HR Workforce Solutions
By Nonprofits, For Nonprofits
For a limited time, you can download the whitepaper for free and find out:
Learn the secrets of other nonprofit executives and HR staff who have reduced their human resource and unemployment claims costs. Download your complimentary copy of 5 Myths That Are Increasing Your Nonprofit’s HR Costs today.
By providing exclusive access to such cost saving resources, UST aims to educate 501(c)(3) organizations on the latest HR best practices and compliance laws—living up to its mission of “Saving money for nonprofits in order to advance their missions.”
Fill out a complimentary Savings Evaluation to find out if you can save with UST.
But how do you find the right employee? Simple. Recruit a hiring team internally before recruiting any potential staff.
The hiring team you assemble should be your recruitment backbone—helping you create the hiring timeline, outline specific role responsibilities, and conduct interviews.
Here are 6 tips to keep in mind when creating and working with your recruitment team:
Having the support of a dedicated hiring team can help speed up the hiring process, while increasing efficiency. Knowing when and how to engage your hiring staff can help you identify the best possible candidate for any potential position—giving your nonprofit the edge it needs accomplish mission objectives.
Learn more about how to select and utilize your recruitment team here.
mentation of a more civil society. Those elected for the honor “illustrates the power of people pushing society for equal access and opportunity…[as] recently it seems that the insistence for inclusion has need ratcheting up and sector leaders have responded.”
Everyone at UST wou
ld like to extend our heartfelt congratulations to those included. We’d also like to thank all of the organizations that we work with for continuing to fight the good fight and make a difference for those around them.
See the full list of innovators being recognized by this years’ Power & Influence Top 50 here.
Unfortunately, for many states, the realization came a little too late.
During the height of the Recession, almost 40 states borrowed a combined $50 billion from the Federal Unemployment Trust Administration (FUTA) to continue providing jobless benefits. This much debt required many states to make long-term changes to their unemployment systems by either charging penalties or fees to businesses or by cutting jobless benefits. Many made historic cuts to the number of weeks of aid available, but some—like New Jersey which racked up more than $1.5 billion in debt—took a long, hard look at the administration of their trust.
In New Jersey that long, hard look at the administration of their unemployment trust fund resulted in some spectacular results. Over the past four years New Jersey has identified more than 300,000 people who tried to wrongly collect benefits through identity theft, failure to report a new job, schemes, and honest mistakes. Also:
But what did New Jersey do that set them on the path to successfully rebuild their unemployment trust fund?
They updated their system.
Namely, they began using a strategy referred to as ‘identity proofing.’ With the help of LexisNexis, the state of New Jersey requires applicants to verify a wide range of personal information through a quiz on the state labor department’s website. The questions are specifically developed to be ones that the individual who owns an identity could accurately answer.
Then, using the billions of public records that LexisNexis collects, the answers—which range from what kind of car an applicant has, to who lives at their address—help weed out potential frauds.
Less than a year-and-a-half into the effort, more than $4.4 million in improper payments have already been stopped, and almost 650 instances of identity theft have been avoided.
Want to know how well your state is catching improper payments? The U.S. Department of Labor provides this state-by-state breakdown for 2013.
Read more about how New Jersey is fighting improper payments and unemployment fraud here.
Follow these 5 easy steps to create sustainable changes within your nonprofit:
Change is what keeps nonprofits moving forward. Taking the time to foster cooperation amongst your employees is the easiest way to create lasting change—which provides ongoing opportunity for organizational growth within the nonprofit sector.
Learn more about how to gain employee support for organizational change here.
The Department of Labor (DOL) provides a short overview of the program on their website, and summarizes it by saying: “Unemployment Insurance is a federal-state program jointly financed through Federal and state employer payroll taxes. Generally, employers must pay both state and Federal unemployment taxes…However, some state laws differ from the Federal law and employers should contact their state workforce organizations to learn the exact requirements.”
The program itself works to provide jobless workers who have lost their job through no fault of their own with temporary, partial wages while they search for a new position. For more information on how unemployment insurance works, read our more complete overview on the state program.
Is Your Nonprofit Liable?
501(c)(3) nonprofits are exempt from federal unemployment taxes, but may be liable for state contributions if they meet something called the “4 for 20″ provision. This provision is triggered when four or more individuals are employed on the same day for 20 weeks in a calendar year, though not necessarily for consecutive weeks. It is important to note that who is considered “employed” for these purposes is not always straightforward – see Independent Contractors below.
Why Independent Contractors May Still Be Considered Employees
There are different rules and tests used by government organizations to determine independent contractor status, because different organizations are responsible for separate aspects of law. For the purposes of unemployment insurance, the Department of Labor uses something called the “ABC test”, which makes it sound simple, but is more complicated when applied to real situations.
The ABC Test establishes criteria that an work relationship must meet in order to for the services of that individual to not be considered employment. The three parts of the ABC Test relate to employer control/direction of the worker, place(s) of business or courses of business, and proof that the worker is independently established in the trade. A nonprofit may have to pay unemployment taxes even if the IRS or their state revenue services determine that, for income tax purposes, individuals may be independent contractors.
Cost-Saving Alternatives
The Unemployment Services Trust (UST) provides an alternative to paying into the state unemployment tax system, and can be a cost-saving option for nonprofits with more than 10 employees. Through UST, organizations directly reimburse the state only for the claims of their former employees, rather than paying the state unemployment insurance tax which covers all employers throughout the states.
And, because keeping unemployment costs low is vital to so many organizations across the U.S., we’ve added state-by-state information for taxable wage bases from the Department of Labor so you can see where your organization falls on the tax scale.
We encourage nonprofits to be proactive in learning what their options are, and what types of unemployment tax alternatives best suit their needs. Complete a complimentary Savings Evaluation to see if your organization could save money on its unemployment costs.
This post does not constitute official or legal advice. A version of this article originally appeared on blog.nonprofitmaine.org by Molly O’Connell.
Taking the time to plan out one’s budget, on a more consistent basis, can help an organization better identify, prioritize, and build towards their goals. To create an effective budget, follow these 6 simple steps:
In order to grow within the nonprofit sector, organizations must learn how to construct and abide by their determined budgets. Serving as a roadmap to achieving annual objectives, a well thought out budget can help nonprofits succeed without sacrificing excess funds.
Learn more about the importance of nonprofit budget planning here.
The speaker then asked the participants to perform the search again as a collaborative group. He suggested they each pick up one balloon and find the owner of that balloon.
If you haven’t already heard about the study findings, which recently began to go viral, all of the participants were sitting down, with their unique balloon, well before the 5 minute mark.
For the past couple of decades, researchers have been performing live social experiments like this one to illustrate the power of teamwork and collaborative effort. Out of this body of work has come some pretty powerful information that can improve your organization—and it’s collaborative results—if used well.
Not least among the information sets that have been discovered, is the fact that companies that have the best collaborative teams are 10 times more likely to reach high financial goals as those who don’t. So what is it that makes the best teams?
According to MIT researchers, the best teams:
If you’re team is not performing as well as you would like them to, or if your team is fairly homogenous—which researchers have repeatedly found discourages a healthy level of creativity— this article from the Society of Human Resources Management (SHRM) suggests appointing someone within your team to play devil’s advocate.
Other suggestions to improve the collaborative working environment within your team include:
Over the next several weeks 521 nonprofit members of the Unemployment Services Trust (UST) will receive a combined $8,762,873 in cash back. In total this brings participant savings over the past year to more than $43 million in claims savings, audited state returns, and cash back.
“One of the most exciting times of the year at UST is when we get to tell members that they will be receiving money back,” said Donna Groh, Executive Director of UST. “For members that elect to take the cash back as a check this money often helps them expand important initiatives. And, learning the exact impact that each dollar we’re able to save, and return, to nonprofit employers helps motivate us to find even more ways to lower unemployment costs across the board for our members.”
The UST program, which helps nonprofits with 10 or more employees control unemployment-related HR costs, includes an annual review of its 2,000+ nonprofit accounts–using an advanced actuarial model. Unlike the state unemployment tax system or some private insurance where taxes and premiums cannot be refunded (even when benefits paid out are far below what the employer paid in), UST instead allows for cash back when an organization has a positive unemployment claim experience.
UST members whose claims were lower than anticipated, and that are well-funded for future claims, will receive a direct refund or credit to their nonprofit organization.
“Hearing the individual stories about what members plan to do with their cash back is extremely rewarding, and allows us to better emphasize the mission-driven impact of becoming part of the UST program,” seconded Adam Thorn, Director of Operations.
By aiming to ensure that a nonprofit is properly reserved for unemployment claims costs, but not holding excess funds beyond the necessary cushion for future claims, UST helps serve its mission of “Saving money for nonprofits in order to advance their missions.”
To learn more about the UST program for 501(c)(3) employers, visit www.ChooseUST.org or call (888) 249-4788 to speak with an Unemployment Cost Advisor.
About UST: Founded by nonprofits, for nonprofits, UST is the largest unemployment trust in the nation, providing nonprofit organizations with 10 or more employees a safe, cost-effective alternative to paying state unemployment taxes. UST has partnered with 80 state and national nonprofit-based associations to teach their members about their unemployment insurance alternatives. Visit www.ChooseUST.org to learn more.
UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
UST maintains a secure site. This means that information we obtain from you in the process of enrolling is protected and cannot be viewed by others. Information about your agency is provided to our various service providers once you enroll in UST for the purpose of providing you with the best possible service. Your information will never be sold or rented to other entities that are not affiliated with UST. Agencies that are actively enrolled in UST are listed for review by other agencies, UST’s sponsors and potential participants, but no information specific to your agency can be reviewed by anyone not affiliated with UST and not otherwise engaged in providing services to you except as required by law or valid legal process.
Your use of this site and the provision of basic information constitute your consent for UST to use the information supplied.
UST may collect generic information about overall website traffic, and use other analytical information and tools to help us improve our website and provide the best possible information and service. As you browse UST’s website, cookies may also be placed on your computer so that we can better understand what information our visitors are most interested in, and to help direct you to other relevant information. These cookies do not collect personal information such as your name, email, postal address or phone number. To opt out of some of these cookies, click here. If you are a Twitter user, and prefer not to have Twitter ad content tailored to you, learn more here.
Further, our website may contain links to other sites. Anytime you connect to another website, their respective privacy policy will apply and UST is not responsible for the privacy practices of others.
This Privacy Policy and the Terms of Use for our site is subject to change.
But slow down just a minute. Are you sure your organization is ready to hire more employees?
Although only your organization can determine if you’re actually ready to hire new employees, Inc. recommends answering the following questions about your organization, where you want it to go, and what is happening now.
What kind of organizational structure do you want?
Do you want your organization to grow extensively? Are you pretty happy with the size it is now, but unable to meet the demands of your mission with your current staff, or are you hoping to grow organically whenever the need arises?
Will you be able to slow down growth if you need to?
Not all organizations have significant control over how much growth they will experience in any given time. For instance, if your organization helps provide disaster relief to a specific area and the area suddenly experiences a large-scale disaster, your response must be immediate and decisive. Or, if your organization helps animals and takes part in a multi-county animal seizure, you must be able to provide shelter and care for all of the animals involved for the foreseeable future.
But if your organization works to help a select group of impoverished students succeed, it’s reasonable to expect that there will not be an unmanageable influx of students to your program in any given year.
Do you really need help?
Do any of your employees have extra time throughout their week or month that can be used to address some of the needs that you’d like to hire new employees for? If so, can these employees be trained to perform some of the needed tasks?
While it might not fully address your needs, it would cut down on organizational waste and potentially allow for a part-time position to be created in lieu of the more expensive full-time position.
Are you fully prepared to recruit, hire, and train more employees?
Our ThinkHR resources and your UST Customer Service Representative can help you ensure your organization is best positioned to do all three without exposing you to excess liability in the future.
Not yet a member? Learn more about the UST program here.