September 30, 2016
With Fall arriving and the holiday season around the corner, it’s about that time to review your state unemployment tax (SUTA) cost options. SUTA costs have increased for most states since 2009 — by as much as 630%! — and costs continue to grow due to factors such as improper claim payments made by the state. Nonprofits, governmental and tribal entities have the option to opt out of paying SUTA and instead, reimburse their state unemployment benefits paid to employees. The reimbursement financing option gives employers the opportunity to:
[item]Avoid annually varying tax rates which create a statewide reserve against future unemployment risk[/item]
[item]Reduce the actual cost of benefits to dollar-for-dollar[/item]
[item]Avoid having to pay the pooled costs built into each state’s unemployment agency[/item]
Choosing the reimbursement financing method is less costly for nonprofits however it comes with potential risks such as an unexpected loss of funding. At First Nonprofit, we have programs tailored to help nonprofits take advantage of savings while minimizing any potential risk that may arise. The deadline for many states to enroll in reimbursement financing is on November 30th, while for others it’s December 1st.
First Nonprofit Group provides nearly 2,000 nonprofits around the country with unemployment insurance at affordable rates. To find out how much money your organization can save, request an unemployment cost savings evaluation. Evaluations are free, there is no obligation to join, and an estimate of your 2017 unemployment rate is included!
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.