Good News! Michigan businesses are expected to see an unemployment insurance (UI) tax reduction in 2018, thanks to comprehensive reforms pushed by the Michigan Chamber in 2011. The state estimates unemployment insurance tax rates will decrease by an average of 4.5 percent in 2018. Further tax relief is expected in July of 2020.
During the last economic downturn, Michigan’s UI system amassed a nearly $4 billion debt with the federal government to pay benefits. The state bonded for this debt, which led to employers needing to shoulder higher UI taxes, or an “Obligation Assessment,” to repay the debt services on the bond. The 10-bond was expected to be repaid in 2022 but is now expected to be repaid much earlier, allowing the state to remove the Obligation Assessment from employers’ tax bills in 2020.
For more information, contact Wendy Block at email@example.com.