NORTH DAKOTA UNEMPLOYMENT TAXES WILL INCREASE

By December 14, 2015Blog

Job Service of North Dakota has announced that unemployment insurance taxes will increase for employers in 2016.

Job Service reported that the new rates will range from .28 percent to 10.72 percent. The current rates range from .1 percent to 9.7 percent.

“What we’ve seen is an increase in claims, in part due to the slowdown in the oil industry,” said Mark Butland, Job Service associate director of unemployment insurance. “That’s increased the amount of benefits that we’ve been required to pay out.”

Butland says the increase rates will help Job Service meet the unemployment insurance trust fund target of $169 million. The fund is presently at $149 million.

The above applies to all North Dakota employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes. Many North Dakota nonprofits could save as much as 30 percent on their unemployment cost by opting out of the unemployment insurance tax system – an advantage provided to them by the IRS. Doing so affords nonprofits unique avenues that allow them to strategically handle unemployment claims administration and unemployment insurance taxes in ways that for-profits can only dream about.

Contact us today for more information concerning your nonprofit unemployment insurance tax advantages.

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