BREAKING NEWS: Beginning October 6, 2025, the maximum unemployment claim weekly benefit amount (WBA) will increase from $504 to $869 per week—nearly doubling the cost impact of unemployment claims. Additionally, in October 2026, the WBA is expected to increase by another 8.7%, resulting in ongoing increases in nonprofit unemployment liability.
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With these significant changes ahead, nonprofits must act now to review their unemployment financing options. Reimbursing/self-insured nonprofits can expect rising costs as early as Fall 2025, with claims nearly doubling for employees earning approximately $52,500 or more. Nonprofits paying unemployment taxes should prepare for increases in the taxable wage base as the NY unemployment fund adjusts for higher claim payouts: the wage base is scheduled to increase from $12,800 to $13,000 in 2026 and approximately $15,700 in 2027.
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But there’s good news: First Nonprofit (FNP) offers time-tested solutions that help nonprofits, whether they are reimbursing or paying state unemployment taxes:
–Reimbursing nonprofits: Reduce liability and gain protection from unpredictable increases in unemployment benefit costs.
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–Tax-rated nonprofits: Receive an average of a lower cost of 27% per employee than paying the unemployment tax and benefit from a full suite of unemployment cost control services.
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Before October 6, 2025, unemployment benefit amounts range from $104 to $504 per week.
Beginning October 6, 2025, the maximum weekly benefit amount (WBA) for unemployment claims will increase from $504 to $869 per week. Paid out for the full 26 weeks of unemployment available, the maximum payout will be $22,594 at $869 per week.
501(c)(3) nonprofit, governmental, and tribal entities are all exempt from paying Federal Unemployment Taxes (FUTA). However, in New York, most employers are required to pay state unemployment taxes (SUTA), with only religious entities that operate exclusively for religious purposes exempt from New York SUTA. Click here to learn more.
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PORT Health Services has had a great experience with the Unemployment Savings Program offered through First Nonprofit. Throughout the years we have been involved in the program, we have increased our reserve account significantly through this program and find the reporting we receive both timely and useful. We look forward to our continued involvement with this program and our connection with First Nonprofit for many years to come.
Job One was spending a lot of money on unemployment. Our insurance broker, Mark Simcosky, recommended that we switch over to First Nonprofit. We did just that! This switch has been a huge savings for us! This switch saved us over $10,000 in the first year. Their customer service is Superior! Any time we have a question, we get a response very quickly. Any time we send them a report and they have a question; they call rather than just assuming. They were very responsive during COVID, even when they were in crisis mode their selves. They also were always there when we needed during COVID and very helpful! We would 1,000% recommend First Nonprofit to anybody that could benefit from it!
My experience with FNP has always been positive. Every time I have had to contact them, I’m always put in contact with a friendly and knowledgeable person. If something is missing from our account, they reach out to us to request it. It’s nice to work with a company that makes sure our account is current. I would recommend them to any nonprofit looking to reduce their unemployment insurance costs.
We’ve saved tens of thousands of dollars PER YEAR by changing to become a reimbursing employer, freeing funds for much needed capital investment. FNP has been a valued partner in this process, providing assurance that we have stopgap coverage for extraordinary claims and keeping claims response painless and simple. It’s a huge Win/Win!
First Nonprofit gets an A+ in my book. You are so easy to work with & very knowledgeable! Whether it is my quarterly correspondence with Kim or my random interactions with Dawn about a bond … I am so pleased that I get to work with such a helpful company. Thank you!
When I first began in my position at my organization, I hadn’t had experience working with a company like FNP. The staff was so patient and helpful in helping to explain the benefits of First Nonprofit. Anytime I reach out with a question I receive a quick, clear, and thorough response. I’m so thankful that we decided to partner with FNP. Their excellence in customer service, coupled with their variety of packages frees us up to truly serve our staff and community with a peace of mind knowing that our organization is protected against unanticipated unemployment insurance expenses.
FNP is a great resource for Daniel Kids. To have a TPA that we can count on to take point on not only managing our unemployment claims, but to support and guide any protest hearing, is invaluable. All the professional support staff we have worked with have been excellent, very knowledgeable and responsive. We are grateful for the help and support, thank you.
Chicago Children’s Theatre has greatly benefited from our partnership with First Nonprofit, and I have always enjoyed working with the staff on our filings and any complicated questions. I would not hesitate to recommend First Nonprofit to fellow nonprofits. We’re very happy customers.
