A church or religious order employer is a church or association of churches or an organization that operates primarily for religious purposes and is operated, supervised, controlled, or principally supported by a church, convention, or association of churches. Religious Organizations must be recognized by the Internal Revenue Service (IRS) as a church.
Employees of a church or religious order are not subject to Unemployment Insurance (UI), Employment Training Tax (ETT), and State Disability Insurance (SDI) but are subject to Personal Income Tax (PIT) withholding. Employers can elect UI and SDI coverage for these employees.
Registration Requirements
To register for an employer payroll tax account number, gather the following information:
- Name and Social Security number of all responsible parties (Individual Owners, Co-Owners, General Partners).
- Name and Social Security number of all officers, members, partners (Corporations, Limited Liability Company (LLC), Limited Liability Partnership (LLP), and Limited Partnership (LP).
- Physical business address and mailing address.
- Business phone number.
- Valid email address (contact person and business).
- Date of first payroll when wages exceed $100.
- Federal Employer Identification Number (FEIN). A FEIN can be obtained by going to the IRS website.
- Industry Description - What is the industry, product, or service that represents the greatest portion of your sales or revenue?
- Previous EDD employer payroll tax account information, if applicable.
- Business Name as recorded with the California Secretary of State (SOS).
- Provide the following information, access your SOS account to confirm information as needed:
- Exact Legal Business Name as spelled and registered with SOS (Corporations, LLCs, LLPs, LPs).
- SOS ID Number:
- Corporation: California Corporation ID number.
- LLC: California LLC SOS ID number.
- Provide the following information, access your SOS account to confirm information as needed:
- Doing Business As (DBA), if applicable.
- Name, phone number, address (if different from physical business or mailing address) for business contact person.
- Provide a copy of the 501(c)(3) exemption letter (must include 170(b)(1)(A)(i) section of the Internal Revenue Code).
Once you are ready to register for a payroll tax account number, you will need to enroll in e-Services for Business.
If you are an employer, visit Enroll in e-Services for Business as an Employer. If you are a representative, visit Enroll in e-Services for Business as a Representative.
Optional
If you elect to enroll in Unemployment and Disability Insurance Elective Coverage, have the following documents available as you complete your registration for an employer payroll tax account number.
- Application for Unemployment and Disability Insurance Elective Coverage for Employees Excluded Under the California Unemployment Insurance Code (DE 1378) (PDF)
- Selection of Financing Method by a Nonprofit Organization Described in Section 501(c)(3) of the Internal Revenue Code (DE 1SNP) (PDF)
Additional Resources
Information Sheets
- Exempt Employment (DE 231EE) (PDF)
- Non Profit and/or Public Entities (DE 231NP) (PDF)
- Specialized Coverage (Elective Coverage for Exempt Workers) (DE 231SC) (PDF)
Additional Information Sheets are available online at Payroll Taxes – Forms and Publications.
Other Resources
- Potential Liability for Unemployment Insurance Benefits When Electing the Reimbursable Method of Financing Under the California Unemployment Insurance Code (CUIC) (DE 1378F) (PDF)
- Disability Insurance Elective Coverage (DE 2565) (PDF)
- California Secretary Of State Registration
- California Secretary Of State FAQ: Do I have to qualify or register a foreign (out–of–state or out–of–country) business entity?