Michigan 2010 FUTA Tax Credit If You Meet These Qualifications
Michigan employers with a positive account balance, who were subject to the FUTA tax increase of 0.3% in 2009, can receive a tax credit for 2010. The credit amount will be either 50% of the additional FUTA tax paid by the employer or the employer’s taxable wages for the previous calendar year multiplied by the non-chargeable benefits component (NBC) of the employer’s unemployment tax rate for that year, whichever is the lesser amount.
What Employers Need to Know
To qualify for this credit employers must meet all the following requirements:
• A contributing employer has applied for the state tax credit and has paid Michigan unemployment taxes for five years or more and has a tax rate for the year of the Michigan tax credit.
• Has a positive reserve balance in its experience account as of June 30th of the previous year.
• Has filed all required quarterly tax reports for the year prior to the year of the credit
• Has paid the additional FUTA taxes on IRS form 940 no later the December 31, 2010.
• Has paid its FUTA taxes prior to submitting the Michigan Tax Credit application.
• Has certified the amount of additional 2009 FUTA taxes paid when it applies for
Employers can apply for this credit through the UIA Employer Web Account Manager (EWAM) at www.michigan.gov/uia or by completing Form UIA 1110, “Application for Michigan Unemployment Tax Credit”. Both application options will be available soon. The credit can be used against your Michigan unemployment liability beginning in the quarter ending 6/30/2010.
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