Section 563. Non-profit organizations

1.  Definition.  A  "non-profit
  organization" shall mean any  corporation,  unincorporated  association,
  community  chest, fund, or foundation organized and operated exclusively
  for religious, charitable, scientific, literary or educational purposes,
  no part of the net earnings of  which  inures  to  the  benefit  of  any
  private shareholder or individual.
    2.  Exclusions.  In  addition to services not included pursuant to the
  provisions of section five hundred eleven, the  term  "employment"  does
  not include services rendered for a non-profit organization by
    (a) a duly ordained, commissioned, or licensed minister of a church in
  the exercise of his ministry, or by a member of a religious order in the
  exercise of duties required by such order,
    (b)  a  lay  member  elected  or  appointed  to  an  office within the
  discipline of a bona fide church and engaged in religious functions;
    (c) a person employed at a place of religious worship as  a  caretaker
  or  for the performance of duties of a religious nature, or both, unless
  voluntary election has been made pursuant to the provisions  of  section
  five hundred sixty-one of this article;
    (d) a person who
    (1)  receives  rehabilitative services in a facility conducted for the
  purpose of carrying out a  program  of  rehabilitation  for  individuals
  whose  earning  capacity  is  impaired  by  age  or  physical  or mental
  deficiency or injury or
    (2) is given remunerative work in a facility conducted for the purpose
  of providing such work for persons who cannot be readily absorbed in the
  competitive labor market because of their impaired  physical  or  mental
  capacity;
    (e) an inmate of a custodial or penal institution;
    (f)  a  person who participates in a youth service program designed to
  foster  a  commitment  to  community  service   and   occupational   and
  educational  development  and  who, while participating in that program,
  performs services in the community or  attends  school  and  receives  a
  stipend  designed  to  cover expenses incurred in performing services or
  attending school, and is eligible  for  an  award  or  scholarship  upon
  leaving the program.
    3.  Coverage.  Notwithstanding the provisions of sections five hundred
  sixty and five hundred sixty-two, a non-profit organization
    (a) shall become liable for contributions under this article
    (1) if it has paid cash remuneration of one thousand dollars  or  more
  in  any  calendar quarter and such liability shall commence on the first
  day of such quarter or
    (2) if it has employed four or more persons on  each  of  twenty  days
  during a calendar year or the preceding calendar year, each day being in
  a  different  calendar  week,  and  the  liability  shall  in this event
  commence on the first day of the calendar year, and
    (b) shall cease to be liable for contributions as of the first day  of
  a calendar quarter next following the filing of a written application to
  this effect provided the commissioner finds that
    (1)  it has not paid cash remuneration of one thousand dollars or more
  in any of the four calendar quarters preceding such day and
    (2) has not employed four or more  persons  on  each  of  twenty  days
  during  the  current or the preceding calendar year, each day being in a
  different week.
    4. Election  of  payments  in  lieu  of  contributions.  A  non-profit
  organization, or a group of such organizations, liable for contributions
  under  this  article,  but  not  subject  to  taxation under the federal
  unemployment tax act pursuant to the  provisions  of  paragraph  (8)  of
  subsection  (c)  of  section  thirty-three  hundred six of that act, may

  elect to become liable for payments in lieu of contributions as  of  the
  first day of any calendar year by filing with the commissioner a written
  notice  to  this  effect  before  the  beginning of such year or, if the
  organization  was  not  liable in the preceding calendar year, by filing
  the notice not later than thirty days after the  end  of  that  calendar
  quarter   in   which   the  event  rendering  it  liable  occurred.  The
  commissioner may for good cause shown extend the time for the filing  of
  such notice.
    5.  Obligations  upon election. (a) A non-profit organization which is
  liable for payments in lieu of contributions shall pay into the fund  an
  amount  equal to the amount of benefits paid to claimants and charged to
  its employer's account in accordance with the  provisions  of  paragraph
  (e)  of  subdivision one of section five hundred eighty-one on the basis
  of remuneration paid on or after the date on which such liability became
  effective. The amount of payments so required shall be determined by the
  commissioner as soon as practicable  after  the  end  of  each  calendar
  quarter  or any other period. Such amount shall be payable at such times
  and in such manner as the commissioner may prescribe and, when paid, the
  employer's account of the non-profit organization  shall  be  discharged
  accordingly.
    (b)   If   non-profit   organizations   elect   payments  in  lieu  of
  contributions as a group, the members of the group  shall  be  severally
  and  jointly  liable  for  payments  of  amounts equal to the amounts of
  benefits paid to claimants and charged to the employer's accounts of all
  members of the group.
    The commissioner may prescribe conditions and methods for  such  group
  elections  and for the discharge of the obligations and responsibilities
  of the group and its members.
    (c) If a non-profit organization was liable  for  contributions  under
  this  article before nineteen hundred sixty-nine and elected payments in
  lieu of contributions when such election first  became  available  under
  this section, the payments it is required to make shall include benefits
  charged  on the basis of weeks of employment which began before the date
  on which such election took effect but shall not be greater than the sum
  by which a balance in its employer's account as of such date is exceeded
  by the amount of benefits charged on and after that date. The balance in
  the employer's account as of such date shall for  the  purposes  of  the
  foregoing  provisions  be  deemed  to  include  contributions paid on or
  before January thirty-first, nineteen hundred seventy-one on  the  basis
  of wages paid in the last calendar quarter of nineteen hundred seventy.
    6.   Termination  of  election.  (a)  A  non-profit  organization  may
  terminate its  election  to  become  liable  for  payments  in  lieu  of
  contributions  as  of  the  first  day  of any calendar year by filing a
  written notice to this effect with the commissioner before the beginning
  of such year.
    (b) The commissioner may  cancel  at  any  time  such  election  of  a
  non-profit  organization  which  has  failed to make any of the payments
  required  hereunder  within  thirty  days  after  the  commissioner  has
  notified  it  of  the liability for and the amount of such payment. Such
  cancellation shall remain in  force  and  effect  until  the  non-profit
  organization  files  a  new  notice  of  election in accordance with the
  provisions of subdivision four after  having  satisfied  conditions  and
  requirements prescribed by the commissioner for this purpose.
    (c)  If  such  election  is terminated by a non-profit organization or
  cancelled by the commissioner, the non-profit organization shall  remain
  liable  for  payments  in  lieu  of  contributions  with  respect to all
  benefits charged to its account on the basis of remuneration paid before
  the date on which such termination or cancellation took effect.

    7. Assessment and collection of payments in lieu of contributions. The
  amount of payments in lieu of contributions due hereunder but  not  paid
  upon  notice  shall  be  assessed  and  collected  by  the commissioner,
  together with interest and penalties, if any, in  the  same  manner  and
  subject  to  the  same  conditions in which contributions due from other
  employers may be assessed and collected under  the  provisions  of  this
  article.