Yesterday, I received an email from Woody Clark, a trust representative from 501(c) Agencies Trust. He has written a short paper on how nonprofits can reduce their unemployment insurance costs, and thought the nonprofit community should know about it. Saving money…who wouldn’t want to do that?
It’s a quick read, so I’ll type no more:
In your State, as in all States, a Nonprofit has two options for Unemployment Insurance while a For Profit Corporation only has one. Typically, a Nonprofit and For Profit pay for unemployment claims through State Unemployment Insurance tax (SUI). But unlike their counterparts, Nonprofits have an alternative choice – to become a reimbursing employer. This means that it can pay the state only for claims paid out to former employees.