OK Member Testimonial

1. 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

2. How Oklahoma Nonprofit Employers Can: Reduce Unemployment CostsSave MoneySave Time

3. Presentation Agenda • Oklahoma unemployment overview • How unemployment effects employer’s UI taxes • Options available to Oklahoma nonprofits • Evaluating the best option for your agency

4. The Unemployment Overview – Recovering… Dec 2013 = 5.4%

5. 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 everyone’s 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.

6. 2014 Taxable Wage Bases Even though Oklahoma’s 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 )

7. IS THERE ANY WAY TO AVOID HIGH UNEMPLOYMENT TAXES?

8. 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

9. Reimbursing…defined. Reimbursing employers NO LONGERpay 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.

10. 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

11. 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.

12. 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

13. “Lag” states receive year one cash savings

14. How claims are paid—Explaining “Lag”

15. 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

16. 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

17. 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

18. Oklahoma Unemployment “Errors” In 2013 Department of Labor reported they OVERCHARGED Oklahoma employers: $ 12,562,252

19. 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 member’s 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

20. 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 member’s 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

21. 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 Worker’s 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

22. 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

23. 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. Hundreds 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

24. 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 agency’s 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.

25. 501 Trust Governed by Member Trustees

26. 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 you’re 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

27. The real question: Are Nonprofits Really Overpaying their SUI Taxes? Of the new members who joined the Trust in 2013, from their respective state’s SUI program, the average annual savings they will realize as a Trust member is $38,013. (that’s a lot of fundraisers!)

28. 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

29. Oklahoma Nonprofits Currently in 501 Trust “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

30. 501 is endorsed by many national affiliations

31. Recap: Explore Your Options 1. Continue to pay into state SUI program - Compare your taxes with your claims/charges—are 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

32. Sample OK Contribution Rate Notice

33. Learn More With A Free Analysis

34. 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.

35. Questions? Questions? Contact Information: 501c Agencies Trust Ellen Dupuy, Trust Representative 800-442-4867 phone 800-449-8563 fax edupuy@501c.com