Reimbursable Method of Paying Unemployment Insurance (UI) Benefits
Public entities and nonprofit organizations, described under Section 501(c)(3) of the Internal Revenue Code, may elect to use the reimbursable method of paying for Unemployment Insurance (UI) benefits.
About the Reimbursable Method
Employers electing 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 employers, financing under the reimbursable method must remain in effect for two complete calendar years. For nonprofit employers, financing under the reimbursable method must remain in effect for five complete calendar years. Employers who terminate their reimbursable coverage remain liable for UI benefits paid to their former employees covered under this program for a period of three calendar years.
Use e-Services for Business to register for your employer payroll tax account number and be prepared to attach any applicable supporting documentation. e-Services for Business is your fast, easy, and secure way to manage your employer payroll tax account online 24 hours a day, 7 days a week.
For more registration information, visit one of the following:
Reimbursable employers are sent the Statement of Reimbursable Benefit Charges (DE 428R) each quarter to notify them of UI benefits paid to their former employees. A Notice of Amount Due (DE 6601) and a Statement 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 using e-Services for Business.
APPROPRIATE MAIL DATES FOR THE DE 428R, DE 6601 and DE 2176:
|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|
- 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 231NP – Information Sheet: Nonprofit and/or Public Entities
- DE 1378F – Potential Liability for Unemployment Insurance Benefits When Electing the Reimbursable 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