California employers have recently received their “Notice of Contribution Rates” from the State Department of Labor. (The employers’ state unemployment insurance tax rate notice.) This document can help nonprofits uncover any new unemployment insurance tax liability. It can also identify savings they could receive by exercising their right as a 501(c)(3) to not pay state unemployment insurance taxes.
Click on the video below to view our two-minute explainer about how to review the California state unemployment insurance tax rate notice.
Now that you understand better what information is contained in the tax rate notice, you can determine if your organization is overpaying the state for your unemployment insurance.
We have developed an online calculator that uses the data on the Notice of Contribution Rates to calculate your unemployment insurance tax overpayment. After 30 years of working with nonprofits like yours, we have determined that more than 80% of organizations overpay their state unemployment insurance tax.
Go to www.501c.com/overpayments to see if you are one of the 80%. The calculator is completely anonymous.
After you’ve reviewed your tax rate notice and discovered any potential overpayment, feel free to request a savings analysis for more details about how we can help return that overpayment to your budget by paying your unemployment claims as you go.
Good luck with your calculations!
501(c) Services 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. It is 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)s, government entities, and tribally owned businesses.