What do state unemployment taxes (SUTA), state unemployment reserve balances and claim overpayment rates mean to your nonprofit?
These factors could mean less money for your nonprofit organization’s cause.
153% Increased Tax Cost
From 2010 to 2012, the Kansas Department of Labor borrowed money from the Federal Unemployment Account in order to pay excess unemployment claims the state’s trust fund could not cover. In order to replenish the fund, factors used in calculation unemployment rates were increased, therefore increasing the average unemployment tax cost per employee from $110 in 2009 to $278 in 2015.
62 Million in Unemployment Claim Overpayments
The Kansas April 2014-March 2015 unemployment claim overpayment rate was 25.128% (third highest in the country), equaling over 62 million.
$14,000 2016 Wage Base
Kansas’ unemployment wage base increased from $8,000 to $12,000 in 2015, then again to $14,000 in 2016; therefore increasing the wages on which employers pay SUTA on.
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!
