Nonprofits across the U.S. are increasingly opting out of their state unemployment tax system, as allowed by federal law, reveals the Unemployment Services Trust (UST). If properly managed, the tax savings can be significant.
Although the economy is beginning to look up, state unemployment fund deficits indicate that employers will see increased unemployment taxes. 501(c)(3)s should know that their tax options differ from for-profits, and could give them an advantage.