State tax system vs.
501(c) Agencies Trust

Discover the differences between the state system and the Trust.

If you're a charitable 501(c)(3) organization paying state unemployment insurance (SUI) taxes, you may be paying more than you need to. In fact, if you have low unemployment, you may actually be subsidizing other companies, including for-profit businesses.

Side-by-side comparison

SUI tax system

  • You are required to pay the tax rate established by the state.
  • Your reserves can never be recovered or withdrawn.
  • You pay the tax rate whether or not a claim is filed.
  • You have no unemployment specialist when monitoring your claims.
  • You may be charged for claims of other employers who don't have adequate reserves.
  • You receive no personnel help or advice.

501(c) Agencies Trust

  • You establish a reserve account based on your agency's experience, lowering your costs.
  • You own your reserve account.
  • The Trust reimburses the state for only those claims you incur, keeping costs low.
  • The Trust monitors and protests claims necessary, further reducing costs.
  • You incur no hidden claim charges.
  • Personnel issues get resolved through the 501(c) HR Services program, which is a free benefit of the Trust.

By opting out of the SUI tax system, your agency can:
  • Reduce SUI costs by 25%–50%
  • Receive claims management help to further reduce your costs
  • Own your reserve account and pay only your agency's claims
  • Ensure your funds are continuously invested in a professionally managed fund, earning you interest, which is credited to your reserve account
  • Rest assured your employee's right to file a claim is not affected
  • Benefit from a trust that has a 25-year history of sound fiscal responsibility

Are you already a direct reimburser?

  • The Trust provides professional claims management, from filings to appeals.
  • Your staff spends less time on unemployment issues and more time on your agency's business.
  • The Trust's reserve system enables you to plan for unpredictable claims.
  • Stop loss insurance is provided to take care of major claims losses.
  • Your funds are continuously invested in a professionally managed fund, earning you interest that is credited to your reserve account.

Related information

Learn more about the Trust's mission, background, governance, and assets.