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. However, Virginia law specifically exempts from unemployment taxes only nonprofit companies that have a 501 C3 federal tax exemption and have less than four 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.
