Unemployment Services Trust
Our Services Save Money For Nonprofits
The Unemployment Services Trust (UST) is a grantor trust founded in 1983 by nonprofits, for nonprofits, that provides 501(c)(3)s with a safe, cost-effective alternative to paying state unemployment insurance tax. As 501(c)(3)s UST members are allowed to opt out of the state unemployment insurance tax system and reimburse the state for the dollar-for-dollar cost of claims filed by their former employees only.
Every year UST helps thousands of nonprofits across the country save millions of dollars in operating cost through careful claims management, exceptional hearing representation, annual claims audits, and simplified reporting systems.
The Unemployment Services Trust (UST) was created by nonprofits to help other nonprofits save money on their unemployment costs through a combination of lower rates and expert claims administration. The largest nonprofit unemployment trust in the nation, UST annually helps nonprofits save over $35 million on the unemployment claims of their former employees.
UST helps nonprofits take advantage of a federal law that allows 501(c)(3) organizations to opt out of the state’s tax-rated unemployment system and instead pay dollar-for-dollar only for the unemployment claims of their former employees.
In addition, UST provides a dedicated claims administration team that works with you to detect any irregularities, improper charges, or inaccuracies in your account, help you prepare for hearings, and shows up to represent you at all claims cases, in order to help reduce the number of claims your agency sees each year.
UST has been helping nonprofits since 1983 to reduce their unemployment costs by up to 50%. Find out how much your organization can save by visiting www.ChooseUST.org and completing a complimentary Savings Evaluation today.
UST offers an excellent opportunity for nonprofits with 10 or more employees to save an average of $100 per employee, and put more money back toward their mission.
3 Things Your Nonprofit MUST Know About Unemployment Insurance
Unemployment is far from a popular topic at many nonprofits, but, unfortunately, ignoring it doesn’t make it go away. Establishing a proactive approach to learning about and understanding unemployment tax, also known as unemployment insurance (UI), is proven to lower associated costs and help your nonprofit do more with its budget though.
These are the top 3 things every nonprofit should know about California’s state unemployment insurance system.
What is the state Unemployment Insurance (SUI) Tax?
The state Unemployment Insurance (SUI) tax is an insurance program that provides temporary, partial wage replacement to workers who have become unemployed through no fault of their own. The program is funded by Unemployment Taxes paid by employers based on the amount of wages paid for covered employment. The Unemployment Tax is paid on the first $7,000 [California’s Taxable Wage Base] in gross wages an employer pays to an individual in a calendar year. Although some 501(c)(3)s are exempt from paying federal unemployment taxes, most are still liable for state contributions.
Should I Consider Providing Coverage Even If I’m Exempt?
Even for small nonprofits that are exempt from liability, it is encouraged that they pay into the unemployment tax system, or an alternate coverage plan, to protect their current employees from the ups and downs of employment. If nothing else, all employees at a nonprofit should be aware of whether or not they are provided with unemployment coverage because unemployment benefits are a safeguard against the potential economic effects of losing a job. For this reason alone, it is considered an ethical best practice to provide some form of protection for all of your employees.
Cost-Saving Alternatives
There are several alternatives available to nonprofits with 10 or more employees who are interested in independently reimbursing the state for unemployment costs. Unemployment Services Trust (UST) provides an alternative to paying into the state unemployment tax system, and on average saves organizations that join the Trust $100 per employee in the first year of enrollment. Through UST agencies directly reimburse the state only for the claims of their former employees, rather than paying the state unemployment insurance tax which covers all employees throughout the state.
Contact Us
Contact UST for help benchmarking your unemployment insurance costs today:
Phone: (888) 249- 4788
Email: [email protected]
P.O. Box 22657
Santa Barbara, CA 93121