Unemployment Services Trust (UST)
UST is a grantor trust created by and for nonprofit organizations. Rather than subsidizing the unemployment claims of for-profit companies, UST members withdrew from the state unemployment tax system. Under UST rules, a member nonprofit reimburses the state for legitimate unemployment benefits paid to its former employee.
A federal law enacted in 1970 entitles 501(c) 3 organizations to opt out of the state unemployment tax system. More than 2,000 nonprofits already participate in UST and, on average, save 30% over what they were paying in state UI taxes.
The nonprofit completes an application form including information about claim activity during the past four years. If it makes financial sense for your organization to join, you will be notified by UST. In the first two years of participation, your nonprofit receives a guaranteed contribution rate. In the third and future years of participation, rates are determined annually based on claims paid.
UST provides assistance with claims filed by former employees. This service saves nonprofits even more money by helping to disqualify and defer unwarranted claims and by crediting back money to the employer through audits of state billings.
Contact Nonprofit Resources (click here) to learn more about Unemployment Services Trust (UST). |
