April 6, 2020
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.
Ready to chat? Get in touch today to request a no-obligation savings evaluation.
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!