Non-Profit Trust Unemployment Insurance


Benefits of this Program
In 1972 the Federal Unemployment Tax Act was amended, giving 501(c)3 non-profit organizations the ability to opt out of State Unemployment Tax programs and instead reimburse State Unemployment programs for their actual paid unemployment benefits.

The Nonprofit Trust is a member-owned Unemployment Insurance Administrator serving 501(c)3 non-profits. Joining The Nonprofit Trust and electing to be a self-payer of your unemployment claims is almost always less costly than paying standard unemployment taxes, freeing up valuable funds for the organization’s programs and services. In many cases, the savings can be 30 - 40 percent. Organizations with a payroll of at least $1,000,000 are the best fit for this program.

Key Benefits:

Pay only for claims your organization generates
  • State unemployment departments charge non-profits the same rates that every other employer pays, even though the claims non-profits generate tend to be much lower than average
  • By opting out of State Unemployment Tax programs and choosing the reimbursement option, non-profits can pay only for the claims they generate, saving an average of 30 - 40 percent each year
Control Unemployment Costs
The Nonprofit Trust helps you dramatically reduce costs and administrative overhead
  • Sets up a reserve account that belongs to you, not the state
  • Deposits funds into an interest-bearing reserve account, which you own and control, instead of your state unemployment fund
  • The state sends The Nonprofit Trust quarterly invoices for actual claims, which are then paid out of your account
  • Human Resource Hotline - assists members with a wide variety of HR issues and is not limited to unemployment questions. There is no limit on how often you can call
  • The Nonprofit Trust offers cost-containment services for all members with on-site training available
Fewer Demands on Your Staff
The Nonprofit Trust
  • Responds to every unemployment claim against your organization
  • Audits claims to correct State Unemployment Tax program mistakes and overpayments
  • Represents you at all disputed claims hearings

Submission Requirements:

  • Completed application
  • 3-5 years of currently valued loss runs if available
  • Target Premium

The Nonprofit Trust manages the entire process so you can concentrate on fulfilling your organization’s mission.