What do high unemployment rates, increased taxes and negative State Trust Fund Balances mean to your nonprofit? All these statistics mean less money for your cause.
NEGATIVE STATE TRUST FUND BALANCE OF $154 MILLION
The North Carolina Division of Employment Security owes more than $154 Million to the federal government (more than $2.7 billion was owed in 2011). This loan is used to pay the excess unemployment claims the State Trust Fund cannot cover.
2009-2014 INCREASED TAX COST: 43% INCREASE
In order to replenish the North Carolina State Trust Fund, factors used in calculating employer unemployment tax rates were increased, therefore increasing the average unemployment tax cost per employee by 43% from 2009 to 2014.
CONTINUED COST INCREASES: 20% SURCHARGE
In 2014, North Carolina’s minimum and maximum employer unemployment tax rates increased. These increases included a 20% surcharge on all unemployment tax rates. The surcharge will continue to be added to all unemployment tax rates until the State Trust Fund reaches $1 Billion.
The unemployment wage base also increased by $300 per employee in 2015.
First Nonprofit Group provides more than 1,700 nonprofits around the country with unemployment insurance at affordable rates. Below is a sample savings analysis of one North Carolina member since 2005.
To find out how much money your organization can save, contact us for an unemployment cost savings evaluation. Evaluations are free, there is no obligation to join, and an estimate of your 2016 unemployment rate is included!
For a PDF version of this fact sheet, please click here.
