As the pioneer in alternative unemployment insurance products, UC Assure offers an unmatched level of experience and expertise on unemployment compensation for Non-Profits and public employers.
Unemployment Compensation Insurance History
For years, state unemployment tax systems have pooled taxes paid by all employers in the tax system to fund each state’s unemployment compensation programs. In practice, this means
that employers wind up paying unemployment benefits for companies that require more unemployment compensation than their share of the tax covers.
In 1972, an amendment to the Federal Unemployment Tax Act allowed 501(c)(3) Non-Profits, Native American Tribes, and Public sector employers to finance their own unemployment
obligations independent of the state unemployment tax system. This allows these groups to explore financing their unemployment benefits without the socialized costs of maximum
rated employers and bureaucratic overhead of the unemployment system.