This FREE Course is presented Courtesy of 501(c) Services
1 Lessons / 48 minutes / FREE
More than one-third of 501(c)(3) nonprofits reimburse the state or states in which they operate for unemployment benefits. These nonprofits are Reimbursable Employers. The nonprofit executives at these organizations accept a certain level of risk by, essentially, self-insuring their unemployment benefit costs. The reward for self-insuring – as opposed to paying the state(s) unemployment insurance tax – is a substantial reduction in unemployment related costs, as much as 60% in some cases. A single unemployment claim can cost a nonprofit organization around $10,000. Multiplied by ten, and you have a near catastrophic loss depending on the size of the organization. If a reimbursing organization has not set aside the proper reserves required to pay their benefits bill, nor purchased the proper insurance coverage, then they have most likely undermined their mission by failing to account for unforeseen liabilities.
There are real consequences imposed on nonprofits and their boards by states and regulators for failing to properly mange their risk from an unemployment benefits standpoint.
There are some key issues that nonprofits should be aware of to make unemployment reimbursing as drama-free, paperwork-light and cost-effective as possible. We’ll spell those out for you.
Join us for this 50-minute session as our unemployment risk expert shares his insights on how your organization can better manage the costs and exposures associated with unemployment benefits.
