August 26, 2014
Many nonprofit organizations in Pennsylvania have had to contend with increased unemployment and the associated increased costs in the wake of the Great Recession. With economic recovery happening at a slow, but steady pace, charitable groups should consider the available alternatives to paying the state unemployment tax (SUTA). By declaring themselves a reimbursing employer and selecting an effective savings or insurance program, nonprofits in the Keystone State can have more control over the money used to pay out jobless claims. Instead of simply losing the money to the state unemployment fund, organizations can keep more of their hard-earned revenue.
Because of recent changes to the unemployment benefit structure in the state, as well as to tax rates and related calculations, it's important to understand how financial obligations for nonprofits related to SUTA will play out. One particularly significant statistic is the growing cost of per-employee coverage under the state collection formula, which has gone up approximately 65 percent since 2009. This translates to an increase of nearly $200 per staff member, which is simply lost to taxes if a nonprofit has a low level of unemployment claims during a given time period. The growing cost of paying into the state's unemployment fund means nonprofits need to consider other options.
Excess Loss Insurance, Unemployment Savings Programs and more
On average, nonprofits pay more into SUTA funds than what is paid out for jobless benefits. To combat the loss of money that's extremely valuable to nonprofits in terms of both operating budget and the continuation of programs, organizational leaders should take advantage of a valuable – and free – educational webinar that's being offered exclusively to charitable groups in Pennsylvania on September 12 from 10 to 11 a.m. First Nonprofit Group has partnered with the Pennsylvania Association of Nonprofit Organizations to present state-specific information about the current unemployment landscape, as well as safe, money-saving alternatives to paying SUTA. Organizations that have already elected to directly reimburse jobless claims from former employees can also benefit from attending the session
Signing up for the event, which can be attended from the comfort of one's own office, is simple. The web form for registration is available by following this link and call-in registration is available by dialing 800-526-4352. For just one hour of time, nonprofits can learn how to save a significant amount of money – often thousands of dollars – per year.
Content presented by First Nonprofit Group, the leading provider of state unemployment insurance solutions for 501(c)(3) nonprofit employers.
Ready to chat? Get in touch today to request a no-obligation savings evaluation.
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.
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.
Life is certainly busy these days but having business partners like First Nonprofit has made some of the process hassle free. We have worked with this team for years. When we changed payroll systems, they outlined every step. I think this team is terrific and I know they get the job done! Thank you, Cruz, to all the team at FNP.
FNP has helped our agency to save thousands of dollars every year on our unemployment coverage. The service is phenomenal, and we are thankful to their team as our partner. My experience working with Marshall on the advocacy around UE for nonprofits was also a highlight as someone who teaches advocacy and lobbying for nonprofits. Really, your whole team is top shelf, so thank YOU!
Chicago Children’s Theatre has greatly benefited from our partnership with First Nonprofit, and I have always enjoyed working with the staff on our filings and any complicated questions. I would not hesitate to recommend First Nonprofit to fellow nonprofits. We’re very happy customers.
FNP is a great resource for Daniel Kids. To have a TPA that we can count on to take point on not only managing our unemployment claims, but to support and guide any protest hearing, is invaluable. All the professional support staff we have worked with have been excellent, very knowledgeable and responsive. We are grateful for the help and support, thank you.
When I first began in my position at my organization, I hadn’t had experience working with a company like FNP. The staff was so patient and helpful in helping to explain the benefits of First Nonprofit. Anytime I reach out with a question I receive a quick, clear, and thorough response. I’m so thankful that we decided to partner with FNP. Their excellence in customer service, coupled with their variety of packages frees us up to truly serve our staff and community with a peace of mind knowing that our organization is protected against unanticipated unemployment insurance expenses.
First Nonprofit gets an A+ in my book. You are so easy to work with & very knowledgeable! Whether it is my quarterly correspondence with Kim or my random interactions with Dawn about a bond … I am so pleased that I get to work with such a helpful company. Thank you!