NJ Unemployment – Employees of a Religious Organization Are Not Entitled to Overtime

The Federal and New Jersey State tax law exempt churches and religious organizations from paying unemployment taxes.  In 1935 the Federal Government enacted the Federal Unemployment Act of 1935 and in 1970 it was amended to exempt “service performed in the employ of a church … or an organization which is operated primarily for religious purposes and which is operated, supervised, controlled or principally supported by a church.”  New Jersey also has the same exemption.

This means that if you are employed by a church, a teacher at a religious school or work for company that is operated by a religious organization, you will not be entitled to unemployment compensation if you are terminated.  However, some religious organizations have created there own policies regarding unemployment, but they are typically much less and shorter in duration than unemployment from the government.

July 22, 2011 – Tom McKinney – Castronovo & McKinney, LLC