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A non profit (501c3 designation) would be exempt from FUTA but not CA ETT or CA SUI. The state of California does give you different options on how to pay this. One option is the calculate and pay these amounts like any other taxpayer. The other option is a reimbursement method. Below is information from California's web site. Here is the link to the page. http://www.taxes.ca.gov/exemptbus.shtml
State Payroll Taxes (Employment Development Department)
Nonprofit organizations* are subject to Unemployment Insurance (UI), Employment Training Tax (ETT), State Disability Insurance (SDI)** and state Personal Income Tax (PIT) withholding.
However, nonprofit entities that have an exemption under Section 501(c)(3) of the Internal Revenue Code (IRC) have a choice in the method of financing their unemployment costs. A nonprofit entity may elect to:
I do not believe that there is an exception for churches. Please give me a moment and I will look into that for you.
Employees of a church or convention or association of churches or an organization that operates primarily for religious purposes and is operated, supervised, controlled, or principally supported by a church or convention or association of churches are not subject to UI, ETT, and SDI but are subject to PIT withholding. Ministers who are duly ordained, commissioned, or licensed in the exercise of their ministry and members of a religious order in the exercise of duties required by such order are not subject to UI, ETT, SDI, or PIT withholding. http://www.edd.ca.gov/pdf_pub_ctr/de231ee.pdf
It looks like churches are exempt from SUI and ETT.
Yes, that is correct.
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