As of July 1, 2024, ALL nonprofits, regardless of size, will be required to be registered with the VT Department of Labor to participate in unemployment insurance.
In 2023, the Vermont Legislature passed H. 217 (Act 76), which eliminated the unemployment insurance exemption for nonprofits employing three or fewer employees. Before July 1, 2024, ALL nonprofits must register with the VT Department of Labor to provide unemployment insurance to their employees.
What SMALL nonprofit employers (with 3 or fewer employees) need to know:
- In the coming months, Common Good Vermont will be releasing more information to help nonprofit employers evaluate their options and comply with the new mandate.
- Please hold on registering with the State for the time being: Instructions for new employers registering with the Department of Labor will be announced as we get closer to the July 1, 2024.
What ALL nonprofit employers need to know:
- SAVE THE DATE! Common Good Vermont and the Department of Labor will be hosting an informational session on November 8th at 2 pm. This session will provide an overview of unemployment insurance requirements and options for nonprofit employers, as well serve as an opportunity to ask questions. Both in-person and remote participation will be supported.
- All nonprofit employers have the option to participate in unemployment insurance as either a taxable or reimbursable employer.
- Taxable employers:
- Pay quarterly contributions to the state based on taxable payroll (currently capped at
- Have unemployment insurance claims made against them paid directly from the State UI Trust Fund
- Pay federal unemployment insurance taxes (FUTA) if they are not a 501(c)3.
- Reimbursable employers:
- Do not pay state or federal unemployment insurance taxes
- Are liable to pay the State back in full their share of any benefit claim made by individuals who were employed by the organization during their base period, as well as any benefit charges that cannot be charged to another employer
- Will not be relieved of “charges” (payments) for any reason and cannot dispute claims
- Taxable employers:
- More in-depth information about being a taxable or reimbursable employer, including the pros and cons of each option and how to estimate your potential costs will be released in the coming months.
Please email [email protected] with any questions.