May 3, 2022



The roller coaster economy that started with the mandated economic shut-downs due to the pandemic has been slow to recover despite significant new federal spending. The availability of funds through the CARES and ARP Acts has enabled states to restore some of the lost revenue to state UI trust fund accounts. Yet, many states have not fully taken advantage of the availability of these funds for this purpose and have not addressed measures that would significantly improve solvency. The result is that many state UI trust funds will remain insolvent or at risk of becoming insolvent with an economic downturn. The risk of recession has increased with the dramatic increase in general inflation rates, supply chain issues, and the impact of increasing gas prices.

The U.S. Department of Labor recently released the 2022 UI solvency report showing the status of state UI trust fund accounts and the relative solvency of each. According to the report, as of January 1, 2022, 10 states had an outstanding Title XII advance balance, totaling $39.9 billion. As of April 18th the number of states with outstanding advances had not changed very much. Nine states and the Virgin Islands still have outstanding advances to be repaid: California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, New Jersey, New York, Pennsylvania, and the Virgin Islands

Additional states with UI trust funds that are particularly at risk of becoming insolvent in the event of another economic downturn include: District of Columbia, Florida, Georgia, Hawaii, Indiana, Kentucky, Louisiana, Michigan, Missouri, Nevada, Ohio, Oklahoma, Rhode Island, Texas, and Washington

Employers are already seeing increases in state UI contribution rates to be paid in 2022 due to claims experience in 2020 and 2021 and reduced state UI trust fund solvency. We expect additional increases on average for 2023 on top of FUTA tax increases for employers with business in states with continued outstanding loans for 2022 and 2023. We are working with business representatives and states to avoid large spikes in contribution rates and FUTA tax increases and the development of long-term solvency measures. An economic downturn at the end of 2022 or in 2023 would result in further UI related state and federal taxes and increase the risk that more state UI trust funds would become insolvent.



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CCSCT was approached by First NonProfit to discuss its Unemployment Savings Program and ways the program could significantly reduce the amount of unemployment taxes we were paying. At the time, our agency was paying approximately $80,000 per year. First NonProfit conducted an analysis to determine if making the switch would be in our best interest, and it clearly was based on our circumstances. The first year on the program, CCSCT saw a 70% reduction in its unemployment costs and each year, continues to experience further reductions as a result of having minimal claims. Some additional benefits of the program including having a fixed annual cost, an interest-baring reserve account, professional unemployment claims management and representation at all unemployment hearings. This has been one of the best decisions we have made.

Community Council of South Central Texas, Inc., Seguin, TX

We first started using First Nonprofit’s Unemployment Savings Program when we were a small startup nonprofit.  We didn’t have an HR department and needed expertise in the event that an unemployment claim was made.  We knew we were eligible to be a reimbursing employer, but weren’t sure how to navigate that process.  They made it easy to set things up, plan for, and then manage claims when they came at a very reasonable cost. The amount of time and stress they’ve saved us dealing with all this has been worth way more than the cost.  We’ve now grown to a large nonprofit and do have an HR department but have no plans to stop using their services.  I highly recommend them to every nonprofit I come into contact with!


Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Prevent Blindness America, Chicago, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools, Chicago, IL

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.

Thresholds, Chicago, IL

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

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.

Visually Impaired Preschool Services, Louisville, KY

Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ