WASHINGTON STATE UNEMPLOYMENT TAX COLLECTION SOFTWARE FAILURE

By November 2, 2016November 4th, 2016Blog

In 2008 the State of Washington paid for and began to implement a new computer system – Next Generation Tax System (NGTS) – designed to make unemployment tax payments and claims filing easier and more streamlined. Eight years later many in the state are declaring the system a failure and waste of tax-payer dollars.

NWCN-TV in Seattle has an investigative report.

NGTS implementation was supposed to take three years to complete, with a budget of $46.8 million. Now the project is more than $20 million over budget and still not complete – eight years later.

The state and its tax payers continue to spend money on NGTS. This fall the state signed a $3.1 million contract with Microsoft to work on NGTS and a new $635,000 contract with Hewlett-Packard. 

Nonprofits have options

The above headaches can be felt by all Washington employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes. They don’t have to deal with this problematic system in Washington.

Many Washington nonprofits are 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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