In every
state 501(c)(3) organizations are required to pay for
unemployment claims. These claims are payable either through
the state unemployment insurance tax (SUI) or by
reimbursing the state for claims only paid out to former
employees.
The
Federal Unemployment Tax Act (FUTA), with state unemployment
systems, provides for payments of unemployment compensation
to workers who have lost their jobs. Section 3309 of the
Federal Unemployment Tax Act enables 501(c)(3) organizations
to opt out of the tax system and reimburse the state only
for unemployment claims the state has paid out to the
nonprofits' former employees.
There are
both pros and cons for reimbursing the state. Regardless you
should take the time to weight all your options to "opting
out" if might be right for you.
The following is a list of companies you may wish to contact
to discussion your options:
First Nonprofit Insurance Company
111 North Canal Street, Suite 801
Chicago, Illinois 60606
Phoe: 1-800-526-4352 Fax: 312-930-0375
http://www.firstnonprofit.com
PeopleSystems
241 West Fayette Street
Syracuse, NY 13202
Phone: 1-800-234-4632 Fax: 315-471-2872
http://www.peoplesystems.com/
Unemployment Services Trust (UST)
1155 Eugenia Place
Carpinteria, CA 93013-2062
Phone: 1-800- 249-4788 Ext.5 Fax: 1-805-556-4921
http://www.chooseust.org
