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.
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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.
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!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.