§ 563 — Non-profit organizations

§ 563. Non-profit organizations. 1. Definition. A "non-profit\norganization" shall mean any corporation, unincorporated association,\ncommunity chest, fund, or foundation organized and operated exclusively\nfor religious, charitable, scientific, literary or educational purposes,\nno part of the net earnings of which inures to the benefit of any\nprivate shareholder or individual.\n 2. Exclusions. In addition to services not included pursuant to the\nprovisions of section five hundred eleven, the term "employment" does\nnot include services rendered for a non-profit organization by\n (a) a duly ordained, commissioned, or licensed minister of a church in\nthe exercise of his ministry, or by a member of a religious order in the\nexercise of duties required by such order,\n (b) a lay member elected or appointed to an office within the\ndiscipline of a bona fide church and engaged in religious functions;\n (c) a person employed at a place of religious worship as a caretaker\nor for the performance of duties of a religious nature, or both, unless\nvoluntary election has been made pursuant to the provisions of section\nfive hundred sixty-one of this article;\n (d) a person who\n (1) receives rehabilitative services in a facility conducted for the\npurpose of carrying out a program of rehabilitation for individuals\nwhose earning capacity is impaired by age or physical or mental\ndeficiency or injury or\n (2) is given remunerative work in a facility conducted for the purpose\nof providing such work for persons who cannot be readily absorbed in the\ncompetitive labor market because of their impaired physical or mental\ncapacity;\n (e) an incarcerated individual of a custodial or penal institution;\n (f) a person who participates in a youth service program designed to\nfoster a commitment to community service and occupational and\neducational development and who, while participating in that program,\nperforms services in the community or attends school and receives a\nstipend designed to cover expenses incurred in performing services or\nattending school, and is eligible for an award or scholarship upon\nleaving the program.\n 3. Coverage. Notwithstanding the provisions of sections five hundred\nsixty and five hundred sixty-two, a non-profit organization\n (a) shall become liable for contributions under this article\n (1) if it has paid cash remuneration of one thousand dollars or more\nin any calendar quarter and such liability shall commence on the first\nday of such quarter or\n (2) if it has employed four or more persons on each of twenty days\nduring a calendar year or the preceding calendar year, each day being in\na different calendar week, and the liability shall in this event\ncommence on the first day of the calendar year, and\n (b) shall cease to be liable for contributions as of the first day of\na calendar quarter next following the filing of a written application to\nthis effect provided the commissioner finds that\n (1) it has not paid cash remuneration of one thousand dollars or more\nin any of the four calendar quarters preceding such day and\n (2) has not employed four or more persons on each of twenty days\nduring the current or the preceding calendar year, each day being in a\ndifferent week.\n 4. Election of payments in lieu of contributions. A non-profit\norganization, or a group of such organizations, liable for contributions\nunder this article, but not subject to taxation under the federal\nunemployment tax act pursuant to the provisions of paragraph (8) of\nsubsection (c) of section thirty-three hundred six of that act, may\nelect to become liable for payments in lieu of contributions as of the\nfirst day of any calendar year by filing with the commissioner a written\nnotice to this effect before the beginning of such year or, if the\norganization was not liable in the preceding calendar year, by filing\nthe notice not later than thirty days after the end of that calendar\nquarter in which the event rendering it liable occurred. The\ncommissioner may for good cause shown extend the time for the filing of\nsuch notice.\n 5. Obligations upon election. (a) A non-profit organization which is\nliable for payments in lieu of contributions shall pay into the fund an\namount equal to the amount of benefits paid to claimants and charged to\nits employer's account in accordance with the provisions of paragraph\n(e) of subdivision one of section five hundred eighty-one on the basis\nof remuneration paid on or after the date on which such liability became\neffective. The amount of payments so required shall be determined by the\ncommissioner as soon as practicable after the end of each calendar\nquarter or any other period. Such amount shall be payable at such times\nand in such manner as the commissioner may prescribe and, when paid, the\nemployer's account of the non-profit organization shall be discharged\naccordingly.\n (b) If non-profit organizations elect payments in lieu of\ncontributions as a group, the members of the group shall be severally\nand jointly liable for payments of amounts equal to the amounts of\nbenefits paid to claimants and charged to the employer's accounts of all\nmembers of the group.\n The commissioner may prescribe conditions and methods for such group\nelections and for the discharge of the obligations and responsibilities\nof the group and its members.\n (c) If a non-profit organization was liable for contributions under\nthis article before nineteen hundred sixty-nine and elected payments in\nlieu of contributions when such election first became available under\nthis section, the payments it is required to make shall include benefits\ncharged on the basis of weeks of employment which began before the date\non which such election took effect but shall not be greater than the sum\nby which a balance in its employer's account as of such date is exceeded\nby the amount of benefits charged on and after that date. The balance in\nthe employer's account as of such date shall for the purposes of the\nforegoing provisions be deemed to include contributions paid on or\nbefore January thirty-first, nineteen hundred seventy-one on the basis\nof wages paid in the last calendar quarter of nineteen hundred seventy.\n 6. Termination of election. (a) A non-profit organization may\nterminate its election to become liable for payments in lieu of\ncontributions as of the first day of any calendar year by filing a\nwritten notice to this effect with the commissioner before the beginning\nof such year.\n (b) The commissioner may cancel at any time such election of a\nnon-profit organization which has failed to make any of the payments\nrequired hereunder within thirty days after the commissioner has\nnotified it of the liability for and the amount of such payment. Such\ncancellation shall remain in force and effect until the non-profit\norganization files a new notice of election in accordance with the\nprovisions of subdivision four after having satisfied conditions and\nrequirements prescribed by the commissioner for this purpose.\n (c) If such election is terminated by a non-profit organization or\ncancelled by the commissioner, the non-profit organization shall remain\nliable for payments in lieu of contributions with respect to all\nbenefits charged to its account on the basis of remuneration paid before\nthe date on which such termination or cancellation took effect.\n 7. Assessment and collection of payments in lieu of contributions. The\namount of payments in lieu of contributions due hereunder but not paid\nupon notice shall be assessed and collected by the commissioner,\ntogether with interest and penalties, if any, in the same manner and\nsubject to the same conditions in which contributions due from other\nemployers may be assessed and collected under the provisions of this\narticle.\n