How much would they receive in unemployment? Would there be any way for us to pay the difference? And to pay for their health insurance and any other benefits they get? I want the teachers to be covered, but it seems like there has to be a way to do that that doesn’t involve us paying full tuition the whole time school is closed.
|
Retention bonus to true up wages when they return so it doesnt offset UI. |
Many daycares are nonprofits, and most non profits do not pay into unemployment. Those teachers would not be eligible for unemployment. I work at a church run daycare in this situation. |
That doesn’t sound right. Non profit employers/employees pay taxes. |
It’s a church and a 501c3. Tax exempt. |
I run a 501c3 and we most definitely are required to pay unemployment insurance. |
many nonprofits have the option to pay into unemployment insurance or cover the cost directly reimbursing to the government. |
But either way, the employee is eligible for unemployment benefits. A (former) employee doesn’t really care how the employer makes payments into the system. |
I’m a preschool teacher in Virginia. I was laid off from a church based childcare center last year and when I tried to file for unemployment, I was told that I wasn’t eligible. I contacted the HR worker at the church who confirmed that as a non profit they don’t pay taxes or unemployment insurance. |
Straight from the Virginia tax website
“My company has been defined as a nonprofit tax-exempt organization by the federal Government. Do we have to file unemployment taxes? This tax exemption is for corporate income tax. It does not apply to employment taxes. Virginia law specifically exempts from unemployment taxes only nonprofits companies that have a 501 C3 federal tax exemption and have less than 4 employees for 20 weeks in the year. All other non-profit employers are required to file as is any other business Churches, however, are always exempt from UI reporting.” |
That's a church thing not for all non-profits. Also around here most childcare is not non-profit |
Yes, but there are also quite a few church based childcare centers and preschools. If they laid off their teachers, they would be completely without income and not eligible for unemployment. That’s a horrible position to put someone in. |
The churches had the option of paying into the system and chose not to, leaving their employees with no protection. Yes, I get it, they have limited funds. But those that have to pay manage to do so. |
This. And if your preschool is a nonprofit, make a tax-deductible donation to it. These funds could then be applied to such a bonus payment upon teachers’ rehire. |
The center may not reopen at all of the owners have to go out of business and do something else for a living. A center's profit margin, thin as it is, may be the only source of income for the owners. If we are still getting paid, and can afford to pay tuition, that's the best way to keep everyone afloat, both the teachers and the people who employ them. |