What is the self-insurance or “reimbursement” option?
The law provides state and local government, certain nonprofit employers (those who are exempt under Section 501(c)(3) of the Internal Revenue Code), and Indian Tribes an option to pay quarterly taxes, or they may elect to be self-insured under the “reimbursement” method. If the “reimbursement method is chosen, the employer must file quarterly wage reports, but does not pay quarterly taxes for unemployment, nor for the Career Enhancement Program (CEP). When choosing the “reimbursement” method, instead of paying quarterly taxes, an employer must reimburse the state on a quarterly basis for all unemployment benefits charged to his account. The Employment Security Division administers all claims for reimbursement employments in the same manner as for tax paying employers. If an employer elects the “reimbursement” method, he cannot change back to the taxing method for at least two calendar years, and must notify the division no later than December 1, to be effective for the following calen
