The Oregon Tax Employment Department has announced that unemployment rates for employers will not change in 2017. The state currently uses Schedule 4 rates and will do so again next year.
Currently, Oregon charges an average 2.26 percent for the first $38,400 paid to each employee. The state changes the premiums owed by employers to keep its unemployment insurance pool solvent. The lack of an increase or decrease is an indicator of a stable state economy.
The Oregon trust fund balance is currently $3.25 billion. At its lowest point during the Recession, the fund balance was a mere $700 million.
Nonprofits have options
The above applies to all Oregon employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes. Many Oregon 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.