Blogs

June 02, 2013

Results Show UST Members Saving, Satisfied

The 2013 UST Member Satisfaction Survey finds UST Members happy with service and savings found at the Trust.



Santa Barbara, Calif.- The Unemployment Services Trust (UST) is pleased to announce that 93 percent of Trust participants report that they would recommend participation in UST to another nonprofit. Explained one respondent, UST provides “reliable and ‘understandable’ services and communication, and it makes financial sense [to join].”



Providing more than two thousand not-for-profit organizations with unemployment claims management and budgeting services, UST has been aiding 501(c)(3) agencies in reducing their overall unemployment costs for over three decades.

In fact, 78 percent of survey respondents ranked “saving money by no longer paying unemployment taxes” as a primary benefit of being a UST member, while 75 percent also felt that “having professional claims management services” was a “very important” part of the benefits to their organization.

And in an era in which live phone support has proven increasingly scarce, it was not surprising to find that 83 percent ranked the “UST customer support by phone” as a valuable resource. It seems that this support has proven effective, as the vast majority of respondents—over 95 percent—indicated that over the past year they have had no concerns about UST’s service or their concerns were adequately addressed (68.5% and 26.8%, respectively).

With the large majority of respondents in Finance, HR and Administration roles, the Member Satisfaction Survey is a high level overview used to assess recent service enhancements, determine areas for improvement, and enrich the member experience.

“We’re very excited to find that so many of this year’s survey participants are not only happy with their membership in the Trust, but that they feel confident in taking that a step further and would recommend the Trust to their peers,” said Donna Groh, Executive Director.

“To hear that such a large segment of our members are satisfied with their participation in the Trust is deeply gratifying,” agreed Adam Thorn, Director of Operations. “At UST we’re always working to improve our processes and make it even easier for members to lower the cost of unemployment and build a healthy reserve balance, so whenever we have the opportunity to get feedback from members about what could be done to improve the service we carefully consider it.”

Using previous surveys and other member feedback data, the Trust has introduced new processes and features that focus on further reducing unemployment claim liability. Recent enhancements have included a new online claims dashboard to view which former employees have filed for unemployment benefits, a more comprehensive and timely statement of account, and representation by an expert at all unemployment claims hearings.

“Some of our best new ideas have come from members,” Thorn added.

About UST: Founded by nonprofits, for nonprofits, UST is the largest unemployment trust in the nation, providing 501(c)(3) organizations with a safe, cost-effective alternative to paying state unemployment taxes. Equifax Workforce Solutions (WS) is UST’s partner to provide members with claim administration, audits of state charges, and hearing representation if a member’s claims protest goes to court. They also provide educational seminars and training materials to UST member agencies throughout the year. Visit www.ChooseUST.org to learn more.
May 30, 2013

Promote your Best Worker Bees without Disturbing the Whole Hive

Promoting from within can enhance internal productivity and increase external relations—if done right.

Truth be told, the process of hiring from within an organization is fairly common. Having built up trust and demonstrated more competence than the average worker bee, many workers within your organization may appear more than ready for a higher authority position.

But just because your buzziest employees are great at what they do now, it does not mean that they possess the skills and desire to move up within your agency.

While an individual may excel at his or her current tasks, the leap from associate to manager, for example, can damage one’s professional career. For instance, if a promoting manager fails to analyze the key differences in position responsibilities, the promoted worker may be unprepared or unwilling to perform the newly assigned tasks.

Such confusion (and irritability, or push back in some cases) will cause a domino effect within your organization. If other employees either don’t respect their newly appointed superior, or don’t feel that their new superior is prepared for the increase in responsibility, they may develop lazy work habits and become resentful. And when work production decreases, relationships with outside sources—whether with donors or community liaisons—will inevitably suffer.

And without growing external support, your company’s mission will become much harder to advance.

Avoid promotion regrets. Take the time to properly and effectively assess your potential candidates.

Here are some guidelines to follow when considering promoting within:

  • Coach your best workers. Mentor figures can help familiarize promotable employees with vital authoritative skills, so they can be groomed for future leadership roles.
  • Define what characteristics you are looking for. Specify the requirements and expectations necessary for the promotion. You want to eliminate any confusion and vagueness.
  • Constantly check in! After assigning new responsibilities or challenges, be sure to track the worker’s progress and adaptability rate. This will allow you to continue to measure their potential learning capabilities.
  • Give others a chance. While you may originally have someone in mind for the new role, don’t rule out other prospective employees. Certain workers may thrive under the pressure and exceed your expectations.
  • Take baby steps. Give your hardest workers added responsibilities over an extended period of time. The last thing you want is to overwhelm your employee and give them a role they aren’t yet conditioned to handle.


Hiring within is an extensive process, but produces worthwhile results when proper precautions are taken. Be responsible and prepare. Set the example. So your company’s future leaders can one day do the same.

Learn more ways you can turn a good worker into a strong leader here.
May 28, 2013

Reading Resumes Doesn’t Have to Ruin your Day

Even before you finish posting your most recent job opening, resumes start pouring in. Eager candidates are ready to do whatever it is your organization needs done.

Unfortunately eagerness alone doesn’t fit the bill—candidates need the right combination of skills and experience too.

Keeping a few things in mind when screening that burgeoning stack can keep it from becoming a people-eating monolithic pile of epic proportions. These four tips will help.

  1. Know exactly what criteria you’re reading through resumes for. Even if you have more than one opening at your agency, it’s important that you become familiar with the position description and what your hiring managers are looking for in each position.
  2. Create a consistent evaluation process, and always stick to it. Whether you decide to create an Excel spreadsheet that lists every resume alphabetically, or organize resumes into folders of “yes,” “no,” and “maybe,” based on how they meet criteria, it’s important that you follow the same process every time. And although it may sound trivial, keeping your resume screening process consistent can help you breeze through the process, gracefully decline those who applied and aren’t qualified, and get to the next step.
  3. Do a quick sort. Your first run through a resume pile shouldn’t have you hiring private investigators or even Googling a candidate’s name. As you read through resumes the first time, keep in mind what’s most important to the hiring manager and in the posted job description. If a candidate makes it past this stage then conduct a more in-depth review of their resume, check out their online presence, and schedule a phone screening.
  4. Don’t forget that somewhere in one of these piles is your next great employee. As time-consuming as resume screening can be, somewhere in one of those piles is your organization’s next hire. All of your hard work will pay off when they bring in new donors, strengthen community relations, or streamline your most antiquated process.


How do you make sure that reading resumes doesn’t put a damper on your day? Tell us on Facebook!
May 27, 2013

Florida Pays Off Federal Loan that Supplemented Unemployment Benefit Costs

For the past 4 years, Florida has been indebted to the Title XII federal loan program, due to the economic crisis in 2008. Along with 35 other states, Florida’s Unemployment Compensation Trust Fund became insolvent as the economy suffered. While this state trust fund was designed to be self-sustaining, most states had no other option but to take out an extensive loan—coupling a devastatingly shorter and smaller supply of unemployment benefits with a huge outstanding balance owed to the federal governments.

But, Florida was able to make their final loan payment of $9.2 million on Tuesday, May 21st.

Using more than $3.1 billion from employer tax collections and $360 million from an issued Federal Unemployment Tax Act (FUTA) tax credit, Florida became the 14th state to successfully pay off their debt. The remaining states still possess a cumulative outstanding balance of over $21 billion, with an added interest of over $464 million—all of which must be paid off in order to restore their Trust Fund balance.

With their balance finally at $0, and their unemployment rate down to 7.2 percent, Florida is now able to focus their energy on job creation and economic improvement strategies.

While there was no specified payment schedule for the loan, Florida has progressed a lot quicker than some of the larger states. 22 states still remain in debt, but Florida paves the way for economic salvation. And provides a sense of hope to those seeking employment.

Want to learn more about the Florida federal loan pay-off from the Tampa Bay Times? Read this overview.

Compare what your state debt balance is here.
May 14, 2013

Hiring Regrets- Part 2: Hiring Tips for Managers and Making Your Interviews Work

Do they all have updated interview training?

As we learned yesterday, interviews are one of the most effective ways to determine if a potential candidate will fit well within your organization.

In fact, according to research published by DDI International, new hires who reported their hiring manager and staff interviews to be effective were 85% confident in their decision to accept the job, 42% more likely to be planning on staying with the organization, and 39% more likely to be highly engaged!

Luckily, interviewing is a trainable skill.

By providing proper education and coaching at your agency, hiring managers are able to better, more accurately present the job, your company, and how an applicant would interact with their team. And an accurate representation of the position and your organization can lower first year attrition rates, improve employee morale, and boost outlook.

To review your interview training requirements, consider the following:

  • Does your organization provide a question template before the interview to help the interviewer get answers to specific, relevant questions?
  • Does your organization provide a template for after the interview that helps interviewers assess the candidate with as little bias as possible?
  • Do your hiring managers and interviewing staff know which questions could be deemed illegal by federal nondiscrimination standards?
  • How often are interviewing staff at your organization required to refresh their interview skills?
  • Do hiring managers within each department have a consistent means of scoring and evaluating applicants?
  • Are hiring managers at your organization skilled at coaxing useful answers from applicants, or do they often accept vague, generic answers?
  • Does the hiring process at your organization turn applicants off? Is it too long, complicated or demanding?
  • How well do interviewers at your organization listen to responses?


For organizations that need to update their interview training, a quick internet search can reveal hundreds of specialized services catering to many different job requirements, complimentary tricks and tips, and many other resources.

Tell us: How often does your organization evaluate your interview and hiring procedures?
May 13, 2013

Hiring Regrets- Part 1: Employers and New Employees Often Question Hiring Decisions

Have you ever hired someone, only to turn around days or weeks later and wonder, “What in the world was I thinking?” Or worse, have you ever hired someone and then heard that employees are asking the same question?

According to global research about hiring trends published by Development Dimensions International (DDI), half of new employees report that they are experiencing buyer’s remorse after accepting a recent job offer.* But new employees aren’t the only ones rethinking their employment.

Many employers surveyed also reported that they are questioning whether they have made wise hiring decisions, with 1-in-8 new workers employed during a 12-month period having proved to be a “bad hire.”

When staffing directors were asked what the top reasons for hiring mistakes were, nearly one-third of respondents blamed an over-reliance on hiring manager evaluations, while only 21 percent pointed to candidates that had oversold their skills.

And because interviews are one of the best ways to determine how a potential candidate will perform in the role, bad interviews can be poisonous. But only 1-in-3 staffing directors feel that their hiring managers are skilled at conducting high-quality interviews, or are satisfied with their company’s training program for interviewers.

In better news, further research revealed that just over half of all new hires would rate themselves as confident in their decision. Delving deeper, many of those who reported a lack of confidence found that the hiring process had failed to paint a realistic picture of the job, department and company they are now employed by.

On the other hand, in companies where the hiring process yielded an accurate portrayal of the job, company, and department, new hires were far more confident in their decisions, less likely to immediately begin scanning job boards, and highly engaged with the job and their workplace.

So what’s the best way for a nonprofit to address these concerns?

Well-trained hiring managers, realistic portrayals of what the position is really like, and good interviews!

Read more about the research by DDI International at SHRM. And come back tomorrow for Part 2: Hiring Tips for Managers and Making Your Interviews Work.
April 24, 2013

Know Your Sector- The Nonprofit Impact

How well would you guess you know the Nonprofit Sector?

Would you be surprised to learn that 1 in 10 people work for a nonprofit? Or that, the nonprofit sector makes more money--every year-- than the economies of Saudi Arabia, and Sweden combined?

Sometimes we forget the incredible impact of the nonprofit sector overall, but this short video, made by YouTube contributor PhilanthropyGuy, did a good job reminding us at UST! Take a moment and watch it, and let us know what you think. Were you as surprised, and impressed, at everything nonprofits do?

Watch the Video here: Know Your Sector- Nonprofit Impact<
April 17, 2013

Changes to Unemployment Integrity Laws Force Employers to be more Diligent about Claims Management, Says UST

Federally mandated changes to the state-run unemployment system will be rolling into effect over the next 6 months as the October 2013 deadline looms, forcing employers to comply with stricter administration standards or face high penalties. UST helps member nonprofits comply to avoid costly errors.



- Interview Available-

Santa Barbara, CA (April 18, 2013) – In an effort to reduce potential penalties for its nonprofit employer members, the Unemployment Services Trust (UST) has launched several new efforts and technological tools to help address what is being called the federal “UI Integrity mandate.”

Passed as a part of the Trade Adjustment Assistance Extension Act of 2011, the Unemployment Insurance (UI) Integrity mandate requires all employers to provide a complete and timely response to the state’s first request for information about an unemployment claim. Designed to address one of the biggest weaknesses of Unemployment Insurance (UI) funds nationwide—the persistence of unemployment benefits paid in error, which are have cost $10.3 billion in the last year—the UI Integrity Act requires full compliance from all states no later than October 21, 2013. As of today, 5 states (NE, OK, MS, IL, and WV) have enacted legislation with 6 additional states (CA, UT, NM, SD, MN, and NC) passing legislation to be enacted in the coming months. 12 states (WA, OR, ID, MT, WY, CO, AZ, ND, IA, LA, KY, and VA) have pending legislation. The remaining states have yet to take any action to meet the federal deadline.

To ensure that the reform yields the necessary savings, there will be penalties on employers for non-compliance. Any employer that fails to provide a complete and timely response to a claim loses any hope of relief from charges attributable to that claim—even if the employer ultimately wins the claim.

Further, if the state identifies a pattern of failure to provide complete and timely responses, negligent organizations and their claims administrator are at risk of permanently losing valuable protest rights and/or facing monetary penalties.

To address these new liabilities, the Unemployment Services Trust (UST), which helps more than 2,000 nonprofit employers nationwide to reduce the cost of unemployment claims, is conducting regional seminars and state-specific webinars for its members. Through its partnership with Equifax Workforce Solutions (WS), UST’s educational opportunities will allow its nonprofit members to examine how changes to the national UI integrity laws will affect them and to gather helpful tips to improve overall win ratios when protesting improper claims. On average, this type of diligence reduces an employer’s claims costs by 15% each year.

In addition to the seminars and webinars, UST’s nonprofit members now have access to a unique unemployment claim dashboard called CaseBuilder, which was launched by WS earlier this year. “This online dashboard will allow organizations to gather and submit documents and details in a fast, secure environment for all stages of the unemployment process,” reports Workforce Solutions. Current members who utilize CaseBuilder have significantly increased their ability to comply with state requests in a timely manner—which will be extremely pertinent as states begin to integrate UI Integrity legislation into their practices.

Finally, members of UST are already reaping the benefits of “SIDES,” the State Information Data Exchange System that 24 states have implemented, with more scheduled throughout 2013. SIDES is a secure, paperless system which allows UST members and their claims administrator WS to better provide necessary details and documentation at the time of an initial claim filing. Here is how it is helping UST member organizations:

  • It’s electronic, so it’s more secure than paper documents.
  • Electronic delivery of claims from the state will increase the amount of time employers have to respond to requests for separation information.
  • SIDES was specifically designed to require details as a part of the response. Providing the details up front will save time by reducing additional requests for information.


“All employers will be on the hook to respond to every unemployment claim, every time,” says Donna Groh, Executive Director of UST. “We’re trying to establish best practices that ensure our member nonprofits are ahead of the curve—so they can avoid penalties down the road.”

About UST: Founded by nonprofits, for nonprofits, UST is the largest unemployment trust in the nation, providing 501(c)(3) organizations with a safe, cost-effective alternative to paying state unemployment taxes. Equifax Workforce Solutions (WS) is UST’s partner to provide members with claim administration, audits of state charges, and hearing representation if a member’s claims protest goes to court. They also provide educational seminars and training materials to UST member agencies throughout the year. Visit www.ChooseUST.org to learn more.
April 16, 2013

Reforms to Unemployment Insurance Reviewed by House Committee

Chairman Reichert of the House Committee on Ways and Means held a Hearing yesterday on the Implementation of 2012 Unemployment Insurance Reforms that will focus on the implementation of reforms to unemployment benefits enacted in P.L. 112-96, The Middle Class Tax Relief and Job Creation Act.

According to Doug Holmes, President of UWC – Strategic Services on Unemployment & Workers’ Compensation:

"On February 22, 2012, the President signed P.L. 112-96, The Middle Class Tax Relief and Job Creation Act. This legislation extended and reformed the Federal Emergency Unemployment Compensation (EUC) program for the remainder of 2012, which was subsequently extended through December 2013. This legislation also included landmark reforms to the permanent unemployment program, such as creating new job search requirements for Federal benefits, permitting States to have new flexibility to seek “waivers” to promote pro-work reforms, allowing States to screen and test certain UI applicants for illegal drugs, requiring “reemployment eligibility assessments” (REAs) for the long-term unemployed, and requiring States to recover more prior overpayments of UI benefits. The initial implementation of these 2012 reforms was previously explored during a Human Resources Subcommittee hearing in April 2012."

"In announcing the hearing, Chairman Reichert said, 'Fourteen months ago, Republicans and Democrats in the House and the Senate agreed on commonsense reforms to the unemployment insurance system designed to help more Americans return to work sooner. The President signed those policies into law, but the Administration has since been selective in implementing some policies and has created barriers to successfully helping states take action on other policies. This hearing will help us evaluate how the Administration has implemented the 2012 reforms and determine what we can do to help more Americans collect paychecks instead of unemployment checks.'"

UWC provided testimony and advocated in favor of the integrity provisions in the legislation in 2012, many of which were adopted. UWC testimony from the April 25, 2012 hearing in review of implementation can be viewed here.
April 09, 2013

Employment for People with Disabilities Promoted by the National Governors Association

The National Governors Association (NGA) has turned their attention to helping people with disabilities find jobs this year. Focused on building partnerships with companies that help those with disabilities find long-term, satisfying employment by accommodating those once considered unemployable, the NGA will make ongoing recommendations for further improvement in their annual August report.

How has your organization adapted to better accommodate hiring workers with disabilities?

The Association aims to create a plan that provides workers with disabilities a paycheck while strengthening the deeper sense of purpose and belonging many people find in their jobs.

Nationally more than 30 percent of the adult population receiving income-based government assistance has a disability. But, only 1 in 3 adults with disabilities, ages 18 to 64, were employed in 2011—the most recent year statistics are available for—compared with 3 out of 4 adults without a disability.

However, according to the NGA, the U.S. spends about $300 billion annually to support unemployed workers with disabilities, while 67 percent of working-age people with disabilities would rather have a job they feel productive at.

Does your nonprofit support workers with disabilities? How have you encouraged other organization to accommodate workers with disabilities? Has it caused any changes within your organizational structure?

If so, you may be interested in connecting with our partners the National Association of Private Special Education Centers (NAPSEC) which provides private specialized education programs and serves as a community resource or the Association of Developmental Disabilities Providers (ADDP) which works to enhance the political, financial and professional/educational health of their members which care for people with disabilities.

Read coverage on how Walgreens and other employers are working on better accommodating workers with disabilities as a “good business decision” in this Stateline article.
March 28, 2013

Study Finds Nonprofits a Vital Part of Many Nations’ Economies

Nonprofits connect communities.

A study by the John Hopkins University Center for Civil Society Studies (@JHUCCSS) has found that nonprofits are a significant and growing source of jobs and economic activity worldwide.

The study, The State of Global Civil Society and Volunteering: Latest Findings from the Implementation of the UN Nonprofit Handbook, found that if both paid staff members and volunteers are counted, nonprofits employ 7.4 percent of the total workforce—on average—in 13 nations for which this information was available.

Furthermore, because nonprofits are growing so quickly, it was found that their economic activity is outpacing that of the national average of economic growth in many of the nations studied.

Does this ring true at your nonprofit and in your community? Does it make a difference? Let us know!

Want more about the findings? Read this overview.

Read more about the study’s findings here.
March 25, 2013

Meet US(T) Mondays- Megan C.

Megan C.- Customer Service Representative

A sunset Megan captured outside her house last week! How gorgeous is that?!

After starting out with UST’s Accounts Payable department, Megan C. was excited to be offered a position as a Customer Service Representative in February. “I was excited about helping nonprofits potentially save money on their operating costs after having volunteered with nonprofits in the past,” she explains.

“I worked with MDA and helped with their Fill the Boot and Winter Wine Down campaigns. And although I still haven’t had the chance, I’ve wanted to work with the Make-A-Wish foundation since they helped my cousin, who was battling an unknown cancer, ”* she says.

“My cousin was 19 when he passed away and really into gaming, so the Make-A-Wish foundation redid his room and decked it out with all sorts of entertainment and gaming systems that he was then able to play. It made a big difference to him.”

Growing up with a large family, Megan treasures her memories of summers on Cape Cod and at the beach, Thanksgiving with her whole family present, and her grandparents’ stories of growing up in Greece. “Being half Greek, and hearing their stories throughout my own childhood, my grandparents have easily convinced me that I want to visit and experience the culture first hand.”

Have questions for Megan? Tweet her @USTTrust with the hashtag #MeetUSTMondays!

*About 5 percent of those diagnosed with cancer have a previously unrecognized form.
March 21, 2013

Tips for Negotiating a Nonprofit Compensation Package- Part III

Know your priorities before you begin negotiating.

The end of our mnemonic prioritizing what you want most in your benefits and salary package at a new nonprofit is often the hardest. It requires that you legitimately sit down and determine which benefits are the most important to you and where you have the most wiggle room.

For instance, the title of your position more important than the amount of money you make a year? Is an extra $3,000 or $5,000 of salary a make or break issue for a position that you would love to have?

Prioritize

If you get too hung up on a single point in the negotiation process, it can slow everything down and create issues that may haunt you later down the line.

And remember, if you do anything out of line in the negotiation, or if anything in your package is seen as excessive, controversial, or deemed “special interest” there may be problems down the line when it comes to managing your team and working with other stakeholders throughout the organization. So, if you don’t think something in your package is worth fighting for long after negotiations are over, consider leaving it out.

What other tips do you have for negotiating a nonprofit compensation package? Are there things that you can’t live without? Tell us about them on Facebook, Twitter, or LinkedIn!
March 20, 2013

Tips for Negotiating a Nonprofit Compensation Package- Part II

Yesterday we began by explaining how research can give you a better idea of what negotiations will be like—and what items you most want to negotiate—during the pre-hire stage, so today let’s “Focus on the Future.”

Because, as you know sometimes jobs come along that are simply too good to turn down, so in these cases it’s even more important that you recognize the difference between what you need, what you want and where the difference is.

Focus on the future in your negotiations to make sure you don't get stuck in your financial past.

Focus on the Future

If you can, evaluate the non-monetary points of the compensation package to determine if they help fill the gap. Maybe you are able to take a leave of absence every year, or you can create flexible working hours that allow you to work during the times that make the most sense for your life. Since the monetary portions of any compensation package are often the most stringently reviewed—and the least likely to pass muster—look at the amount of value that is gained from other components of the proposed compensation package.

If even this doesn’t pass your compensation test, consider whether you (and the organization) would be interested in revisiting the package a few months down the line when you have shown your worth. It’s possible that the decision makers may be more inclined to offer you better perks if you have proven yourself a valuable member of their organizational team.

What other tips do you have for negotiating a nonprofit compensation package? Are there special things that you don’t think you’d be able live without in the future? Tell us about them on Facebook, Twitter, or LinkedIn!
March 19, 2013

Tips for Negotiating a Nonprofit Compensation Package- Part I

If you’re like many people the idea of having to sit down and negotiate a compensation package—of any kind—dulls the thrill of finding a new job and learning that you’re the right fit. But by preparing yourself for the conversation you are better positioned to come to a happy medium with your potential employer.

If they're fighting this hard, chances are they didn't do their research!

As a starting point, make sure that you’ve gotten far enough along in the interview process that you’re questions are appropriate. The standard suggests that asking in the first meeting is too forward, but by the second or third interview you should have some idea of whether or not the salary fits your expectations and living standards.

Once you have an idea of what the salary may be, and are firmly knowledgeable of the fact that the organization (and you!) have decided you’re right for the position be “Ready For Practice.”

A short mnemonic you can easily remember to help you better retain these principles, “Ready For Practice” translates to: Research, Focus on the Future, and Prioritize.

Let’s start with “Research.”

Research

If you don’t already know them, research the standard compensation benefits for specific nonprofit jobs. Often nonprofits review their executive compensation packages annually against peer organizations, but if you aren’t looking for an executive position you may have more hurdles to jump.

Often nonprofit positions outside of the executive suite are more heavily influenced by internal structures and the current compensation of peer positions. The better you understand these ranges, the more leverage you can create to tailor a request close to the standard that the Board or CEO will accept.

Also look at the financial history of the organization you are interested in working with. If you notice that they have had a rough time for the past 5 years, it may not be in your best interest, or in theirs, for you to ask for $500,000 a year. But, if you look at their financial history and see that they have the right combination of stability and growth that would merit a larger salary for your position, ask for it.

What other tips do you have for negotiating a nonprofit compensation package? Do you have any little known (or best used) research practices others can use? Tell us about them on Facebook, Twitter, or LinkedIn!
March 17, 2013

Meet US(T) Mondays- Lisa

Lisa (in red) poses with Laura, Megan, Angela, Robin, and Kim (from left) with their UST mugs.

Lisa- Customer Service & Enrollment

When Lisa started working with the Unemployment Services Trust (UST) in May of 2012, she was revving to go. “I was excited about the opportunity to finally—after many years of working—be doing something that actually makes a difference,” she explains.

As a Customer Service & Enrollment Specialist, Lisa spends the majority of her time talking to nonprofit organizations all around the U.S. to explain how the Trust can help lower the cost of unemployment, and to get them the information they need to make an informed decision. She prides herself in being a gateway for each new organization; helping each agency weigh their decision about whether to stay with the State UI system, opt out and reimburse on their own, or join the Trust.

“I have volunteered at retirement homes, as well as in the critical care unit working for new babies, and I feel very strongly about both the elderly and infants/children. They are the most vulnerable and innocent populations and I love helping them,” she says.

“But in my time off, I’m such a homebody,” she laughs. “I read, watch movies, do cross-word puzzles and spend time with my family and friends…and dance in the living room. In fact, if I could dance for a living, I would. I love to dance on my own to music, just expressing whatever I feel. But my absolute favorite place to be is curled up on my couch on a rainy day with a great book, my kitties around me, and someone I love next to me.”

As much as Lisa’s cats and her couch may call her name though, she’s still been bitten by the travel bug: “For years the Beatles were an enormous part of my life, and I adore them, so I would be thrilled to have the opportunity to go to Liverpool, England, and see where they began.”

Have questions for Lisa? Want to talk about why the Trust makes sense for so many different orgs, or tell her about your own Beatlemania? Tweet her @USTTrust!
March 14, 2013

Guest Infographic: The Devastating Human Impact of Sequestration Cuts by the National Council of Nonprofits

Made available to us by the National Council of Nonprofits (as featured in their March 11 issue of Nonprofit Advocacy Matters), the following infographic helps illustrate the true human impact of the sequestration.

Sequestration infographic


March 11, 2013

US DOL Releases Instructions on Sequester Impact on UI

by Guest Blogger Douglas J. Holmes, President of UWC- Strategic Services on Unemployment & Workers' Compensation

The US Department of Labor has released instructions to states in response to the federal sequester that became effective March 1, 2013.

Changes to UI, as announced in the recent UI program letter, could affect your organization. Have you read the full letter yet?

Regular state unemployment compensation amounts are not directly impacted by the sequester. However, the details of the impact on funding for UI administration at the federal and state level and in sorting out the reduction amounts for individual weekly Emergency Unemployment Compensation (EUC) and Extended Benefit (EB) claims will be confusing for claimants, state agencies and employers and will likely result in higher error rates due to the short time to respond with programming, lack of training for staff, and misunderstanding of changes.

Sequestration specifically applies to

  1. UI state administrative grants under Title III, Social Security Act
  2. Administrative funding for UCFE, UCX, and administrative funding for TRA, ATAA, and RTAA benefits under the Trade Adjustment Assistance Act
  3. Reemployment and Eligibility Assessments (REAs) for regular UI program claimants
  4. UI national administrative activity funding
  5. Emergency Unemployment Compensation (EUC) benefits and administrative funding
  6. EUC related Reemployment Services and Reemployment and Eligibility Assessments
  7. Federal reimbursements of state Short Time Compensation benefit costs
  8. The federal share of extended benefit reimbursement


The DOL has asked that states make adjustments necessary to implement the reductions as soon as possible, and that EUC weekly benefit amounts and total EUC benefits payable be reduced by 10.7% effective with the week of March 31, 2013. However, recognizing that there may be some states that are not able to implement the reductions on March 31, 2013, states may delay implementation but the applicable percentage reduction will increase with later implementation.

The DOL has prescribed a notice to be sent to claimants explaining the reason for the reduction in EUC payments.

Impact on charges to state UI trust fund and employers in federal share of Extended Benefits

Of particular concern to employers in states that have triggered regular Extended Benefits (EB) is that the federal share of the EB payment will be reduced from the temporary 100% federal reimbursement, increasing the share to be paid through charges to employers and the state unemployment trust fund. Alaska is currently the only state triggered, but this cut in reimbursement should be noted as a concern in other states as well. A state may pass legislation detailed in the DOL program letter to reduce the EB Weekly Benefit Amount by the percentage of the cut.

A number of states enacted optional EB trigger provisions due to or conditioned on there being 100% federal reimbursement for the payments. The federally promised 100% reimbursement is now being cut, raising the policy and legislative issue as to the impact on laws requiring 100% reimbursement and states that assumed 100% federal reimbursement when enacting the optional triggers.

State administrative complexity will cause overpayments

Instead of simply reducing the total amount payable in EUC, the Office of Management and Budget and DOL have decided to implement the reductions with respect to individual weekly claims as well as in reduction of the total. The result of this decision will be difficult programming and administration by states with very little additional administrative funding ($40,000 per state). The determination of the amount of the reduction on a weekly basis, the relationship to state weekly benefit amounts, overpayments and a host of other issues are likely to result in significant numbers of overpayments and confusion on the part of claimants.

Employers and states should review the program letter (linked below), specifically with reference to EB considering measures to avoid increased charges to state unemployment trust funds resulting from a reduced federal share reimbursement.

The full program letter may be viewed at http://wdr.doleta.gov/directives/corr_doc.cfm?DOCN=4985.
March 03, 2013

Meet US(T) Mondays- Robin

Robin (right) and Lisa feel peaceful as they take the tram.

Robin- UST AP Specialist/Claims Analyst

In 1976, Robin’s parents did the unthinkable. They drove across the U.S.—from Southern California to Montreal, Canada—with 3 small children in tow.

For days they stopped at historic landmarks across the East Coast letting their children experience the excitement and historic fervor of some of the most famous historic landmarks in the U.S., including the Liberty Bell, the Statue of Liberty and many others in Washington D.C., before attending the Summer Olympics in Montreal.

Still her favorite childhood memory, it’s possible that this early exposure to the many different cultures of the U.S. helped ground her in her hometown of Carpinteria—where the UST administrative office is located—and led her to UST where she enjoys working with state agencies on behalf of our members.

“I knew UST would be a perfect fit for me,” Robin says, “the challenges of working with state agencies on behalf of nonprofits and providing the best customer service that I can is something that I love doing every day.” And, she sheepishly admits, “I loved the idea of working in my own community. I’ve lived here all of my life, but I’ve never actually worked in town.”

But with only 3 stoplights, and a downtown area that is only about four blocks square, it’s not surprising that Robin had never before worked in town—even if her Grandmother’s portrait does hang in the town’s historic museum.

Have questions for Robin? Want to swap Olympic memories with her? Tweet us @USTTrust!
February 27, 2013

Mugging with UST

Laura, Megan, Angela, Lisa, Robin, and Kim pose with their UST mugs outside our office.the very best of our members "Mugging with UST!"

Beginning mid-March we're going to be featuring the very best of our members "Mugging with UST!"

Send us your pictures* with a UST mug, logo, pen, newsletter, or whatever else you can think of, and we'll feature you on our social media channels! All submissions should be sent to stroup@ChooseUST.org.

*Please include the link to your website if you would like us to also highlight the nonprofit you work for! (We're all about sharing the love.)
February 10, 2013

Meet US(T) Mondays- Angela

Angela- Customer Service Representative

After more than 10 years with UST, Angela—who moved into a newly created position of Customer Service Representative at the beginning of the year—is still excited to talk to nonprofits about UST.

“When I first joined UST I was excited about the program and my involvement in it because it’s a unique way to help nonprofits save money. I love that our purpose is to help nonprofits across the U.S. save on unemployment costs specifically so that their own missions can be furthered!” she remembers.

Always excited to help others succeed, Angela splits her time between school, work, and volunteering at the local schools her daughters go to.

“I’m very social and I like to volunteer when I can. Throughout the year I volunteer at my daughters’ schools and help out whichever way I can, whether that means working as a classroom aide, working at the annual jog-a-thon, or helping out at the snack shack during athletic games.”

And in many ways, her desire to help others comes from early childhood experiences. “I have many fond memories of my childhood,” she says, reminiscing about her walk-in closet that was outfitted with a child-sized grocery cart, all the plastic toy foods you can think of, and a wide array of cabbage patch kids with their matching carrier, diaper bag, car seat, and stroller sets.

“Not all children experience what I had as a child, which is why I feel that it is so important to give back to our community and lend a helping hand to those with less,” she explains.

And while she’s outgrown her cabbage patch kids and the fake plastic food in her closet ‘grocery store’, Angela still loves to bake—especially around the holidays!—and take care of her friends and family. “When I’m not at work or at school, I like to spend my time with family and friends and just hang out. And I make sure to take my bulldog, Chula, on walks on the Bluffs around my house a few times a week so that we don’t forget how lucky we are to live in a place with mountains on one side and the beach on the other!”

Have questions for Angela? Want to congratulate her on the new job? Tweet us at @USTTrust!
February 05, 2013

Meet US(T) Mondays (On Wednesday!)- Laura

When Laura, Customer Service & Enrollment Supervisor, isn’t herding cats around UST, she’s busy at home with her two young daughters—who I might add, are both under the age of 5, and are absolutely adorable?!—and convincing them that art museums featuring anything from romanticism to modern art are where it’s at.

Clearly she isn’t turned off by a tough sell.

So, beginning earlier than the rest of us wake up, Laura heads into the office, gets on the phone, and helps nonprofits across the country solve problems, better understand their rates, and save money that they can then put back toward their core mission.

And Laura jumps at the opportunity. “I was very excited to work with nonprofits,” she explained about her start with UST.

“I had always wanted to get into the nonprofit world as I feel very drawn to cause related endeavors and feel this opportunity fits my skills excellently.”

(Even her blood wants to get involved with helping those who need it! “I donate blood several times a year as a form of community service because I qualify to donate to the local neonatal intensive care unit.”)

And, echoing the sentiments of much of UST, Laura loves spending time with her family when she’s not at work. Recounting time spent growing up she explains, “My family would spend a month of every year in the Redwood National Park.”

“It was an amazing chance to explore nature, spend time together, and learn independence. We would stay in a very small town with only one grocery store/tackle shop and the same families would go there every year. I have very fond memories of the early mornings spent learning to fish with my father and then hiking and swimming with my mom and brother.”

"Those summers taught me that my presence has an affect on the world around me, and I feel that those early experiences really showed me that I can do things to help others succeed, which is-- at the heart of it-- what UST is all about."

Have questions for Laura? Want to know more about the UST Team? Tweet us at @USTTrust!
January 20, 2013

Meet US(T) Mondays- Adam

After spending years working at a major electronics retailer—yeah… you know… the really BIG one. Now imagine working there on Black Friday—as an Operations and Sales Manager, Adam was ready for a change.

“I really liked the idea of supporting organizations that make a difference,” he explained.

Having served the members of UST first as an Operations Manager and then as the Director of Operations, Adam has been exposed to a whole new side of the nonprofit world while working with the Trust. But his success at easily adapting to a new challenge wasn’t unprecedented—he once had to repair his fuel line with a tire patch kit and electric tape to make it home from a camping trip in Death Valley, California—or unexpected. “I appreciate the feeling that comes with overcoming an unexpected obstacle,” he explains, “and I like having the opportunity to test myself.”

Of his move to UST, Adam recalls, “I was fascinated by the variety of organizations that were members of UST: schools, museums, zoos, assisted living centers, mental health associations, symphonies, hospitals…the list goes on and on. And I realized that my definition of ‘nonprofit’ had been really narrow.”

Taking that newfound knowledge to heart, Adam expanded his volunteer and nonprofit experience by doing work with both Habitat for Humanity and the United Way which allowed him to better “appreciate their focus on the communities that they serve.”

Growing up as part of a Navy family that moved around with his father, a career Navy man, a lot, Adam also supports and admires the efforts of programs like the Wounded Warrior Project because he recognizes the need “to honor and serve those who have sacrificed so much on our behalf.”

“One of my favorite childhood memories is having my dad surprise us by coming home early from a nine-month deployment,” he remembers.

And, in fact, family features prominently in many of his stories.

He often begins stories with “My wife…”, and even goes so far as to tell new Trust employees that she features prominently in many of his stories, so that they know who he is talking about when her name pops up. Similarly, his children feature prominently in his office, with mugs designed by them, pictures, and artwork proudly displayed. And, luckily for them, Adam jumps at the chance to learn with, and teach them something that amazes them… makes for a good story as well.

Have questions about Adam or want to know more about how the UST Operations Team works? Follow #MeetUSTMondays or send us your questions at info@chooseUST.org!
January 13, 2013

Meet US(T) Mondays- Cheryl

Cheryl- Account Executive

For the past 16 years Cheryl Jones, VP, Account Executive, has fought relentlessly to help UST thrive. Responsible for all of the personal sales contacts, new business partnerships with state and national nonprofits, and the continued growth and success of the Trust, Cheryl works closely with Donna Groh, the Board of Trustees, and the 75-plus Sponsors that help make sure nonprofits across the country aware of their choices when it comes to funding unemployment.

“I’ve been in the insurance industry for more than 25 years and I jumped at the chance to work with a client whose values I identified strongly with,” explained Cheryl. “I fought hard to make Unemployment Services Trust—which was still HSUT and NNUT—my client and I still love it.

“I have always called UST my ‘Ben & Jerry’s,’ meaning that it’s a great ‘product,’ with great employees which allows you to have a lot of fun at work.”

A frequent traveler for work, Cheryl jumps at the chance to spend time at home relaxing. “I spend so much time traveling for work that when I am home I like to take it easy and be with my friends. I have been very lucky to have traveled to every state and to have met so many interesting people. I used to say that I learned geography by following the Grateful Dead around the country, but really I am thankful every day that I have a job that allows me to go places and meet so many people. I don’t know what I would do if I had to sit at my desk 5 days a week.”

Having completed her dream house in the past couple of years, Cheryl explains, “I would much rather entertain at my house than go out, so I like to use my frequent flyer miles to bring my friends and family out to see me so that I don’t have to get on another plane in my time off.”

Even her perfect weekend revolves around being close to her home, and family and friends. “The perfect weekend would be getting up and exercising then going for a walk or bike ride and having friends over for dinner; if I couldn’t do that though, I would like to be on the water either rafting, boating, snorkeling, walking along the ocean or whale watching.”

Have questions about Cheryl or want to know more about how the UST Operations Team works? Follow #MeetUSTMondays or send us your questions at info@chooseUST.org!
January 06, 2013

Meet US(T) Mondays- Donna

You know their names, and you may even know their voices, but we’d like to introduce you to the “real” UST team! Join us over the next few weeks for #MeetUSTMondays! >In July 2009, Donna Groh joined UST as Executive Director. With broad experience in not-for-profit organizations, associations and healthcare, she is known for her expertise with strategy development, change management, nonprofit governance and board development.

“Even before I joined UST as the Executive Director I had known about the Trust from a previous employer and felt encouraged by what we do,” explained Donna of her earliest encounters with UST.

“While I was with my former employer, Holly Smith-Jones, my predecessor at UST, was a board member for the organization I worked at and helped us make the decision to join the Trust. I remember that I liked what UST does for nonprofits, and at the very height of the Great Recession, I saw it as a challenge to join the Trust and take it forward.”

But working with the Trust isn’t the only thing that Donna does. An avid world traveler Donna has been to all continents except for Antarctica—a blemish she hopes to remove from her wayfarer record in 2014 when she will travel from South America down to Antarctica.

When at home with her dog Murphy—a constant companion—Donna enjoys cooking and entertaining. “My daughter is always in charge of cocktails and I am in charge of the buffet.”

Describing her perfect dinner party, Donna imagines an eclectic group of people that would create a great dynamic. “The meal would be catered by Mario Batali who would, of course, also be a guest.”

“I would also invite Abby Wambach, my favorite female soccer player,” Donna said, admitting that while she was a terrible player herself, she was a decent coach.

“Then I would invite Sherlock Holmes because I love the way his mind works, and Jude Law because I like the way he looks. Clive Cussler because of his adventure stories, and David Foster who has created more hit music sensations than anyone else. Bette Midler would round out the group,” she concluded.

Prior to joining UST, Donna was the Executive Director of Toastmasters International and before that Director of Operations & Business Development for the American Association of Critical-Care Nurses. Previously she served as Vice President/COO of the Irvine Medical Center. She has a BS and Master’s degree from the University of Pennsylvania in Philadelphia and has completed coursework for an Ed.D in Organizational Leadership from Pepperdine University.

If you have questions for Donna, or want to know more about how the UST team works, follow our hashtag (#MeetUSTMondays) or send us your questions on Facebook, LinkedIn, or Twitter!
December 19, 2012

The Impact of UI Claims- Part III

Wondering what kind of impact unemployment claims will have on your nonprofit in 2013? Trying to decide if staffing changes will make a difference in your budget? Well, we’ve got answers!

What Will Affect My Organization During Unemployment Peaks?

The Number of Employees at your Organization. Since smaller organizations may have made smaller contributions into the state-run UI trust fund, even one benefit claim can have a significant impact on the organization’s future experience rating.

The Filing Date of the Benefit Claim. The filing date of a claim determines the base period which determines the former employee’s wages that will be used to calculate their UI benefit payments. In the majority of states, the base period is the first four of the last five completed quarters worked.

For example, if Sally H. worked for Organization ABC from December 2004 to January 2013, and filed a base period claim in February 2013, your organization would be charged for her UI benefits based on her wages from 4th quarter 2011 to 3rd quarter 2012 (or approximately Oct. 2011- Sept. 2012).

The Amount of Wages the Employee Earned. Like most taxable areas, the higher the wages your former employee earned, the higher UI benefits they’ll receive once approved. And, in turn, the more high wage earners you have with high benefit payments, the faster your organization will see an increase in employer taxes.

The Amount of Benefits Paid to a Former Employee. Whenever employees stop receiving benefits before the full amount runs out—usually because the employee has found a new job and stopped collecting—it positively effects your experience credit and tax charges.

It is important to note however that not all employers are subject to paying unemployment taxes and some, like 501(c)(3) organizations with 10 or more employees, have alternative cost saving options available to them that can help reduce the price of unemployment at their organization. To find out if a better option exists for your organization, contact us at info@chooseUST.org or request a complimentary Savings Evaluation today.

Want more information? Send us your questions on Twitter, LinkedIn and Facebook!

December 18, 2012

The Impact of UI Claims- Part II

Wondering what kind of impact unemployment claims will have on your nonprofit in 2013? Trying to decide if staffing changes will make a difference in your budget? Well, we’ve got answers!

What Will the Unemployment Office Look at When Determining the Eligibility and Cost of a Claim?

The Type of Employer your Organization Is. A few nonprofits are not required to pay unemployment claims under IRS tax code 501(c)(3). But if you have employed four or more individuals in some portion of a day in each of twenty different calendar weeks, in either the current or preceding calendar year, you must pay into the unemployment system, and your employees are eligible for benefits. Regardless of whether you are exempt or not, it is highly encouraged because it provides financial security to your employees should they lose their job through no fault of their own. If your organization is required to pay (or reimburse) the state for unemployment claims, the unemployment office will continue examining the claim to determine the eligibility of your former employee.

The Type of Employee Involved. Not all employee types qualify to collect unemployment benefits. For example, part-time workers or independent contractors may not qualify for unemployment benefits. However, if an employee is misclassified or other errors occur during the claims review process your organization may be held responsible for benefits paid to the former employee.

The Number of Places the Employee Has Worked. If a former employee worked for several employers within the base period*, the charge to your organization—and the effect it will have on your taxes—may be less because it would be split among all of the employers identified in the base period claim.

The Length of Time the Employee Worked at your Organization. The longer an employee has worked at your organization, the more likely it is that your agency will shoulder the brunt (and eventually all) of the base period claim effects.

The Nature of the Employee Separation. Whenever a new benefits claim is filed, the unemployment office determines whether or not a former employee meets eligibility requirements to collect benefits under state law. In some cases, the unemployment office may determine to provide benefits to an employee you don’t think should collect based on the nature of the separating event, and your organization is able to contest these at an unemployment hearing. Proper documentation is crucial to winning the case so you must be prepared, and some nonprofit trusts like UST will even provide you with a case representative to help you with court cases. (Nonprofits who used a hearing representative had a 72.3% win rate compared to 57.4% for employers who did not**).

It is important to note however that not all employers are subject to paying unemployment taxes and some, like 501(c)(3) organizations with 10 or more employees, have alternative cost saving options available to them that can help reduce the price of unemployment at their organization. To find out if a better option exists for your organization, contact us at info@chooseUST.org or request a complimentary Savings Evaluation today.

Want more information? Send us your questions on Twitter, LinkedIn and Facebook!

Missed a Part? Read Part I here. Read Part II here.

* Base period claims are those in which a claim form is sent to EACH employer for which the claimant worked during his base period (usually the first four of the last five completed calendar quarters immediately preceding the beginning of a claimant’s benefit year). So if your former employee is hired for only a short duration by another employer, you both may liable for a portion of their benefits.

** Source: Equifax Workforce Solutions
December 17, 2012

The Impact of UI Claims- Part I

 

Wondering what kind of impact unemployment claims will have on your nonprofit in 2013? Trying to decide if staffing changes will make a difference in your budget? Well, we’ve got answers!

Why Does Unemployment Insurance Matter?

Unemployment insurance was designed to provide jobless workers—who lost their jobs through no fault of their own—with weekly income during periods of unemployment. Lasting up to 26 weeks in normal circumstances, the payment amounts vary by state and are determined in part by state-dictated taxable wage bases. For most employers, the rate contributed is hinged on their “experience rating.”

The experience rating of each organization takes into account:
 
  1. The employer’s size,
  2. The amount the organization has paid into the state UI tax system, and
  3. The amount of UI benefits collected by former employees in a given period of time.


For employees, unemployment benefits provide a form of financial protection that helps them pay household expenses while looking for their next job. And, in extreme cases, unemployment benefits may enable them to continue paying for basic necessities until they are re-employed.

For nonprofit employers, paying UI taxes to the state or reimbursing benefits paid by the state provides the peace of mind that goes with knowing that employees will be financially taken care of if a bad economy, lost grants, or withdrawn financial support forces your organization to let someone on your team go.

It is important to note however that not all employers are subject to paying unemployment taxes and some, like 501(c)(3) organizations with 10 or more employees, have alternative cost saving options available to them that can help reduce the price of unemployment at their organization. To find out if a better option exists for your organization, contact us at info@chooseUST.org or request a complimentary Savings Evaluation today.

Want more information? Send us your questions on Twitter, LinkedIn and Facebook!

Want more info? Read Part II here, and Part III here.
December 12, 2012

Matching Employees Jobs with Pay

How much are your employees worth? And what would you do without them?

If you don’t know the answer to both of these questions, it might be time to take a look at how traditional job evaluations are giving way to salaries that are now based on market pricing and a little flexibility.

Turning away from traditional job evaluations that looked at job ranking, job classification, point factor, and factor comparison, many newer job evaluation tactics take into account the fact that people are more fluid in their careers and no longer care how their job is evaluated—so long as they’re being paid fairly. New salary determination methods also take into account that you should never pay more than the job is worth to you.

For nonprofits, especially those where employees give their all to change the status quo and to make a difference for your mission determining salary scales based on market pricing might not be a bad idea.

But nonprofit market pricing doesn’t always compare to the for-profit side where employees may have an easier time paying off their cars, homes, and bills, as well as enjoying that extra dinner out and more vacations.

When you’re ready to set salaries for your nonprofit staff, make sure that you (and Human Resources) know:

  • The upper limit of what each job is worth to your organization and how that compares to other companies in your area
  • What the lowest acceptable wage you could pay—for that job—in your market is


After determining those, it’s time to evaluate the pay structure of your nonprofit employees using a base job salary and base area salary.

Because more jobs are opening up in the for-profit sector—jobs that can often afford to pay employees higher salaries with better benefits and more stability—it’s important that you take into account more than just what job surveys suggest is a fair salary range. Consider questions that look at your employee’s health and happiness while doing this—i.e. would $1500 a month pay the rent or mortgage for your volunteer manager? Would they be able to afford their base bills too? Or would they be left commuting long hours because they couldn’t afford area rent? Do you know how that would affect your agency?

State economic development offices and regional development agencies can help provide up-to-date and accurate state and regional pay information that can then be broken down by skill level and neighborhoods. The U.S. Department of Labor maintains a similar database that can help you determine fair pay scales for your employees.

Your best resource is always other area nonprofits though. Although they might not cover the same mission that you do, other nonprofit employers can help you determine if your pay scale is fair. All you have to do is ask a few of the right questions!

Consider asking these questions in addition to those you think of on your own:

  • What type of industry do your employees work in?
  • What types of job titles do you have at your nonprofit?
  • How many employees work for your nonprofit?
  • What level of education or experience is required for your employees?
  • How long would you like a new employee to work for your organization?
  • How long do the majority of your employees stay with your nonprofit?
December 09, 2012

$2M in Unemployment Benefits go to Inmates in Missouri. Wait…What?!

In early October, after a 3-month cross matching study, it was reported through official channels that nearly $2 million in unemployment benefits were paid to 1,100 people in county jails or state prisons throughout the State of Missouri. $43,000 of that went to a single inmate in Missouri’s Cook County Jail.

While the recipients may now face state and/or federal criminal fraud charges in addition to their previous charges, the overpayments in Missouri are simply a small indication of the larger, systematic overpayments—more than $13.7 billion this year!—that are a regular occurrence across the country.

Unfortunately there is little that can be done to force those who have maliciously collected improper payments to repay their debt, which has further weakened the already unstable UI system. And, as is to be expected in an employer funded tax pool that has already been maxed out in many states, the overpayments—whether intentionally improper or not—have strained the ability of businesses to further develop, which has prevented necessary workforce expansions. And ultimately continues to hurt the economic recovery.

Although unemployment benefits only provide a portion of a jobless workers former wages (when properly collected), the benefit funds allow those still looking for work to continue supporting themselves by paying for basic household and living expenses, which has allowed nonprofits that serve those hardest hit by the financial depression to reach a greater portion of the population most dependent on their services for basic living needs.

According to the Congressional Budget Office though, more than $250 billion have been spent on unemployment benefits in the last five years, with more than two million jobless workers currently receiving expanded UI benefits from the Federal Government, which totaled $94 billion in the last fiscal year alone.

For nonprofits still paying into the state’s pooled UI tax system, continued overpayments and the high cost of paying for the unemployment trends at other, larger companies, further creates a drain on much needed monetary resources that could be better directed back toward their founding mission.

To learn more about how your nonprofit can opt out of the state’s UI tax system and reduce unemployment costs request a quote today.