Like other employers, exempt organizations that compensate workers are generally subject to employment taxes when they compensate workers. The following exceptions may apply, however:
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Exemption from FUTA (unemployment) tax for section 501(c)(3) organizations
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An elective exemption from FICA (Social Security and Medicare) for churches and certain church-controlled organizations
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Exemption of payments for certain services performed by ministers or members of religious orders from FICA and FUTA taxes
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Exclusion from FICA of compensation paid to students
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