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SOURCE: Unemployment Services Trust
Partnership will provide thousands of dollars of potential savings for nonprofits during times of increased UI debt and demand for increased educational services, reports the Unemployment Services Trust.
Santa Barbara, Calif. (PRWEB) October 04, 2012
Unemployment Services Trust (UST) and the National Association of Private Special Education Centers (NAPSEC) are pleased to announce a new partnership. Joining forces to provide a valuable money saving option to special education centers across the U.S., nonprofits associated with NAPSEC will now have greater access to reduced unemployment costs.
The partnership will allow special education centers with a 501(c)(3) tax designation to better take advantage of a 1972 federal law that allows nonprofits to opt out of the state unemployment tax system. By paying only the dollar-for-dollar cost of unemployment benefits paid to former employees most nonprofits that opt out of their state system see a significant reduction in their annual unemployment costs.
For many nonprofits with 10 or more employees and a relatively stable unemployment history, the state pooling system often over-charges when it comes to unemployment. Because high administrative costs are included in the state tax rate nonprofits can end up paying for the layoffs of other employers since the system is built to cover all employers’ unemployment benefit costs even when the taxes collected don’t. As a reimbursing employer, nonprofits are able to pay only for their own claims.
As the interest rates on federally funded unemployment loans soar, state-wide overpayments and Unemployment Insurance (UI) taxes cut deep. This makes it to the benefit of all nonprofit education providers to consider opting out of the state tax-rated UI system to reduce internal operating costs and put more money toward educating the individuals they serve.
This partnership will provide a multitude of benefits to special education centers seeking to preserve their funding while also allowing them to do more for those that they serve. By reducing SUI tax rates by up to 50 percent, UST has found that the average nonprofit member that joins the Trust saves an average of $11,364 a year and almost $100 per employee.
Finally, because the United States has overpaid more than $13.7 billion over the last year in improper and fraudulent benefit filings, nonprofits that leave the state and elect to join UST receive further savings through UST’s long-term partnership with TALX Employer Services. TALX, the industry leader and largest provider of employment and income verifications in the U.S., saves UST members more than $35 million a year in mitigated claims charges.
The National Association of Private Special Education Centers is the indispensable voice and core resource for the private special education community. NAPSEC member programs provide educational therapeutic services to publically and privately placed individuals that are served by early intervention service members, postsecondary college experience, and adult living programs that serve individuals that have graduated or who are over 21 and no longer eligible for services under the Individuals with Disabilities Education Act (IDEA).
Founded by nonprofits, for nonprofits, UST is the largest unemployment trust in the nation, providing a safe, cost-effective alternative to paying state unemployment taxes. Partnering with TALX, the nation’s largest HR, payroll, and workforce solutions provider, UST regularly saves nonprofit members money through dedicated oversight and unemployment cost management. Visit http://www.ChooseUST.org to request a savings evaluation and find out whether opting out of the state UI system is right for your 501(c)(3).
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