What Every 501c3 Nonprofit, Government
and Tribal Entity Should Know About SUTA
Employers paying the State Unemployment Tax (SUTA) often overpay their state unemployment agencies for this mandatory insurance cost. These tax funds go to the state’s unemployment compensation pool to pay benefits on all statewide employees. Any balance remaining in an employer’s SUTA account is non-refundable and owned by the State.
The federal government has given 501c3 nonprofit, government and tribal entities an alternative to paying the high cost of SUTA: Reimbursement financing. This option allows these organizations to pay dollar-for-dollar for only the unemployment claims issued to your former employees and redirect those tax dollars saved back into their missions.
However, reimbursement financing does subject organizations to potential risks including an unexpected loss of funding that could lead to layoffs. Reimbursable employers are expected to pay back their state agency for all unemployment claims on a monthly or quarterly basis, depending on the state.
First Nonprofit has designed programs that allow 501c3 nonprofit, government and tribal entities to take advantage of the savings that comes with reimbursement financing while minimizing risk.
First Nonprofit’s Unemployment Insurance Solutions:
One size does not fit all.
Learn more about our different coverage options and find the solution that’s the right fit for your organization:
Risk‐free, first and last dollar coverage.
Proprietary, interest‐bearing reserve account with stop loss insurance.
As an alternative to our Bonded Service Program, this “working excess” coverage allows you to determine what level of risk retention is most efficient for you.
We offer bonds in all states that require collateral to maintain reimbursing status.