The unemployment insurance program is operated on general insurance principles wherein the employer pays the premium, with the exception of the reimbursable employers who are self-insured and, therefore, reimburse the Department for benefits actually paid to former employees.
Government units and nonprofit organizations pay contributions into the Utah Unemployment Compensation Fund (Trust Fund) based upon payroll wages in the same manner as contributory employers, unless they elect to become reimbursable employers which are liable for payments in lieu of contributions. The terms "liable for payments in lieu of contributions" as referred to in the Act and "liable for benefits paid" as used in this handbook have the same meaning. Therefore, government units and nonprofit organizations which elect to become a reimbursable employer pay to the Department an amount equal to the benefits paid to former employees. These payments are due and payable monthly. Nonprofit and government employers do not currently pay for any administrative expenses of the unemployment insurance program.