April 6, 2020
Today, the Alliance sent [a] letter to Governor Ducey outlining our concern about increased unemployment concerns relating to nonprofits, asking him to hold 100% harmless these organizations and to expand unemployment benefits to all nonprofit employees as we work to mitigate tremendous losses while continuing to provide critical services to our community.
These organizations are providing direct services in response to the COVID-19 pandemic and will need additional relief from the significant financial burden caused by unemployment claims in order to provide some continuity of service.
The…state needs to take two additional steps…: 1. Ensure that…the General Statutes allow the state of North Carolina to receive the federal funds to cover half of the costs of COVID-19 related UI claims for self-insured nonprofits and to apply these funds toward the reimbursements that these nonprofits would ordinarily owe for these claims; and 2. Provide forgiveness from North Carolina’s UI Trust Fund for the other half of the amounts that these self-insured nonprofits would typically need to reimburse the state for COVID-19 related UI claims.…To the extent that the General Assembly makes temporary changes to unemployment insurance (UI) benefits, it is important to fully hold harmless nonprofits have the option of self-insuring and reimbursing the state for UI claims…rather than paying SUTA based on experience rating.
We are in a situation unlike any we have known and many critical nonprofit and public agencies that self-insure these benefits will go under if they do not receive help to offset dollars owed by nonprofits or direct reimbursement to nonprofits for the employer piece of self-insured unemployment benefits.
As you may be aware, the stimulus package protects the unemployment experience rating and related financial risks in SUI by providing 100% benefit reimbursement for claims due to the COVID-19 pandemic; however, self-insured nonprofits are to be reimbursed for only half (50%) of the costs incurred. It is now up to the State of New York to immediately act, as other states have done (Michigan, Kentucky, and Montana, for example), to protect and hold harmless self-insured charitable organizations.
We urge you to issue an Executive Order to provide a temporary waiver of the requirement that all unemployment claims related to the COVID-19 crisis be charged to an individual employer’s unemployment account and thus, subject to 50% reimbursement by self-insured charities. In doing so, the State of New York will be ensuring that there will be no discrimination among employers in this regard and that the financial viability and sustainability of these charities will be strengthen, rather than further weakened..
We urge you to issue an Executive Order to provide a temporary waiver of the requirement that all unemployment claims related to the COVID-19 crisis be charged to an individual employer’s unemployment account and thus, subject to 50% reimbursement by self-insured charities. In doing so, the State of Ohio will be ensuring that there will be no discrimination among employers in this regard and that the financial viability and sustainability of these charities will be strengthen, rather than further weakened, and many of those jobs serving our community lost for good.
Many states are taking steps to protect businesses and nonprofits that pay SUTA from taking a financial hit from Coronavirus-related layoffs by enacting laws that prevent UI claims related to COVID-19 from affecting their experience ratings. However, these laws do not hold harmless nonprofits that self-insure for UI benefits, since freezing state unemployment tax rates does nothing to relieve these organizations of the need to reimburse their states for the full amount of the UI benefits that their employees receive when they are out of work due to COVID-19. To prevent further economic harm to these already struggling, state legislators (or Governors taking executive action on UI) must temporarily waive requirements that self-insured nonprofits repay state UI trust funds for claims arising for Coronavirus-related reasons. Congress can help encourage states to provide this protection for nonprofits by offering federal funding to state unemployment trust funds to offset the potential cost of holding self-insuring organizations harmless for UI claims arising due to COVID-19.
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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!