Reimbursable Method of Paying Unemployment Insurance (UI) Benefits

Understand the reimbursable method of paying Unemployment Insurance (UI) benefits available to public entities and nonprofit organizations. 

Public entities and nonprofit organizations, described under Section 501(c)(3) of the IRS 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 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 end their reimbursable coverage remain liable for UI benefits paid to their former employees covered under this program for a period of three calendar years.

e-Services for Business is your fasteasy, and secure way to manage your employer payroll tax account online 24 hours a day, 7 days a week.

Use e-Services for Business to 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

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.

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

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 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

Get answers to frequently asked questions (FAQs) related to UI and the reimbursable method of paying UI benefits.

e-Services for Business

Use e-Services for Business to manage your employer payroll tax account online.

Contact Us

If you have questions, Contact Payroll Taxes. You can also contact the Taxpayer Assistance Center at 1-888-745-3886 or visit your local Employment Tax Office.

Last Revised: 04/27/2022