March 3, 2016
Illinois is eight months into a state budget impasse that affects nonprofits and educational institutions across the state. The severity of the impact on Illinois’ nonprofit organizations varies but for many, staff layoffs and reduced hours have been part of the plan of cutting costs while the State remains in deadlock.
Senior Services Plus, serving about 3,000 older adults a day, and Centerstone, one of the nation’s largest behavioral healthcare providers, are just two nonprofit organizations that have recently announced major changes to their operations. This past month, Senior Services Plus announced that their bus service was shutting down for the first time in 43 years and their Meals on Wheels program also cut back from five meals a week to four. On March 1st, Cornerstone will close its Big Brother Big Sisters of Southern Illinois locations, impacting youth, volunteers and supporters in five counties.
As employers look for ways to shed costs by cutting payroll, employers should expect an increase in the cost of their unemployment insurance expenses. If an employer is self-insured (directly reimbursing the State for unemployment claims), the impact will be felt as soon as the end of the quarter in which the claim starts. A single unemployment claim can range from $1,326 to $14,794. For those employers paying State Unemployment Taxes (SUTA), the financial impact will come via their 2017 Unemployment Tax Rate. Current rates range from 0.55% – 7.75%, which is equal to a cost per employee range of $71 – $1,004.
This article is presented by First Nonprofit Group, the leading provider of state unemployment tax (SUTA) solutions for 501c3 nonprofit employers and governmental entities. First Nonprofit’s programs help organizations save an average of 30% on their unemployment costs compared to the state unemployment tax. Self-insuring your unemployment costs? First Nonprofit programs minimize the risk associated with being a self-insured employer, provide a fixed annual cost and remove the uncertainty of unemployment claim exposure.
Visit www.firstnonprofitcompanies.com to request a fee, no-obligation cost savings analysis on your organization’s unemployment costs.
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.