These factors could mean less money for your nonprofit organization’s cause
6.3 Billion Negative Unemployment State Trust Fund Balance
The California Employment Development Department owes more than $6.3 billion to the federal government. This loan is used to pay the excess unemployment claims the State Trust Fund cannot cover
$427 Million Unemployment Claim Overpayments
The California Apr’14-Mar’15 unemployment claim overpayment rate was 7.445%, equaling over $427 million
89% Cost Increase Needed To Meet Solvency Standards
Employers across the country have seen unemployment tax rates increase as their state unemployment agencies strive to meet the US Department of Labor’s Trust Fund solvency standards. In order to meet these standards, California’s average cost per employee will have to increase by 89%, from $357 (in 2015) to $674.
There are options to financing your nonprofit organization’s unemployment costs
First Nonprofit Group provides more than 1,800 nonprofit organizations and governmental entities around the country with unemployment insurance at affordable rates. Click here or call 1-800-526-4352 to request a free, no-obligation cost savings evaluation. Evaluations include a 2017 rate projection!
