This Week's LessonWeek of July 14
Our lesson this week examines the topic of unemployment tax exemptions. The Executive Summary provides a concise review of the key points. Before we get started, test your knowledge by completing the following quiz.
A youth pastor is terminated for misconduct. The youth pastor files a claim for unemployment benefits with a state agency. Will the church be responsible for providing unemployment benefits to its former youth pastor? Would it make any difference if the terminated employee was a secretary or custodian (someone not performing pastoral duties)?
Instructions Click on the correct answer for each of the following questions.
The following activities ordinarily are exempt from state unemployment taxes: (1) Service performed in the employ of a church, a convention or association of churches; (2) service performed in the employ of an unincorporated church controlled elementary or secondary school; (3) service performed in the employ of an incorporated religious elementary or secondary school if it is operated primarily for religious purposes and is operated, supervised, controlled, or principally supported by a church or a convention or association of churches; (4) service performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order. Only in Oregon are services performed on behalf of a church subject to unemployment tax.