Opting Out of the State Unemployment Tax System
Have you seen your 2004 Unemployment Tax rate? The average increase for California Employers is 74%! Many have seen increases in excess of 100%! However, as a 501(c)(3) Nonprofit Corporation you DO NOT have to pay these exorbitantly high rates.
You may elect to become a ‘Reimbursing Employer’ by joining The Nonprofit Trust and lowering your costs by 50% or more, every year. Choosing this option is a simple and effective way to enhance your organization’s cash flow. Not only will you likely significantly reduce your annual unemployment expense, but you will build a reserve account with the Trust. However, unlike with the EDD, YOU own your reserve account. It’s your money and will never be used to subsidize other California employers as with the EDD.
In addition, membership in Trust includes the services of a professional claims administrator that will not only reduce the staff time you have to spend on unemployment claims but will audit each and every claim filed against your organization. Why is that important? Because in 2002 alone, the EDD overpaid benefits by an estimated $395,000,000. How much of those overpayments came out of your budget?
The State allows you to take advantage of this opportunity once a quarter. If you switch by 3/31/06, you can exit the high cost of the State Unemployment Tax system retroactive to 1/1/06! In these times of shrinking budgets and funding cutbacks you owe it to your organization to explore alternate sources of revenue wherever feasible. The Nonprofit Trust provides a safe, effective way of redirecting your otherwise wasted tax contributions back into your programs.
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We look forward to learning more about your programs and discussing how we can lower your costs.
Sincerely,
Schweickert & Company
15 Peters Canyon Road
Irvine, CA 92606
Direct Phone/Fax: 714-689-1772
Email: Laura@schweickert.com
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