NONPROFIT STATE UNEMPLOYMENT INSURANCE OVERPAYMENTS

By May 15, 2018Blog

Even though all 501(c)(3) nonprofits have the option to not pay their state unemployment insurance (SUI) taxes many still do. What results are massive overpayments. Our industry estimates indicate that 86% of nonprofits are overpaying their state unemployment costs.*

Calculate your organization’s SUI overpayment today using our SUI Overpayment Calculator. Then, if you like, we will show you a full suite of options that you can choose from to replace your SUI taxes – and save thousands of dollars annually.

We’ve worked with thousands of 501(c)(3) nonprofits since 1982 and we have found that nonprofits greatly overpay their SUI expenses every year! Look below at some of the nonprofit sector trends we’ve discovered.

Per the IRS, nonprofits are only legally responsible for reimbursing the state department of labor for any unemployment insurance claims paid to their separated employees. Instead what most nonprofits continue to do is pay their SUI taxes based on a rolling state tax rate that purposely creates overpayments that are used to benefit other employers.


501(c) Services, a 100% employee-owned company, has more than 35 years of experience in providing full-service alternatives to state-run unemployment insurance programs, and provides services to over 1,500 nonprofits nationally.

We are the administrator of the 501(c) Agencies Trust, which offers a comprehensive suite of risk management services and multiple stop-loss protection solutions for its 501(c)(3) nonprofit members, and UInsure, a first dollar unemployment insurance program for 501(c)(3) nonprofits.

*Based on results reported from over 500 taxpaying nonprofits contacted by 501(c) Services.

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