Does a small church of about 20 members in New York need workers comp or disability insurance? We pay some money to about five people who wo...

Question

Does a small church of about 20 members in New York need workers comp or disability insurance? We pay some money to about five people who work in the church, including the minister. The money we give them is more like a gift because taxes are not taken out.

Answer

The church is tax exempt but the employees are not. This church is headed for trouble and should consult counsel expert in non-profit organizations as soon as possible.