CHICAGO (AP) – A judge has ruled a nonprofit that provides after school services is exempt from paying unemployment taxes.
Cook County Circuit Judge James McGing on Wednesday reversed a decision made by the Illinois Department of Employment Security’s Board of Review. The board determined the nonprofit By the Hand Club for Kids was required to pay unemployment taxes because it was essentially an after school program.
The group argued it wasn’t required to provide unemployment compensation because it is a religious group. It became an issue when the nonprofit’s human resources director left her job in 2016 and applied for unemployment compensation.
With an annual budget of $8 million, the nonprofit provides hundreds of Chicago Public Schools students a Bible, field trips, meals, tutoring.
Attorney Paul Winters, representing the nonprofit, expressed pleasure over the court’s decision.
Bob Gough of the Department of Employment Security says the decision is being reviewed.
