Is your organization a 501(c)(3)? Do you have 10 or more employees? Are you potentially overpaying for unemployment taxes? If you answered yes to each of these three questions, there’s a solution that could ultimately save your nonprofit money when it comes to unemployment taxes–and for nonprofits, every dollar counts! The Unemployment Services Trust has been helping nonprofits save money for over 25 years, and just last year found $3.5 Million in savings with a goal of $7 Million in 2014 for nonprofit organizations nationwide.
Unemployment Services Trust (UST) allows 501(c)(3) organizations to directly reimburse the state only for their own unemployment claims, paying dollar-for-dollar benefits to former employees. According to UST, by opting out the conventional state unemployment insurance program and joining UST, nonprofits will immediately recognize a 60% tax savings, which is guaranteed for the first two years. This savings is not the only benefit of the UST. Each nonprofit who participates owns their own UST account, which receives investment income as well as possible refunds after the first three years for those organizations that have a favorable claims experience. Rather than having a liability on your books when you participate in the state UI program, joining UST creates an asset on the books for your organization.
Why Join Unemployment Services Trust?
- Tax savings
- Long term savings
- Claims monitoring services
- Asset, not a liability
- No state surcharges
- Solid history
- Trust leadership
To learn more about how UST can save your organization money, visit http://www.chooseust.org and fill out their “Savings Quote” form, or talk to your Barnes Dennig accounting professional for more information.