Unemployment insurance cost facts every New Jersy nonprofit should know

March 24, 2016

Unemployment insurance cost facts every New Jersy nonprofit should know

What do state unemployment taxes (SUTA), state unemployment reserve balances and claims overpayment rates mean to your nonprofit?

These factors could mean less money for your nonprofit organization’s cause.

$2 Billion Negative State Trust Fund Balance

In April 2011, the New Jersey Department of Labor and Workforce Development owed more than $2 billion to federal government. This loan was used to pay the excess unemployment claims the state trust fund could not cover.

49% 2009-2015 Increased Tax Cost

In order to replenish the trust fund, the Department of Labor and Workforce Development increased factors used in calculating state unemployment tax (SUTA) rates over recent years, therefore increasing the average unemployment tax cost per employee from $596 in 2009 to about $890 in 2015.

$279 Million Unemployment Claim Overpayments

The New Jersey April 2014-March 2015 unemployment claim overpayment rate was 12.822%, equaling over $279 million in payments.

There are options to financing your nonprofit organizations unemployment costs

First Nonprofit Group provides more than 1,800 nonprofit organizations and governmental entities around the country with unemployment insurance at affordable rates. Click here or call 1-(800) 526-4352 to request a free, no-obligation cost savings evaluation. Evaluations include a 2017 rate projection!

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Testimonials

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.

New York Council of Nonprofits, Albany, NY

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.

Kankakee County Housing Authority, Kankakee, IL

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.

Illinois Network of Charter Schools

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.

Hugh Parry, Retired President of Prevent Blindness America