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Monthly Archives: March 2018

Unemployment Insurance FAQ: Answered

unemployment insurance faq

Unemployment Insurance can be difficult to navigate for nonprofits and determining your best options can be an overwhelming process. Here are a few common frequently asked unemployment insurance questions…answered.

Q. What is SUTA?

A. The State Unemployment Tax Act, Better known as SUTA, is a form of payroll tax used to pay unemployment benefits for employees who lost jobs through no fault of their own. SUTA is a counterpart to FUTA, the federal unemployment insurance program.

Q. Who pays the SUTA Tax?

A. In most states, employers are solely responsible for paying state unemployment insurance taxes to fund their state’s unemployment insurance system.

Q. Are nonprofits, government and tribal entities liable to pay SUTA?

A. In all states, 501(c)3 nonprofit, government and tribal entities are required to pay for unemployment claims in one of two ways: through unemployment insurance taxes or as a reimbursing (self-insured) employer paying the state only for claims paid out to former employees. Nonprofits are exempt from FUTA.

Q. Are there advantages to opting out of SUTA?

A. The main advantage of opting-out is cost savings. While savings numbers vary, most organization can save between 30-50% a year. Take a look at this REAL savings example from one of our members. 

Q. What are the risks associated with becoming a reimbursing employer?

A. Reimbursing provides no insurance against excessive unemployment claims, creating unprotected liabilities and the cost of reimbursing the state for large UI claims can place an organization’s programs at risk for cutbacks and lead to more unemployment.

Q. Are there options to reduce the risk associated with self-insurance and still save money?

A. The two safest options for nonprofits are enrollment in First Nonprofit’s unemployment programs. The First Nonprofit Unemployment Savings Program grants membership to a limited-liability corporation that provides access to professional claims management services and stop-loss insurance. The Bonded Service Program provides first-dollar coverage plus the same excellent professional claims management services.

Q. How much can my organization save with First Nonprofit Group’s programs?

A. Click here to request a savings evaluation for your organization. The analysis is free and there is no obligation to join!

2018 Unemployment Cost Facts for New Hampshire

New Hampshire 2018
What do state unemployment tax (SUTA) costs, claims costs and wage base amounts mean to your organization?

These factors could mean less money for your cause.

$123 Average State Unemployment Tax (SUTA) Cost per Employee

Employers in New Hampshire paid an average of $123 per employee in state unemployment insurance taxes in 2017.

savings snipUnemployment Claim Stats

$11,102 in Total Maximum Benefits: A claimant can collect up to a maximum of $11,102 on a single claim in New Hampshire.

$4.8 Million in Unemployment Claim Over payments: New Hampshire’s fiscal year 2017 unemployment claim over payment rate was 9.923%, equaling over $4.8 million.

$315 Recommended Average SUTA Cost per Employee

According to the U.S. Department of Labor, New Hampshire Employment Security is financing unemployment at 61% less than their minimum adequate financing rate. In order to meet adequate financing, Employment Security will have to increase average SUTA costs per employee from $123 to $315.

First Nonprofit Group provides state compliant, individually insured, cost-saving options to satisfy SUTA requirements for nonprofit, governmental and tribal entities. Click here or call (312) 239-8385 to request a free, no-obligation cost savings evaluation. Evaluations include a 2019 rate projection!

2018 Unemployment Cost Facts for Maine

Maine 2018

What do state unemployment tax (SUTA) costs, claims costs and wage base amounts mean to your organization?

These factors could mean less money for your cause.

$217 Average State Unemployment Tax (SUTA) Cost per Employee

Employers in Maine paid an average of $217 per employee in state unemployment insurance taxes in 2017.

Unemployment Claim Statssavings snip

$10, 868 in Total Maximum Benefits: A claimant can collect up to a maximum of $10,868 on a single claim in Maine.

$10.6 Million in Unemployment Claim Over payments: Maine’s fiscal year 2017 unemployment claim over payment rate was 10.873%, equaling over $10.6 million.

SUTA VS Benefits Paid: $1.29 for every $1.00

Maine employers paid $1.29 in SUTA to the Department of Labor for every $1.00 paid in unemployment benefits in fiscal year 2017.

First Nonprofit Group provides state compliant, individually insured, cost-saving options to satisfy SUTA requirements for nonprofit,  governmental and tribal entities. Click here or call (312) 239-8385 to request a free, no-obligation cost savings evaluation. Evaluations include a 2019 rate projection!

Unemployment Insurance News: President Trump’s FY 2019 Budget

White HousePresident Trump’s proposed FY 2019 Budget would mandate unemployment insurance tax/solvency increases for states with inadequate funding in their UI (unemployment insurance) Trust Funds and potentially create a national paid parental leave program through the UI system:

As of September 30, 2017, only 24 States had sufficient reserves to weather another recession. The Budget would impose higher UI taxes on employers doing business in states with lower unemployment reserve balances to assure enough funds are available to cover unemployment benefit charges. The total proposed tax/solvency increases are projected to generate an additional $22 billion over the next ten year period.

The Budget also proposes the creation of individual state plans for six weeks of paid family leave to new mothers and fathers, including adoptive parents. Using the state’s UI system as a base, the plans would allow States to establish paid parental leave programs that best meets the needs of their workforce and economy. These programs are estimated to cost approximately $19 billion over 10 years and would be offset by increases in UI taxes/solvency provisions ($11 billion), improved integrity ($1.8 Billion) and RES/REA (Reemployment Services and Reemployment and Eligibility Assessment) services ($3.3 Billion), according to the proposed Budget.

Linda Kirk

Linda Kirk

It is with great sadness and a heavy heart that we inform you of the passing of our dear friend and longtime colleague of nearly 20 years, Linda Kirk.

Linda passed away suddenly on January 5, 2018. She was loved by many who worked closely with her. She cherished her work and was invested in our clients, partners, and in the services we provide to nonprofits. We were fortunate enough to work alongside her for so many years and going forward we will honor her memory by continuing her legacy of excellence, dedication and patience all with a smiling spirit!

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