Kuma v. Greater New York Conference of Seventh-Day Adventist Church
- Analisa Torres
- 1:19-cv-08484
- U.S. District Court · Southern District of New York
- 4
In Kuma v. Greater New York Conference, Judge Torres granted dismissal because FICA did not require withholding for Kuma’s ministerial work.
Hermann Kuma’s claims against Greater New York Conference of Seventh-Day Adventist Church, Henry Beras, Alonzo Smith, and Earl Knight were ended when the court granted the motion to dismiss and closed the case.
What happened
Kuma v. Greater New York Conference of Seventh-Day Adventist Church involved Hermann Kuma’s contract and negligence claims over the church’s failure to withhold Social Security and Medicare taxes while he was a pastor. Kuma alleged that this caused him to be denied Social Security and Medicare benefits.
The court held that federal law excludes a minister’s service in carrying out ministry from employment covered by the Federal Insurance Contributions Act. It also found that the complaint made no allegations showing how the three individual defendants personally violated the law or injured Kuma.
Judge Analisa Torres granted the defendants’ motion to dismiss for failure to state a claim and directed the Clerk of Court to close the case.
The detailed version
- Kuma v. Greater New York Conference of Seventh-Day Adventist Church · No. 1:19-cv-08484
- Analisa Torres
- Aug. 28, 2020
Background
Hermann Kuma sued Greater New York Conference of Seventh-Day Adventist Church, Henry Beras, Alonzo Smith, and Earl Knight. He asserted breach-of-contract and negligence claims arising from a dispute about tax withholding under the Federal Insurance Contributions Act (FICA). The defendants moved to dismiss under Federal Rule of Civil Procedure 12(b)(6), which allows dismissal when a complaint does not state a legally sufficient claim.
According to the complaint, Kuma received theological training and served as a GNYC pastor from October 1, 1996, through June 30, 2017. GNYC classified him as an employee, issued him an employee identification card and W-2 forms, but did not withhold FICA contributions for him. After Kuma retired in 2017, the Social Security Administration informed him that he was not eligible for Social Security benefits because his employer had not withheld FICA taxes. The complaint also alleged that he was ineligible for Medicare benefits.
Court’s Analysis
The court explained that a complaint must include enough factual matter to make the claimed entitlement to relief plausible. Accepting the complaint’s factual allegations as true for purposes of the motion, the court nevertheless concluded that the claims failed as a matter of law.
The court held that FICA excludes from covered employment services performed by a church minister in carrying out ministry. It stated that a minister includes a person ordained, commissioned, or licensed by a religious body and authorized to conduct religious worship. Because the court found that FICA exempted GNYC from withholding contributions on behalf of a person employed as a pastor, it concluded that dismissal was warranted. The court also explained that ministers not covered by FICA are generally subject to the Self-Employment Contributions Act, and that ministers may receive an exemption from mandatory contributions under that statute. The court found that GNYC’s alleged classification of Kuma as an independent contractor did not change the result because GNYC had no obligation to withhold FICA taxes for him.
The court separately concluded that the complaint alleged no facts concerning Beras, Smith, or Knight in their individual capacities. It therefore stated that the action should also be dismissed as to those defendants.
Disposition
Judge Analisa Torres granted the defendants’ motion to dismiss. The order directed the Clerk of Court to terminate the motion at ECF No. 19 and close the case. The opinion does not state whether the dismissal was with or without prejudice.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.