BREAKING NEWS: Beginning October 6, 2025, the maximum unemployment claim weekly benefit amount (WBA) will increase from $504 to $869 per week—nearly doubling the cost impact of unemployment claims. Additionally, in October 2026, the WBA is expected to increase by another 8.7%, resulting in ongoing increases in nonprofit unemployment liability.
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With these significant changes ahead, nonprofits must act now to review their unemployment financing options. Reimbursing/self-insured nonprofits can expect rising costs as early as Fall 2025, with claims nearly doubling for employees earning approximately $52,500 or more. Nonprofits paying unemployment taxes should prepare for increases in the taxable wage base as the NY unemployment fund adjusts for higher claim payouts: the wage base is scheduled to increase from $12,800 to $13,000 in 2026 and approximately $15,700 in 2027.
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But there’s good news: First Nonprofit (FNP) offers time-tested solutions that help nonprofits, whether they are reimbursing or paying state unemployment taxes:
–Reimbursing nonprofits: Reduce liability and gain protection from unpredictable increases in unemployment benefit costs.
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–Tax-rated nonprofits: Receive an average of a lower cost of 27% per employee than paying the unemployment tax and benefit from a full suite of unemployment cost control services.
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Before October 6, 2025, unemployment benefit amounts range from $104 to $504 per week.
Beginning October 6, 2025, the maximum weekly benefit amount (WBA) for unemployment claims will increase from $504 to $869 per week. Paid out for the full 26 weeks of unemployment available, the maximum payout will be $22,594 at $869 per week.
501(c)(3) nonprofit, governmental, and tribal entities are all exempt from paying Federal Unemployment Taxes (FUTA). However, in New York, most employers are required to pay state unemployment taxes (SUTA), with only religious entities that operate exclusively for religious purposes exempt from New York SUTA. Click here to learn more.
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First Nonprofit has been a great partner. They have helped us saved hundreds of thousands of dollars! They have awesome resources for our nonprofit organization. Thanks for the partnership.
First Nonprofit has saved us so much money over the state’s program. We had one little glitch with the state recently and we contacted FNP immediately. FNP staff called us back immediately and moved to remedy the problem.
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.
I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!
I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years
ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!
My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!
First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!
