a day and not qualify. As for religious institutions; if they are hiring people they should have to pay unemployment, SSI, legal wages with deductions and, for full-timers, provide benefits. There should be NO exemptions for religious institutions that other non-profits do not get.
Ummm, let's see . . .
I could actually read my W2, where all of my deductions are summed up, even if my employer "forgot" to tell me we had an exemption or I could just keep the blinders on, then let a reporter write a major article on my lack of situational awareness when I get laid off . . .
In the LDS Church ...
... workers aren't even paid. It's what's called a "lay ministry". Every priest, elder, high priest, bishop, council member, and president works on a volunteer basis. We all have jobs "in the real world". And every contribution to the church goes to support the business of the church, such as keeping the lights on in the chapel and supporting the missionaries.
We also do a lot of charity work, including a church welfare system and an education fund. Every tithe and offering is voluntary, and it all goes to helping people. You can learn more at lds.org and mormon.org.
No excuse for the rabbi not
No excuse for the rabbi not knowing about unemployment taxes and benefits. He acts as employer and must know about all employer related issues and responsibilities.
COBRA
There's another JOKE. If you have never had to pay COBRA then let me for warn you. When they say you can keep your insurance by using COBRA you better have a nice chunk of change set aside because you sure aren't going to pay your premiums with Un-employemnt. My 32 year old single daughter was laid off last year and in order to keep her Blue Cross insurance in effect it cost her 365.00 a month!! Think how much it would cost to keep a family plan in force.
Un-Employment
Well I hope that no-one ever has to rely upon VA Unemployment because they pay you less than 100.00 a week. So you get a tank of gas, $50.00 bucks for groceries and maybe pay your water bill. You sure can't live off of it.
Health benefits
The comment that Jane has to pay 100% of her health insurance cost is misleading. She has been COBRA'd. EVERYBODY (businesses or churches) that provide insurance to their employees have to offer it when the employee leaves. And it is totally up to the employee to pay the entire premium or drop the coverage. There is nothing shameful about this. What is wonderful is that she had health insurance through the church in the first place. I get a partial payment before taxes for my premium, but I pay it out of what I make. And, yes, I work for a church.
You do have to watch your own finances
You do have to watch out for your own finances. If you're planning on having unemployment available as a fall back, you need to make sure you're eligible.
Employees should have known when they got the job
Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.
You will not find "Separations of church and state in the 1st Amendment. It's a man made P.C. catch word that is used when talking about religion and the govenment. The federal government allows any organization that meets the requirement to be tax exempt not only for religous organizations. Charitable groups, scientific organizations, social clubs, fraternal societies, political organizations, veteran organizations to name a few that meets the IRS requirements.
paying in??
While I agree if you don't pay in, you don't collect, why is it that our Social Security is almost "played out? Oh, now I remember, we've been giving it away to those that haven't paid in..... got it now. Amazing. Think we're calling them something else though.... immigrants or something like that. Maybe illegal immigrants. What a rip. Ya'll come, ya hear?
Businesses
Churches are businesses and should be held to the same standard as any other business. I believe they should be treated as any other non-profit, though it seems that some should be considered for-profit. It's too bad that some didn't know they were not covered including the heads of church. It's no excuse that they didn't know. I'd be willing to bet they DID know, they just didn't tell their employees. What? Businesses have employees, therefore churches are businesses. Hello!
Hmmmm
Two things: maybe the churches and other organizations should have to have the employees sign a waiver before they start to avoid this. Secondly, the church seems to be acting just like a business, so why not treat them like one? She has to pay 100% of her health care? They could not even help her with that? SHAMEFUL!