The Religious Employer Separation Benefits program, administered by 501(c) Services, gives faith-based employers who are exempt from state unemployment taxes (SUTA) a way to support separated employees at a fraction of the cost of state programs. Our solution is fair, efficient, and cost-effective.
Under federal law, certain employers, including churches and other religious organizations, can opt out of paying SUTA taxes. While this saves time and money, it can leave separated employees without unemployment benefits during their transition to new work.
The U.S. Supreme Court ruling in Catholic Charities Bureau v. Wisconsin confirmed and expanded the right of church-affiliated nonprofits to completely exit the state unemployment system. This decision creates new opportunities for religious employers to provide benefits in ways that align with their mission and budget.
The Religious Employer Separation Benefits program allows these employers to offer meaningful benefits to separated employees, similar to what a state program would provide, but with more flexibility and significantly lower costs.
501 includes several services to reduce risk and minimize unemployment expenses for nonprofits. Our Religious Employer option is exclusively available to 501(c)(3) religious organizations. This program includes a customizable set of services that reduce the administrative burden, support former employees, and control costs
To help nonprofits efficiently manage their businesses, the Religious Employer Separation Program by 501 offers several other services:
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