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
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.
We were introduced to First Nonprofit through another housing authority. In our analysis and comparison to what we were paying the State, our first year savings was $5,800 plus. We have been with them since the end of 2008 and I am glad we have been. I consider them an arm of our HR department.
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.
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.