September 3, 2020
This week, HB 6136 (Hall) was introduced to prevent an automatic increase in unemployment taxes for Michigan job providers.
Michigan law currently prescribes that an automatic increase in the taxable wage base -part of the formula that determines how much unemployment taxes an employer must pay- will occur if the Unemployment Compensation Fund falls below $2.5 billion.
The taxable wage base for 2020 is $9,000, but according to news reports, the balance in the Unemployment Compensation Fund was below $2.5 billion on June 30, 2020, and it is projected to stay below that amount in the next quarter. Under current law this will trigger the increase of the taxable wage base to $9,500 for 2021, and thus increase taxes on employers.
HB 6136 would amend the law so that during declared states of emergency where businesses are forced to close, the automatic increase in the taxable wage base would not apply.
The Michigan Chamber supports the bill and pushed for quick action after introduction. Thankfully, the bill was taken up in the House Commerce and Tourism Committee yesterday where the Chamber voiced their support for the legislation. Tremendous opposition to the legislation was raised by organized labor.
For more information on this legislation, please contact Wendy Block at wblock@michamber.com