October 8, 2015
With Fall arriving and the holiday season around the corner, it’s about that time to review state unemployment insurance options. Recently, many employer’s state unemployment tax cost have increased by as much as 51% and continue to grow due to factors such as improper payments made by the state, increasing benefit awards, and confusion about claimant eligibility by employers.
Nonprofits, governmental entities and Tribal enterprise communities have the choice to opt out of paying the SUTA (State Unemployment Tax Administration) tax and instead, reimburse for state unemployment benefits paid to ex-employees. The reimbursement financing option allows nonprofit employers to:
– Avoid annually varying tax rates which funds the statewide unemployment reserve
– Reduce total annual overall cost of unemployment.
– Circumvent having to pay the pooled risk costs built into each state’s unemployment program
Selecting the reimbursement financing method is typically less costly for nonprofits. However, it comes with potential risks such as an unexpected loss of funding, sudden exposure to other unforeseen risks, or a downturn in the local or national economy. At First Nonprofit, we have programs tailored with total or partially insured solutions that help nonprofits take advantage of savings while minimizing any potential risk that may arise. The qualifying employer deadline to enroll in reimbursement financing for many states is November 30, while for others it’s December 1st.
First Nonprofit Group provides more than 1,700 nonprofits around the country with unemployment insurance options at affordable rates. To find out how much money can be saved, contact us for an unemployment cost savings evaluation. Evaluations are free, there is no obligation to engage and an estimate of a better 2016 unemployment option is included!
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.
We’ve been a member of First Nonprofit’s Unemployment Savings Program since 2011 and highly recommend joining. The program is terrific and allows us to earn interest on our own funds while still meeting the state’s requirements on unemployment payments. In addition, the staff are great and always helpful sorting out any questions we may have. Thank you all!
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.
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.
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.
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.
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.
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.