Nonprofit, tribal and governmental entities are required to pay for unemployment claims in one of two ways: State Unemployment Insurance (SUI) Tax or Reimbursement Financing (self-insurance).
The COVID-19 pandemic has resulted in the filing of more than 55 million SUI claims across the country. As nonprofits begin to re-open, organizations should evaluate the impact of these claims to their 2021 budget and beyond.
Colony West offers different unemployment insurance programs that let you redirect unnecessary unemployment costs back into your mission.
As non-profit specialists, our programs are specifically tailored to save your organization money by minimizing the risk associated with being a self-insured employer, providing a fixed annual cost and removing the uncertainty of your exposure.
Soaring unemployment rates triggered increases in unemployment claim duration across the country. State unemployment agencies dramatically increased SUI taxes to pay back loans and interest to the Federal government during and after the Great Recession of 2008. The average SUI tax cost per employee was $260 in 2007. By 2012, the average had increased to $473 per employee. This time will be no different. It’s safe to expect SUI taxes to increase significantly over the next several years as the economy slowly recovers.
Consider altering the method by which you fulfill that unemployment responsibility to one that also allows greater financial control. Colony West’s unemployment insurance program could save you up to 40% annually.
If your organization currently self insures (reimburses) state unemployment insurance (SUI) costs, you could be exposing much needed dollars to:
• Unlimited liability
As a self-insured employer your organization is responsible to pay back your state unemployment agency for 100% of unemployment claims paid out to your former employees.
• Claim overpayments
Employers can anticipate longer duration to process claims, issue decisions and schedule hearings. The biggest concern is the potential increase in claim overpayments.
• Unknown costs
Your monthly or quarterly payments will vary greatly from one bill to the next, making budgeting a difficult task for this cost.
The application process is simple:
To find out how much money you can save,
request a free savings quote today!