March 16, 2018
Unemployment Insurance can be difficult to navigate for nonprofits and determining your best options can be an overwhelming process. Here are a few common frequently asked unemployment insurance questions…answered.
A. The State Unemployment Tax Act, Better known as SUTA, is a form of payroll tax used to pay unemployment benefits for employees who lost jobs through no fault of their own. SUTA is a counterpart to FUTA, the federal unemployment insurance program.
A. In most states, employers are solely responsible for paying state unemployment insurance taxes to fund their state’s unemployment insurance system.
A. In all states, 501(c)3 nonprofit, government and tribal entities are required to pay for unemployment claims in one of two ways: through unemployment insurance taxes or as a reimbursing (self-insured) employer paying the state only for claims paid out to former employees. Nonprofits are exempt from FUTA.
A. The main advantage of opting-out is cost savings. While savings numbers vary, most organization can save between 30-50% a year. Take a look at this REAL savings example from one of our members.
A. Reimbursing provides no insurance against excessive unemployment claims, creating unprotected liabilities and the cost of reimbursing the state for large UI claims can place an organization’s programs at risk for cutbacks and lead to more unemployment.
A. The two safest options for nonprofits are enrollment in First Nonprofit’s unemployment programs. The First Nonprofit Unemployment Savings Program grants membership to a limited-liability corporation that provides access to professional claims management services and stop-loss insurance. The Bonded Service Program provides first-dollar coverage plus the same excellent professional claims management services.
A. Click here to request a savings evaluation for your organization. The analysis is free and there is no obligation to join!
First Nonprofit has saved us so much money over the state’s program. We had one little glitch with the state recently and we contacted FNP immediately. FNP staff called us back immediately and moved to remedy the problem.
First Nonprofit has been a great partner. They have helped us saved hundreds of thousands of dollars! They have awesome resources for our nonprofit organization. Thanks for the partnership.
Life is certainly busy these days but having business partners like First Nonprofit has made some of the process hassle free. We have worked with this team for years. When we changed payroll systems, they outlined every step. I think this team is terrific and I know they get the job done! Thank you, Cruz, to all the team at FNP.
FNP has helped our agency to save thousands of dollars every year on our unemployment coverage. The service is phenomenal, and we are thankful to their team as our partner. My experience working with Marshall on the advocacy around UE for nonprofits was also a highlight as someone who teaches advocacy and lobbying for nonprofits. Really, your whole team is top shelf, so 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.
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.
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.
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!