August 26, 2014
Many nonprofit organizations in Pennsylvania have had to contend with increased unemployment and the associated increased costs in the wake of the Great Recession. With economic recovery happening at a slow, but steady pace, charitable groups should consider the available alternatives to paying the state unemployment tax (SUTA). By declaring themselves a reimbursing employer and selecting an effective savings or insurance program, nonprofits in the Keystone State can have more control over the money used to pay out jobless claims. Instead of simply losing the money to the state unemployment fund, organizations can keep more of their hard-earned revenue.
Because of recent changes to the unemployment benefit structure in the state, as well as to tax rates and related calculations, it's important to understand how financial obligations for nonprofits related to SUTA will play out. One particularly significant statistic is the growing cost of per-employee coverage under the state collection formula, which has gone up approximately 65 percent since 2009. This translates to an increase of nearly $200 per staff member, which is simply lost to taxes if a nonprofit has a low level of unemployment claims during a given time period. The growing cost of paying into the state's unemployment fund means nonprofits need to consider other options.
Excess Loss Insurance, Unemployment Savings Programs and more
On average, nonprofits pay more into SUTA funds than what is paid out for jobless benefits. To combat the loss of money that's extremely valuable to nonprofits in terms of both operating budget and the continuation of programs, organizational leaders should take advantage of a valuable – and free – educational webinar that's being offered exclusively to charitable groups in Pennsylvania on September 12 from 10 to 11 a.m. First Nonprofit Group has partnered with the Pennsylvania Association of Nonprofit Organizations to present state-specific information about the current unemployment landscape, as well as safe, money-saving alternatives to paying SUTA. Organizations that have already elected to directly reimburse jobless claims from former employees can also benefit from attending the session
Signing up for the event, which can be attended from the comfort of one's own office, is simple. The web form for registration is available by following this link and call-in registration is available by dialing 800-526-4352. For just one hour of time, nonprofits can learn how to save a significant amount of money – often thousands of dollars – per year.
Content presented by First Nonprofit Group, the leading provider of state unemployment insurance solutions for 501(c)(3) nonprofit employers.
Working with Marshal Whittey at First Nonprofit has been a great experience. He handles our request as a priority and goes above and beyond to resolve any issues we have in a timely manner. Marshall follows through to the end and ensures our needs are met. He has been a great resource for LSC and our “go to” for any tax questions we may have. With LSC transitioning several facilities into one federal tax identification number, First Nonprofit was able to assist and provide guidance with best practices resolving claims to each entity. Additionally First Nonprofit provided knowledge (information materials) and one on one training to HRS group with best practices to handle claims state adjudicated, fraudulent claims, and appeals. And processing information in the First Nonprofit [unemployment claims] system allows for timely information can be collected.
My experience with FNP has been wonderful. Unemployment in general is quite confusing and FNP has simplified the process for us. Everyone we have reached out to or worked with has been very helpful and follows up to be sure we understand the information. I am so happy we made the switch to FNP!
First Nonprofit smoothed the unemployment perils for our organization during Covid. Without the ability to cap our UI exposure, we would not have been able to weather the storm. The program worked perfectly and we have come out of the pandemic ready to forge on. Thanks FNP!
My experience with the FNP has been fantastic. The idea of setting funds aside for the unemployment tax liability is a bedrock for nonprofit organizations like mine, namely ASHBA; what is even more advantageous is having the FNP as a custodian of those funds. 100% recommended!
I would like to comment on my experience with FNP….to date our District has saved $1,000’s of dollars by being enrolled in the First Nonprofit program. My only regret is that we did not know about this method of paying unemployment tax years ago….as I had figured about five years
ago, had we enrolled 15-20 years ago, we could have saved our small school district upwards of $500,000 in payments to IDES. Also we would have had a pretty hefty sum of money in our Reserve Account. Thankfully I attended a workshop hosted by First Nonprofit back in 2015 which got the ball rolling!
I have worked with the First Non-Profit Team for many years, and I appreciate the quick response and care that Cecilia and the team provides anytime I have questions. While there are other providers that may provide like services, First Nonprofit will always be my first choice! I appreciate you!
First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.
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!