501(c) Agencies Trust

How the Trust works

Find out how 501(c) Agencies Trust can save your nonprofit organization money and how to join.

Stop paying unemployment taxes—legally

Federal law allows 501(c)(3) organizations to opt out of the state tax system and become reimbursing employers.

Replace your SUI tax system with 501(c) Agencies Trust

When you leave the SUI tax system and become a Trust member, you establish a reserve account with the Trust. This account is set up based on your agency's unemployment claims experience and gross annual payroll. The Trust then reimburses the state from your account for those claims benefits paid to former employees. Your employee's right to apply for unemployment benefits is not affected. Reserving funds for future claims improves budget planning and limits risk.

Save your organization money

Most nonprofit organizations pay $2.20 into the tax system for every $1 of claims paid to former employees. Due to their lower turnover rate, nonprofit employers subsidize the higher cost of commercial employers. The Trust is a more cost-effective alternative to the state unemployment insurance tax system, saving your organization money in multiple ways.

• Members of the Trust reimburse the state for only those claims they may incur, while not affecting an employee's right to file a claim.
• The Trust offers professional claims management and claims processing that save staff time.
• The Trust's programs reduce unemployment costs to the lowest possible level — and keep it there.

See a side-by-side comparison of the SUI system and the Trust

Become a member

Becoming a member is simple. To determine if the Trust could benefit your organization, take the self-assessment survey. If you already believe the Trust can benefit your organization and you're ready to enroll, complete the enrollment form, and the Trust administrator will contact you within a few days with a cost-free analysis of your current unemployment funding and the benefits the Trust can offer.