Is your Nonprofit paying more than it Needs to into state unemployment?
- charlie
- Jun 26
- 1 min read
Many tax-exempt organizations don't realize they have options when it comes to unemployment funding.
In Illinois, the average state unemployment tax can cost an employer roughly $460 per employee each year. For organizations with higher unemployment tax rates, that cost can be significantly more.
Now consider this:
A nonprofit with 100 employees—full-time and part-time combined—could be spending approximately $46,000 annually on unemployment taxes.
Organizations that qualify for a nonprofit unemployment reimbursement program often save 25% on average, with some achieving savings as high as 45%.
That means a 100-employee organization could potentially save:
Average savings (25%): More than $11,500 per year
Potential savings (45%): More than $20,000 per year
Those are dollars that can be redirected to your mission, your employees, or the communities you serve.
The most surprising part? Many nonprofit leaders have never been told they have an alternative to the traditional state unemployment tax system.
Our goal is simple: educate tax-exempt organizations on their options so they can make informed financial decisions.
If your organization has never reviewed its unemployment funding strategy, now is a great time to ask:
Please feel free to reply and request the short application if you would like a quote prior to a conversation.
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