Opting out of state unemployment insurance

We are looking at opting out of our state unemployment insurance. Historically, the amount of benefits we have paid out has been very low - much less than what we have paid into the system. As a non-profit, we have the option to opt out entirely and directly reimburse unemployment benefits paid out.

We are looking at joining the 501C Agencies Trust. They will assist us in managing our claims and they offer stop loss insurance for unexpectedly high claims. Best of all, the money you pay in is recoverable (unlike the state system). The trust invests your reserve account and you earn returns.

From everything I have looked at, this would appear to be an easy decision for us. I only wish we had looked into this sooner.

Any other non-profits out there that are either doing this now or considering it?


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