Certain nonprofit organizations may finance their benefit costs on a tax or direct reimbursement basis. A copy of the determination issued to the organization by the Federal Government establishing this status must be submitted to this department if you wish to be considered a nonprofit organization for UC purposes. A nonprofit organization is subject if it has four or more employes working on the same day in 20 different weeks during a calendar year. Nonprofit organizations which are subject may remain under tax financing or change to reimbursement financing. Under reimbursement financing you pay to the state the entire amount of any unemployment benefits paid rather than a quarterly tax.
Billing is done on a monthly basis.
Whenever a new UC account is established for a nonprofit employer a form to elect reimbursement financing is enclosed with the determination letter. This election form must be returned to this department within 30 days of the date of the determination letter. An assurance of reimbursement must also be provided to this department. In order to complete any election of reimbursement financing an assurance must be filed with the Treasurer of the Wisconsin Unemployment Reserve Fund to guarantee payments required under the reimbursement account. The assurance can be in the form of a surety bond, letter of credit, certificate of deposit or a passbook.