)
or https:// means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.
Like other employers, exempt organizations that compensate workers are generally subject to employment taxes when they compensate workers. The following exceptions may apply, however:
-
Exemption from FUTA (unemployment) tax for section 501(c)(3) organizations
-
An elective exemption from FICA (Social Security and Medicare) for churches and certain church-controlled organizations
-
Exemption of payments for certain services performed by ministers or members of religious orders from FICA and FUTA taxes
-
Exclusion from FICA of compensation paid to students
Return to Life cycle of a public charity
Return to Life cycle of a private foundation
Return to Life cycle of a social welfare organization
Return to Life cycle of a labor organization
Return to Life cycle of an agricultural or horticultural organization
Return to Life cycle of a business league (trade association)