March 3, 2016
Illinois is eight months into a state budget impasse that affects nonprofits and educational institutions across the state. The severity of the impact on Illinois’ nonprofit organizations varies but for many, staff layoffs and reduced hours have been part of the plan of cutting costs while the State remains in deadlock.
Senior Services Plus, serving about 3,000 older adults a day, and Centerstone, one of the nation’s largest behavioral healthcare providers, are just two nonprofit organizations that have recently announced major changes to their operations. This past month, Senior Services Plus announced that their bus service was shutting down for the first time in 43 years and their Meals on Wheels program also cut back from five meals a week to four. On March 1st, Cornerstone will close its Big Brother Big Sisters of Southern Illinois locations, impacting youth, volunteers and supporters in five counties.
As employers look for ways to shed costs by cutting payroll, employers should expect an increase in the cost of their unemployment insurance expenses. If an employer is self-insured (directly reimbursing the State for unemployment claims), the impact will be felt as soon as the end of the quarter in which the claim starts. A single unemployment claim can range from $1,326 to $14,794. For those employers paying State Unemployment Taxes (SUTA), the financial impact will come via their 2017 Unemployment Tax Rate. Current rates range from 0.55% – 7.75%, which is equal to a cost per employee range of $71 – $1,004.
This article is presented by First Nonprofit Group, the leading provider of state unemployment tax (SUTA) solutions for 501c3 nonprofit employers and governmental entities. First Nonprofit’s programs help organizations save an average of 30% on their unemployment costs compared to the state unemployment tax. Self-insuring your unemployment costs? First Nonprofit programs minimize the risk associated with being a self-insured employer, provide a fixed annual cost and remove the uncertainty of unemployment claim exposure.
Visit www.firstnonprofitcompanies.com to request a fee, no-obligation cost savings analysis on your organization’s unemployment costs.
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.
The Ensight Skills Center has enjoyed working with First Nonprofit for several years. We are enrolled in their Unemployment Savings Program and although we have not required a lot of intervention, there have been a few times. I know others have dealt with the same problem of unemployment fraud over the last year and in our case, a call to First Nonprofit (they actually answer their phones) cleared up the issue. They also sent us a letter to send to all our employees telling them what they needed to do to prevent this in the future and protect themselves. What a relief! Over the years if I have questions or concerns, they are happy to listen, advise and help if they can. Another BIG advantage of using First Nonprofit is that all the money that is paid into the Unemployment Savings Program lives on my balance sheet as an asset. The money continues to be Ensight’s not the governments. First Nonprofit has certainly given me peace of mind.
In addition to their money-saving purpose on behalf of nonprofit organizations like AHS, First Nonprofit’s Nonprofit Unemployment Fund streamlines the information we need to efficiently manage unemployment claims. Our relationship with NU Fund gave us access to such things as advice on planning for what’s ahead and how to analyze cost scenarios when unexpected events occurred. Both experiences were very helpful.
We have had a great experience with FNP. During Covid, when there was the chance that reimbursable nonprofits would have to pay 50% of the unemployment costs, FNP went to bat for us. We would receive weekly information on the Unemployment claim and how they were working to reduce the costs to reimbursable nonprofits. They have a great service also working with [our claims administrator] to make sure all the paperwork is completed correctly for any unemployment claim.
PORT Health Services has had a great experience with the Unemployment Savings Program offered through First Nonprofit. Throughout the years we have been involved in the program, we have increased our reserve account significantly through this program and find the reporting we receive both timely and useful. We look forward to our continued involvement with this program and our connection with First Nonprofit for many years to come.
Job One was spending a lot of money on unemployment. Our insurance broker, Mark Simcosky, recommended that we switch over to First Nonprofit. We did just that! This switch has been a huge savings for us! This switch saved us over $10,000 in the first year. Their customer service is Superior! Any time we have a question, we get a response very quickly. Any time we send them a report and they have a question; they call rather than just assuming. They were very responsive during COVID, even when they were in crisis mode their selves. They also were always there when we needed during COVID and very helpful! We would 1,000% recommend First Nonprofit to anybody that could benefit from it!
My experience with FNP has always been positive. Every time I have had to contact them, I’m always put in contact with a friendly and knowledgeable person. If something is missing from our account, they reach out to us to request it. It’s nice to work with a company that makes sure our account is current. I would recommend them to any nonprofit looking to reduce their unemployment insurance costs.
We’ve saved tens of thousands of dollars PER YEAR by changing to become a reimbursing employer, freeing funds for much needed capital investment. FNP has been a valued partner in this process, providing assurance that we have stopgap coverage for extraordinary claims and keeping claims response painless and simple. It’s a huge Win/Win!