California, like all states, has an unemployment insurance program. This program is funded via taxes assessed by the state government which employers pay. Each employers’ rate is based on a number of factors, including the state in which you operate and your past number of unemployment claims.
On average, California employers paid $355 of state unemployment tax per employee. This rate is expected to significantly increase. Because state unemployment agencies have to stay ahead of the Trust Fund solvency standards set forth by the US Department of Labor, they’re expected to raise rates by over 80 percent in the coming years.
Is your business able to comfortably cover this cost? All too many business owners are answering, “No.” Fortunately, if you’re a 501(c)3 nonprofit, a government entity, or a tribal organization, you can qualify for an alternative program, exempting you from your state unemployment insurance tax.
This unemployment insurance alternative can help free you from the difficulty of unemployment administration, with stringent paperwork requirements and deadlines that could leave your business facing penalties.
Would you like more information about how your 501(c)3, tribal organization, or government entity can avoid the hassle and expense of state unemployment insurance? For insider insight into the regulation in California, Washington, or Oregon, contact Purves & Associates Insurance Services. We will give you the best alternative to paying the state tax.