Unemployment insurance cost facts every Colorado nonprofit should know
What do state unemployment taxes (SUTA), state unemployment reserve balances and claims overpayment rates mean to your nonprofit?
These factors could mean less money for your nonprofit organization’s cause.
76% Increased Tax Cost
From 2010 to 2012, the Colorado Department of Labor and Employment borrowed money from the federal government in order to pay the excess unemployment claims the state’s trust fund could not cover. In order to replenish the fund, factors used in calculating unemployment tax rates were increased, therefore increasing the average tax cost per employee from $159 in 2009 to $280 in 2015.
76 Million Unemployment Claim Overpayments
The Colorado April 2014-March 2015 unemployment claim overpayment rate was 15.336%, equaling over %76 million in overpayments.
$12,200 2016 Wage Base Increase
The wage base is the maximum amount on which an employer must pay unemployment taxes on for each employee. Colorado increased its unemployment wage base from $11,800 to $12,200 in 2016.
There are options to financing your nonprofit organizations unemployment costs
First Nonprofit Group provides more than 1,800 nonprofit organizations and governmental entities around the country with unemployment insurance at affordable rates. Click here or call 1-(800) 526-4352 to request a free, no-obligation cost savings evaluation. Evaluations include a 2017 rate projection!