Santa Barbara, CA (PRWEB) December 08, 2011
The Unemployment Services Trust (UST) and Aging Services of Georgia are pleased to announce they are entering into a partnership to offer a new member benefit to nonprofits in Georgia: saving money on unemployment expenses.
Aging Services of Georgia is a statewide association that represents nonprofit and mission-driven organizations dedicated to providing quality housing, health care and community-based services. Aging Services of Georgia consists of over 150 housing and service providers that proudly embrace the continuum of aging services, representing over 126,000 residents and clients in Georgia.
With Unemployment Insurance (UI) taxes continuing to rise across the United States, it works to the benefit of most nonprofit organizations to consider opting out of the state unemployment tax system in an effort to reduce operational costs. The current maximum tax rate for employers in Georgia is 7.29%, up from 5.40% in 2008, and these rates will continue to rise until the economy stabilizes. Opting out of the state unemployment tax system is allowed by federal law for 501(c)(3) organizations and can help nonprofits keep more funds to put toward their mission.
Employers who pay into the state unemployment tax system typically pay in $ 2.00 for every $ 1.00 for paid out in benefits. And, last year alone, Georgia erroneously paid out unemployment benefits by an estimated $ 53.6 million, so there are a lot of funds going to waste. Opting out classifies nonprofits as a direct reimbursing employer, where the organization repays the state dollar-for-dollar when an unemployment claim is filed against the organization. In becoming a direct reimbursing employer, organizations have the options to monitor and protest claims on their own or join an unemployment trust. Handling unemployment claims within the organization can be burdensome on Human Resources departments, so many nonprofits choose to join an unemployment trust because they can provide claims monitoring services as a benefit of becoming a member. With UST, organizations make quarterly deposits into a reserve account that is owned by the organization. When unemployment claims arise, UST reimburses the state with funds from the organizations reserve, which will be replenished through future contributions.
UST, a grantor trust founded in 1983 by nonprofits for nonprofits, is the largest national unemployment trust with more than 2,000 member organizations. USTs long-standing association with 501(c)(3) nonprofit organizations provides an average annual savings of $ 35 million in claims and has provided over $ 33 million in refunds to trust members.
For more information about UST, visit http://www.ChooseUST.org or call (888) 249-4788. You can also visit Aging Services of Georgia on the web at http://www.AgingServicesGA.org.