>>> Who We Are
The 501 Alliance helps hundreds of agencies just like yours meet their obligations to employees under state unemployment compensation regulations and is an alternative to the Unemployment Insurance Agency (UIA).
>>> Our History
We were founded in 1972 when new tax laws made it possible for nonprofit agencies to handle unemployment compensation services through group reimbursement. Since then, The 501 Alliance has been one of the leading group unemployment compensation providers in Michigan.
>>> The UIA
The Unemployment Insurance Agency (UIA) is the state agency that administers unemployment compensation. Some form of coverage is required and it is funded by a tax to the employer or by direct reimbursement of unemployment charges.
What many nonprofit employers don’t know is that this tax can be controlled. By joining The 501 Alliance, the need for unemployment compensation can be filled by a lower cost alternative.
>>> How Our Program Works
The 501 Alliance pools funds from our members and pays out claims on a direct reimbursement relationship with the state. The unused funds in the pool are invested to cover The 501 Alliance’s operating expenses and to reduce the contribution rates of our member agencies.
Since the UIA is required to allow all employers into its system, it does not have the advantage we have of being able to specialize in nonprofits. This means both contributing and reimbursing employers with the state have experienced lower costs when switching to The 501 Alliance from the UIA. Current members also realize substantial tax rate advantages based on their individual experience rating.
It’s no wonder so many nonprofits have joined The 501 Alliance to control their costs and remain financially stable. A stability that’s backed up by a multi-million dollar reserve fund to protect our members.
>>> Services We Provide
Membership with The 501 Alliance means we’ll provide your agency with services that set us apart from the UIA and other third party administrators. We’ll process your claims, review all determinations for errors, provide monthly activity reports, verify all benefit charges and provide training to help your agency control your unemployment costs.
>>> Costs to Your Agency
There are no costs! Unlike the UIA, which takes 1% from your tax payment or other third party administrators that charge you a fee, we’ve never billed our members a cent since 1972. Membership and all of the services are provided for free. How do we do it? The interest from our investment fund is used to cover our administrative costs, pay for all of the services and to keep our rates lower than the state.