You’ve probably had an email from firstname.lastname@example.org requesting organizational payroll information and then wondered why 501(c) Agencies Trust needs your gross wages if we’re only handling your unemployment program. Or you might be switching payroll providers and need to know what your tax rate is for unemployment so that the payroll company can correctly file your payroll reports.
What do your payroll and unemployment have in common? Your payroll information and settings are extremely integral to your Trust membership’s reserve account calculations and prompt, direct handling of unemployment claims. If your unemployment information isn’t set up correctly, or if we don’t have your payroll information, it could open you up to late unemployment payments, late or incorrect payroll reporting, or state penalties and interest related to payroll or unemployment.
Below are some proactive tips to help you comply with state deadlines and avoid the need for future corrections or late penalty assessments.
Your organization’s state unemployment insurance (SUI) tax rate is 0% for states covered by Trust membership
Whether you handle payroll internally or use an outside payroll provider, your organization must always report and file quarterly payroll wages for all of your employees along with submitting payment for any relevant payroll taxes. As a member of the Trust, your SUI tax rate is 0% for any states covered by your Trust membership. We do not file your payroll reports for you (neither state nor federal). If you have specific questions regarding filing of your quarterly wage reports with your state or the Federal Government, you should contact your payroll company.
* Please note that in the States of New Jersey and Pennsylvania, you are still required to withhold and submit the employee portion of the unemployment insurance contributions.
Sending quarterly payroll wage report copies to the Trust
Every quarter, after your payroll company files your wage reports, please send us a copy of the summary page showing the total gross quarterly wages to email@example.com or fax to 1-800-654-9018.
We only need a copy of the summary page showing total gross quarterly wages, the Trust utilizes this information to determine your share of allocated Trust operating expenses, reserve account goal, and your stop loss attachment point if applicable.
If your organization has employees in only one state or if all of your states are covered under your Trust membership, you may send a copy of your Federal 941 form instead of each states form.
Sending quarterly wage report copies to us when you have employees in more than one state
Whether you have branch offices in multiple states, or remote workers and commuters in different states, here’s a tip:
- If you have employees in more than one state, and some of those states are not covered by your Trust membership, send us only the state quarterly payroll reports for the states covered by your Trust membership (rather than the federal 941 which includes payroll wages for all states).
- If you’re unsure about which states are covered by your Trust account, please call us at (800) 442-4867 to speak with a member services representative.
Reminder: We do not file either your Federal 941 tax report or your state wage reports.
If you’re switching payroll providers, please ensure they do not change the address of record that is currently in place for your unemployment matters. Your unemployment insurance third-party administrator is set with the state as “TALX UCM”.
You should inform your new payroll company the following:
As a nonprofit, our organization has the option to fund our unemployment insurance obligations by either paying the SUI tax or reimbursing the state, dollar for dollar for unemployment benefits that the state pays to our former employees. The latter method of repaying the state is called the Reimbursement method and is in lieu of paying the state unemployment tax (SUI).
We are set-up with the state as a reimbursing employer. The state has assigned us a reimbursing account # [insert your state account number here], designating our agency as a reimbursing employer.
As our payroll company, you shall submit and file our quarterly wages and tax reports with a -0- (ZERO) SUI tax rate.
* Note – If you are in NJ or PA, your payroll provider must still withhold and submit the employee portion of the unemployment taxes due. Also, as a nonprofit, we pay -0- (ZERO) FUTA tax (Federal Unemployment Tax).
Sample Payroll Reminder Email
As mentioned above in the payroll sample, please call our service team any time at (800) 442-4867 for questions about your Trust membership, reserve account, and general member services.