Asset Protection and Savings
With UST, you receive savings and protection. UST helps you build a reserve account that protects your cash flow and helps cover unexpected unemployment expenses. The account is used to cover current claims, claims in process, and future claims, while adding a margin for any unexpected activity. UST reimburses your state out of this account. In addition, you save money through:
Save up to 60%: For the first two years, your organization receives up to 60% off the rate you paid to the state. Our actuarial review can tell you just how much when you request a savings evaluation. After the first two years, your deposits are determined by the Trust’s actuary and based only on your organization’s own claims, instead of being pooled with other for-profits across the state like in the unemployment tax system.
Protect cash flow: Rather than being impacted by the cash flow risk of paying dollar-for-dollar on your own, your UST account allows you to spread your claims liability over the course of a whole year through quarterly deposits.
Share in UST investment results: Your assets are invested conservatively to help offset the cost of administering your account. In fact with UST’s long, stable history of investment, on average 50% of participants find that the annual cost of administering their UST account is covered through the investment return from their assets.
You own your account: Because you fund your own account, any positive account balance you carry from year to year is considered an asset to your organization. If your organization ever decides to leave UST, the balance of your account will be returned, less any outstanding expenses.
Get cash back: Unlike any state tax-rated unemployment system or private insurance, you can get cash back on your account if your claims are lower than anticipated each year after your third year of participation.
Last year, UST returned more than $7 million in cash back.”