Last chance for nonprofits to potentially save thousands on state unemployment tax in 2017!
All employers are required to pay State Unemployment Insurance (SUI). For-profit employers have only one option, and that is to participate in the State Unemployment Fund. Premiums are collected via the State Unemployment Tax (SUTA). 501c3 nonprofits and governmental employers can either choose to cover via the SUTA, or they can choose to self-insure. With the self-insured option, the employer must reimburse the state for all unemployment benefits paid to its former employees. How do you avoid the high cost of State Unemployment Taxes and the challenges of self-insuring?
Some insurance carriers provide risk management programs for those 501c3 and governmental employers that choose to reimburse the State Unemployment Fund for unemployment claims paid. The program provides a combination of a transfer-of-risk product (first dollar as well as optional attachment points) and loss-control services (claims administration).
The program is:
Available to nonprofit and public organizations in all 50 states
Nearly 2,000 nonprofit organizations currently participate
Endorsed by 33 state and national associations
Average cost is 30% less than SUTA (2016 average savings = $107/employee)
State unemployment agencies’ deadlines to select alternative plans:
November 30: AZ, MI, MT, SC, VA
December 1: AL, AK, AR, CO, CT, DE, DC, FL, GA, HI, ID, IN, IA, KS, KY, LA, ME, MD, MA, NM, MS, MO, NE, NV, NC, ND, OH, PA, RI, SD, TX, UT, VT, WA, WV, WY
December 31: IL, NH, NY, WI
January 31: OK, OR
February 1: NJ
May 31: TN
Any Quarter: CA, MN
Please contact us today for more valuable information on Unemployment Insurance and the advantages for Nonprofits to self-insure!