Questions & Answers - UST
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Nonprofit organizations that join UST as a reimbursing employer can save up to 60% in the first two years of participation over their former state unemployment insurance taxes. Historically, members continue to save thousands over the long-term. To learn how much you could save, request a Free Cost Analysis.
UST offers program options that both tax-rated and reimbursing nonprofits can benefit from. To find out which program is the right fit for your organization, fill out our free cost analysis today!
For employees opting out of the state unemployment tax system, UST streamlines the process by helping with state documentation and signing of enrollment documents. As a reimbursing employer, your organization may be eligible to be a part of one of the following programs:
To determine which program is right for your organization, submit a free cost analysis.
Yes. Many organizations that are reimbursing employers join UST to help manage their claims and cash flow. Through expert claims administration, UST helps organizations save money by mitigating improper claims and auditing charges from the state to find inaccuracies and overpayments.
Yes. UST offers valuable benefits that will provide tax-rated organizations with the resources to operate efficiently while saving money. UST's programs have several features designed to help tax-rated employers better manage their unemployment costs.
UST is a grantor trust owned by its participating members. There is no overarching parent corporation for UST with interest in generating a profit. Service providers are contracted and overseen by the Board of Trustees, allowing UST to maintain the lowest administrative fees in the industry.
UST is governed by Trustees elected by participating member organizations. Trustees serve staggered three-year terms and oversee the efficient operation of UST. Each Trustee has extensive experience in nonprofit management and finance, and must work for a nonprofit that is already a Trust member. The Executive Director manages the relationships between UST and its service providers to ensure that they are meeting both contractual obligations and Trustee requirements.
Historically, UST is financially sound. With 30 years’ experience, it has never had to assess its membership or borrow to meet claims obligations. Currently, UST has a secure asset base of more than $150 million.
UST’s assets are invested to preserve participants’ capital. Its conservative investment portfolio includes a ratio of stocks, bonds, and alternatives that are safely positioned to provide investment income. Over the last 10 years, investment gains have routinely offset program participation costs for more than half of our members.
Participants in UST's Trust pre-fund their unemployment costs, and own the funds held in their UST reserve. Each quarter, our actuary reviews member reserves to identify funds that can be returned to organizations whose reserves exceed their projected unemployment risk.
Participants can terminate their membership with UST at any time. However, most states require a nonprofit remain a reimbursing employer for two years before it can return to the state UI system.
At the time of severance, the nonprofit releases UST from further claims obligations and UST returns any account balance, minus outstanding claims costs, at the completion of the trust audit for the year in which termination occurred. A participant would be liable for any deficit balance in its account at the time of termination.
One of UST's goals is to minimize member's cash flow volatility due to unemployment fluctuations. Members are permitted to temporarily carry a deficit reserve balance—subject to a cap based on the size of the organization’s payroll—and repay that deficit within the following year. Ultimately, each member organization is responsible for its own charges and deposit requirements are based on the individual member’s experience.