Washington has announced that its taxable wage base will increase to $44,000 in 2016. This is an increase of $1,900 from the 2015 wage base amount of $42,100.
The increase in the wage base will allow the minimum weekly unemployment benefit, calculated at 15% of the average weekly wage, to increase to $158 from $151. That increase will affect new claims opened on or after July 5, 2015.
The maximum weekly benefit, calculated at 63% of the average weekly wage, will increase from $637 to $664.
Washington nonprofits can avoid the tax increase
501(c)(3) nonprofits are required to pay for unemployment claims just like their for-profit counterparts. But unlike for-profit businesses, nonprofits have more options to help them strategically manage these payouts. Nonprofits can pay for unemployment claims just like for-profits through their state’s unemployment insurance tax; or they can become a reimbursing employer and pay the state only for claims paid out to former employees.
Most nonprofit organizations still do not realize they have the second option.
Exercising the second option can reduce an organization’s annual unemployment insurance payout by 40 percent. That 40 percent means tens of thousands of dollars don’t leave an organization’s budget for taxes but remain for programs.
That’s what we do
501(c) Agencies Trust is a membership organization that helps its members handle the practice of not paying the state unemployment tax and only reimbursing for claims. We are the oldest and largest such organization in the country.
Our program can typically save organizations with over $1 million in gross annual payroll up to 40% on their state unemployment insurance. Savings are dependent upon an organization’s state tax rate and unemployment claims history.
We conduct free assessments to determine if membership is right for your organization.
Click here for a free assessment to determine if your organization will benefit from membership in 501(c) Agencies Trust.