What do state unemployment taxes (SUTA), state unemployment reserve balances and claims overpayment rates mean to your nonprofit?
These factors could mean less money for your nonprofit organization’s cause.
$2 Billion Negative State Trust Fund Balance
In April 2011, the New Jersey Department of Labor and Workforce Development owed more than $2 billion to federal government. This loan was used to pay the excess unemployment claims the state trust fund could not cover.
49% 2009-2015 Increased Tax Cost
In order to replenish the trust fund, the Department of Labor and Workforce Development increased factors used in calculating state unemployment tax (SUTA) rates over recent years, therefore increasing the average unemployment tax cost per employee from $596 in 2009 to about $890 in 2015.
$279 Million Unemployment Claim Overpayments
The New Jersey April 2014-March 2015 unemployment claim overpayment rate was 12.822%, equaling over $279 million in payments.
There are options to financing your nonprofit organizations 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!
