OK Member Testimonial

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OK Member Testimonial

• Kiamichi Opportunities joined 501(c) Agencies
  Trust in 2004. Over the years we have saved
  thousands of dollars in unemployment costs and
  accumulated a surplus reserve of 40,000.
• I would strongly encourage you to join the Trust
  if you are serious about saving money and
  protesting unwarranted unemployment claims!
• William L. Smith, CEO
• Kiamichi Opportunities
• Hugo, OK

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How Oklahoma Nonprofit Employers Can Reduce
Unemployment CostsSave MoneySave Time
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Presentation Agenda

• Oklahoma unemployment overview
• How unemployment effects employers UI taxes
• Options available to Oklahoma nonprofits
• Evaluating the best option for your agency

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The Unemployment Overview Recovering
Dec 2013 5.4
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How State Unemployment Insurance (SUI) Works
Every state runs its own unique unemployment
program. Employers contribute into the program
through SUI payments based on taxable wage base
x individual tax rate (based on experience) All
states pool employer contributions. Funds pay
for everyones unemployment charges. Employers in
states with HIGH taxable wage bases pay MORE in
tax. Employers in states with LOW taxable
wage bases pay LESS in tax.
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2014 Taxable Wage Bases
Even though Oklahomas taxable wage base dropped
in 2014 from 20,100 to 18,700 (good news ?) its
still on the high side for the US (bad news ?)
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• IS THERE ANY WAY TO AVOID HIGH
• UNEMPLOYMENT
• TAXES?

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YES! Nonprofit Employers Have Options

• 1972 Congress amended the Social Security
  Act.Nonprofit employers now had to provide
  unemployment benefits. Unlike
• for-profit employers, nonprofit employers were
  given the option to
• A. Pay into the state unemployment pool
• Or
• B. Reimburse state for actual claims

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Reimbursingdefined.

• Reimbursing employers NO LONGER pay into the OK
  State SUI Pool.only pay
• 1 for 1 for valid claims.
• Reimbursing employers ARE NOT subjected to
  increasing UI taxes.
• The process is completely seamless for separated
  employees they file claims as they normally
  would and receive all benefits they deserve.
• Once you switch to reimbursing, you must stay
  reimbursing for 2 years.
• You may only switch to reimbursing status once a
  year Jan 30.

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Benefits/Risk of Reimbursing

• Reimbursing employers no longer pay the flat
  insurance tax but are responsible for claims
  paid out, 1 for 1.
• Benefits
• Usually less expensive
• Reimbursing employers will not be subjected to
  increased unemployment taxes either state or
  federal.
• Many states have cost savings year one when
  switching from SUI program to reimbursing (lag
  state)
• Possible Risks
• Not recommended for high turnover/claim agencies
• Generally not recommended for agencies with less
  than 1 Million in GAP

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Challenges of Reimbursing

• Financial Accurate budgeting and forecasting to
  earmark and set aside funds for claims. Since
  you are responsible for all valid claims, you
  need to be able to pay them.
• Time Consuming Managing, auditing, filing
  paperwork on-time, writing checks to EDD all take
  time and energy out of staff
• Management Many claims are not valid and
  require hearings attended by professional hearing
  reps to fight protests. Also many claims are
  inaccurate and need a trained eye to audit.

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Only in Oklahoma
Current Taxable Wage Base 18,700    Tax
Rate 0.20 7.30    Current Unemployment
Rate 5.2    Benefits Minimum 16
a week / 416 for 26 weeks
Maximum 368 a week / 9,568 for 26
weeks   Deadline for nonprofits January 30,
2015 to become a reimburser   Minimum
Reimbursement Term 2 years   Lag State No
charges until end of 3rd Quarter of the year
you leave the tax system
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Lag states receive year one cash savings
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How claims are paidExplaining Lag
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How to reimburse with confidence

• 501(c) Agencies Trust is the oldest, most
  established third party program in America. We
  have exclusively served nonprofits for since
  1982. Our mission is to save your nonprofit
  money, time and headaches. We serve over 1,400
  nonprofits in the U.S.
• We reduce your unemployment expenses
• cost less than taxes
• provide education to prevent/reduce charges to
  begin with
• Stabilize your budget
• Many professional services included with
  membership

The Trust helps us focus on our mission and the
important work we do in the community. -- Dana
Fraticelli, CEO Boys and Girls Club of
Silicon Valley Trust member since 2005
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Key Services for Trust Members

• Helps you opt out of state unemployment tax
  system
• Provides Claims Management to reduce costs
• Helps you build Reserve Account to pay for future
  claims
• HR Hotline and Educational Services
• Purchasing Point to reduce business costs
• Stop Loss Insurance

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Professional Claims Management

• You are assigned a dedicated team member of
  Unemployment Professionals who
• Are experts in the state of Oklahoma
• Will alert you to any vital unemployment
  news/changes
• Manage the entire claims process on your
  behalf
• Provide hearing reps on every case you want to
  protest
• Plan future strategic layoffs
• The administrative customer support team will
• Manage your dedicated Trust account
• Provide you with quarterly account statements
  (online 24/7 access as well)
• Pay all bills to state on your behalf
• Secure any state-required bonds
• Contest claims and provide hearing reps

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Oklahoma Unemployment Errors

• In 2013 Department of Labor reported they
• OVERCHARGED Oklahoma employers
• 12,562,252

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Claims Management is Key to Savings

• Professional Claims Management
• Our dedicated team of Unemployment Professionals
• Has experience handling unemployment claims.
  The Trust handles and processes over 30,000
  claims annually
• Helps members plan strategic layoffs
• Contests claims and provide hearing reps
  fight over 7,500 claims per year
• - Historic nationwide win rate of 85
• - Reduced members liability over 20 million
  2013
• Pays all bills to state on your behalf
• Audits all charges for errors.
• - 501 uncovers approximately 1,200,000 in
  errors for members every year

The Trust helps us keep our unemployment costs
down, which allows us to feed more people. --
Michael Braude, Dir of Finance and
Administration San Francisco Food Bank
Trust member since 2009
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Your Reserve Account Pays for Claims and more

• Individual Reserve Accounts
• Owned by each member agency
• Includes your quarterly deposits for
  administration,
• your estimated claims and suggested amount for
  
• rainy day claims
• Investments provide returns to members based
  on conservative investment policy
• - 2013 6.9
• - Last 3 Years 9.1
• - 10 year Return 8.4
• In 2013, the return covered 50 of all members
  Trust expenses, and for 10 of Trust members
  their return exceeded their Trust expenses

501cAgencies Trust has become a valued partner
in helping us be the best stewards of the
resources our community has entrusted in our
YMCA -- Cal Johnson, CEO YMCA of Roanoke
Valley Trust member since 2006
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HR Hotline Is Confidential and Informative

• Human Resources Hotline
• Unlimited confidential access
• Staffed by HR experts
• Access to sample forms policies
• Expert advice for your day to day HR problems
• Sounding board for new HR practitioners
• Sanity check for knowledgeable HR practitioners
• Certified webinar trainings that allow you to
  receive CE units from the HRCI
• Assistance for the complicated and not so
  complicated HR issues
• Common questions include
• Federal and/or State Leaves of Absences FMLA
  Policies and Procedures
• Employee Discipline Hiring
• Documentation Workers Comp
• Privacy issues Benefits
• Wage and Hour issues ADA
• Terminations Exempt Employee
  Definitions

All the Trust services work well for us. I use
the HR Hotline all the time and love that
service! -- Nancy Bombrowski, Accounting
Manager Coastal Health Alliance Trust
member since 2000
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Educational Programs Provided at No Cost

• Educational Workshops and Webinars

60 online webinars annually and customized
on-site trainings available Many webinars are
accredited for CE Units Wage Hour
Compliance  Need to Know HR Practices Navigating
the Employee Disciplinary Process Unemployment
101 for reimbursing Nonprofit Employers HR
Documenting Employment Events  Not in Writing? 
Never Happened! Top 10 HR Risks Values Based
Management
Great training session today! Thank you so much
for going through everything and answering all
our questions. -- Karen Walters, Director of
Human Resources AtWork! Trust member since
1990
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Group Purchasing Program Increases Savings
Free access to a billion dollar Group Purchasing
Program PurchasingPoint is a Group Purchasing
Organization that leverages 17 billion in
buying power into volume discounts on everyday
business items and services. Last year,
participating associations collectively saved
over 10 million through PurchasingPoint. Hundre
ds of vendors thousands of products! Aggressive
pricing with discounts as high as 50 on items
from brand name vendors that you already know and
trust.
We signed up for PurchasingPoint and are saving
60 with Pitney Bowes and 30 from Staples. I
LOVE this program! -- Debby Graham, ED
Centerforce Trust member since 2000
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Extra Protection with Insurance

• Stop Loss Insurance

Stop Loss insurance, a unique benefit for members
of 501(c) Agencies Trust, is a group insurance
policy intended to defray the cost of unknown
large layoffs that may occur in the
future.   Each agency is assigned an individual
attachment point annually based on the agencys
payroll, state, and claims history.   Stop Loss
insurance covers claims charges over the
attachment point and within the coverage limit
which are incurred during the coverage year
October 1 through September 30.
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501 Trust Governed by Member Trustees
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How does Trust membership work?

• The Trust becomes your agency of record for
  unemployment claims.
• You and your staff receive full telephone
  training on how to work with us and all about
  our services.
• Once youre a member, the Trust will manage,
  audit, protest and pay for all valid claims on
  your behalf.
• You will have 24/7 online access to your claims
  and will receive quarterly hard copy statements

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The real question Are Nonprofits Really
Overpaying their SUI Taxes?
Of the new members who joined the Trust in 2013,
from their respective states SUI program, the
average annual savings they will realize as a
Trust member is 38,013. (thats a lot of
fundraisers!)
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Recent Agencies Who Joined the Trust
Agency A Annual UI Tax Payments 18,021
Annual UI Claims 4,975 Amount OVERPAID -
ANNUALLY 13,046 Agency B Annual UI Tax
Payments 43,484 Annual UI
Claims 10,346 Amount OVERPAID -
ANNUALLY 33,138 Agency C Annual UI Tax
Payments 215,736 Annual UI Claims
33,000 Amount OVERPAID - ANNUALLY 182,736
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Oklahoma Nonprofits Currently in 501 Trust

Boys Girls Clubs of Oklahoma County, Inc
Kiamichi Opportunities Incorporated
Mental Health Services of Southern Oklahoma
YMCA of Ponca City
Kiamichi Opportunities joined 501 (c) Agencies
Trust in 2004.  Over the years we have saved
thousands of dollars in unemployment costs and
accumulated a surplus reserve account of
40,000.   The Trust assists me in battling
unemployment claims which keep cost down for
everyone.  I would strongly encourage you to join
the Trust if you are serious about saving money
and protesting unwarranted unemployment
claims!   William L. Smith, Executive Director
Kiamichi Opportunities Hugo, OK
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501 is endorsed by many national affiliations
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Recap Explore Your Options

• 1. Continue to pay into state SUI program
• - Compare your taxes with your
  claims/chargesare you paying too much?
• 2. Opt Out and Reimburse with the Trust
• - Use our professional unemployment managers
• - Take advantage of our extended services
• - Relieve the bureaucracy burden from your staff
• - Feel safe and secure

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Sample OK Contribution Rate Notice
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Learn More With A Free Analysis
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No-Cost Evaluation

• We will help you determine your best option.
• Try us out until January 1, 2014 for free!
• Early Enrollment gives you access to many Trust
  services throughout the year, at no cost.

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Questions?

• Questions? Contact Information
• 501c Agencies Trust
• Ellen Dupuy, Trust Representative
• 800-442-4867 phone
• 800-449-8563 fax
• edupuy_at_501c.com