Public entities and nonprofit organizations, described under section 501(c)(3) of the Internal Revenue Code, can choose to use the reimbursable method of paying for UI benefits.
What is the Reimbursable Method?
Employers who choose the reimbursable method(also known as the cost-of-benefits method) are required to reimburse the UI Fund on a dollar-for-dollar basis for all benefits paid to their former employees and charged to their account.
- For public entity employers, financing under the reimbursable method mustremain in effect fortwocomplete calendar years.
- For nonprofit employers, financing under the reimbursable methodmustremain in effect forfivecomplete calendar years.
- Employers who end their reimbursable coverage remain liable for UI benefits paid to their former employees covered under this program for a period ofthreecalendar years.
Registration
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Usee-Services for Businessto register for your employer payroll tax account number. Be prepared to attach any applicable supporting documentation.
For more information, you can find the steps to register specifically for:
Statements and Payment Information
Statements
Reimbursable employers are sent theStatement of Reimbursable Benefit Charges(DE 428R) each quarter to notify them of UI benefits paid to their former employees.
ANotice of Amount Due(DE 6601) and aStatement of Account(DE 2176) will be sent within 14 days after the DE 428R mail date. Payment is due within 30 days of the DE 6601 and can be made online usinge-Services for Business.
| CALENDAR QUARTER | DE 428R | DE 6601 and DE 2176 |
|---|---|---|
| 1ST QUARTER | LAST 10 DAYS OF APRIL | FIRST 10 DAYS OF MAY |
| 2ND QUARTER | LAST 10 DAYS OF JULY | FIRST 10 DAYS OF AUGUST |
| 3RD QUARTER | LAST 10 DAYS OF OCTOBER | FIRST 10 DAYS OF NOVEMBER |
| 4TH QUARTER | LAST 10 DAYS OF JANUARY | FIRST 10 DAYS OF FEBRUARY |
Forms and Publications
Find forms, publications, and other important documents related to the reimbursable method of paying UI benefits.
- DE 44–California Employer’s Guide
- DE 1NP–Nonprofit Employers Registration and Update Form
- DE 1SNP–Selection of Financing Method by a Nonprofit Organization
- DE 1PE – Selection of Financing Method; Election to Cover Excluded Services for Unemployment Insurance Purposes Only by a Public Entity or Indian Tribe
- DE 231NP–Information Sheet: Nonprofit and/or Public Entities
- DE 1378F–Potential Liability for Unemployment Insurance Benefits When Electing theReimbursable Method of Financing Under the California Unemployment Insurance Code (CUIC)
- DE 231SC–Information Sheet: Specialized Coverage (Elective Coverage for Exempt Workers)
- DE 4527–Managing Unemployment Insurance Costs
- DE 1275A–A Guide to Benefits and Employment Services
- DE 428R-I– Information Sheet: Statement of Reimbursable Benefit Charges (DE 428R)
FAQs
Get answers to frequently asked questions (FAQs) related to UI and the reimbursable method of paying UI benefits.
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If you have questions,Contact Payroll Taxes. You can also contact the Taxpayer Assistance Center at 1-888-745-3886 or visit your localEmployment Tax Office.
