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.
Ready to chat? Get in touch today to request a no-obligation savings evaluation.
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.