What Are State Nonprofit Associations Saying About COVID-19 Unemployment Claims Charge Relief?

April 6, 2020

What Are State Nonprofit Associations Saying About COVID-19 Unemployment Claims Charge Relief?

 

Today, the Alliance sent [a] letter to Governor Ducey outlining our concern about increased unemployment concerns relating to nonprofits, asking him to hold 100% harmless these organizations and to expand unemployment benefits to all nonprofit employees as we work to mitigate tremendous losses while continuing to provide critical services to our community.

 

 

These organizations are providing direct services in response to the COVID-19 pandemic and will need additional relief from the significant financial burden caused by unemployment claims in order to provide some continuity of service.

 

 

The…state needs to take two additional steps…: 1. Ensure that…the General Statutes allow the state of North Carolina to receive the federal funds to cover half of the costs of COVID-19 related UI claims for self-insured nonprofits and to apply these funds toward the reimbursements that these nonprofits would ordinarily owe for these claims; and 2. Provide forgiveness from North Carolina’s UI Trust Fund for the other half of the amounts that these self-insured nonprofits would typically need to reimburse the state for COVID-19 related UI claims.…To the extent that the General Assembly makes temporary changes to unemployment insurance (UI) benefits, it is important to fully hold harmless nonprofits have the option of self-insuring and reimbursing the state for UI claims…rather than paying SUTA based on experience rating.

 

 

We are in a situation unlike any we have known and many critical nonprofit and public agencies that self-insure these benefits will go under if they do not receive help to offset dollars owed by nonprofits or direct reimbursement to nonprofits for the employer piece of self-insured unemployment benefits.

 

 

As you may be aware, the stimulus package protects the unemployment experience rating and related financial risks in SUI by providing 100% benefit reimbursement for claims due to the COVID-19 pandemic; however, self-insured nonprofits are to be reimbursed for only half (50%) of the costs incurred. It is now up to the State of New York to immediately act, as other states have done (Michigan, Kentucky, and Montana, for example), to protect and hold harmless self-insured charitable organizations.

We urge you to issue an Executive Order to provide a temporary waiver of the requirement that all unemployment claims related to the COVID-19 crisis be charged to an individual employer’s unemployment account and thus, subject to 50% reimbursement by self-insured charities. In doing so, the State of New York will be ensuring that there will be no discrimination among employers in this regard and that the financial viability and sustainability of these charities will be strengthen, rather than further weakened..

 

 

We urge you to issue an Executive Order to provide a temporary waiver of the requirement that all unemployment claims related to the COVID-19 crisis be charged to an individual employer’s unemployment account and thus, subject to 50% reimbursement by self-insured charities. In doing so, the State of Ohio will be ensuring that there will be no discrimination among employers in this regard and that the financial viability and sustainability of these charities will be strengthen, rather than further weakened, and many of those jobs serving our community lost for good.

 

Many states are taking steps to protect businesses and nonprofits that pay SUTA from taking a financial hit from Coronavirus-related layoffs by enacting laws that prevent UI claims related to COVID-19 from affecting their experience ratings. However, these laws do not hold harmless nonprofits that self-insure for UI benefits, since freezing state unemployment tax rates does nothing to relieve these organizations of the need to reimburse their states for the full amount of the UI benefits that their employees receive when they are out of work due to COVID-19. To prevent further economic harm to these already struggling, state legislators (or Governors taking executive action on UI) must temporarily waive requirements that self-insured nonprofits repay state UI trust funds for claims arising for Coronavirus-related reasons. Congress can help encourage states to provide this protection for nonprofits by offering federal funding to state unemployment trust funds to offset the potential cost of holding self-insuring organizations harmless for UI claims arising due to COVID-19.

 

 

 

 

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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

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. We are impressed with the accuracy of their employment decisions, integrity of their employees and efficiency of their claim handling. We greatly respect and value the consistent, impressive cost savings from the utilization of their outstanding services.

 

Thresholds, Chicago, 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