MACo signed on to a joint letter, addressed to Maryland Secretary of Labor Tiffany Robinson, detailing concerns about second quarter billings already being sent out to reimbursors for unemployment insurance (UI), despite the recent passage of S. 4209 Protecting Nonprofits from the Catastrophic Cash Flow Strain Act.
Signed by the American Cancer Society Cancer Action Network, American Heart Association, Goodwill Industries of the Chesapeake, Inc., Maryland Nonprofits, The Y in Central Maryland, and MACo, the letter requests that the Department of Labor “accept 50% payment on the pending second quarter UI billings” and once S.4209 is signed, for the Department “to waive the other 50% to reimbursement accounts for UI.”
From the letter:
As you are aware, S. 4209 serves as the administrative fix to the CARES Act language that created the United States Department of Labor (US DOL) misguidance on relief for reimbursing employers – overriding DOL’s requirement that reimbursing nonprofit and government employers pay 100% of unemployment liabilities before receiving 50% back in “relief.” The bill is awaiting signature by the President; however, this bipartisan legislation is expected to be signed into law in the coming days.
A government entity (Federal, State, County, Municipal government employers) or a 501(C)(3) nonprofit organization, can choose to be a direct reimbursement employer, in that it may choose not to pay quarterly unemployment contributions, but instead pay, on a dollar-for-dollar basis, all of the unemployment benefits awarded to a former worker. Nonprofits and local governments make an actuarial decision to be direct reimbursement employers based on the size and stability of their workforce and regular fluctuation of economic conditions. This pandemic is unprecedented — no one could have foreseen an instance where a significant number of an organization’s workforce would be laid off at once at a time when their services are needed the most. We need relief.