February 26, 2014
When it comes to managing costs at nonprofits, taxes can be a curveball. While nonprofits are exempt from many taxes, they must meet the obligation to state unemployment insurance. All employers pay into state unemployment pools and even organizations with no actual UI claims have yearly costs associated with the unemployment tax.
Unlike other employers, nonprofits do have the opportunity to opt out of the fund and become self-reimbursing employers. After making this decision, nonprofits can enroll in a Unemployment Savings Program or a Bonded Service Program with First Nonprofit. The programs provide benefits to a number of nonprofits.
The most significant advantage of opting out of SUI tax pools is the immediate cost savings. New members with First Nonprofit saved an average of $24,780 dollars in their first year, from 2010 to 2014. That’s an average reduction of 30 percent. Other nonprofits have saved even more.
First Nonprofit helps every step of the way
While nonprofits can become self-reimbursing employers on their own, they open themselves up to potential financial risks if unemployment at their organization suddenly spikes. The programs provided by First Nonprofit can shield organizations from these risks and provide other benefits.
With First Nonprofit’s solutions, organizations will receive assistance in the process of opting out and selecting the program that offers the most cost savings. Organizations that pay into the savings program will have an asset that they can carry on their books and one that will be returned to them should they ever decide to discontinue their membership. The ability to pay into the program in equal payments made each quarter can help a nonprofit with its budget as well.
For information on how your organization can cost-effectively meet its unemployment insurance needs, contact First Nonprofit Companies at FNCUI@firstnonprofit.com or visit www.firstnonprofitgroup.com.
Ready to chat? Get in touch today to request a no-obligation savings evaluation.
We first started using First Nonprofit’s Unemployment Savings Program when we were a small startup nonprofit. We didn’t have an HR department and needed expertise in the event that an unemployment claim was made. We knew we were eligible to be a reimbursing employer, but weren’t sure how to navigate that process. They made it easy to set things up, plan for, and then manage claims when they came at a very reasonable cost. The amount of time and stress they’ve saved us dealing with all this has been worth way more than the cost. We’ve now grown to a large nonprofit and do have an HR department but have no plans to stop using their services. I highly recommend them to every nonprofit I come into contact with!
Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.
Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.
It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.
NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.
Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.
Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.