Good news! The Michigan Unemployment Insurance Agency (UIA) recently announced that employers may be eligible for a lower taxable wage base (TWB) for the third quarter of 2015.
The TWB is the annual amount of wages paid by an employer to an employee that are subject to state unemployment insurance (UI) taxes. To determine an employer’s yearly unemployment tax, the wages of each covered worker (up to the TWB) is multiplied by the employer’s annual unemployment tax rate.
The tax reduction is expected due to legislation championed by the Michigan Chamber in 2011. This legislation specified that when the UI Trust Fund (TF) balance reaches $2.5 billion, and is expected to remain there for two quarters, the TWB would automatically reduce to $9,000. This change was intended to ensure adequate funding in the TF (the account that pays benefits to unemployed workers) while keeping employers' taxes as low as possible.
The UIA projects that the TWB for non-delinquent contributing employers will be lowered to $9,000 for the third quarter of 2015; however, they are still awaiting additional State and federal data before official notices can be sent to employers. Once the final determination has been made, employers can expect a letter from the UIA (via their MiWAM account).
We will keep you updated on this important issue. Please contact Wendy Block at (517) 371-7678 or email@example.com with any questions.