Michigan Taxable Wage Base Decreases
Beginning with the third quarter of 2015, the annual wage on which an employer must pay unemployment taxes will be lowered from the current rate of $9,500 to $9,000. The new rate of $9,000 will apply to all employers who pay unemployment taxes and who are not delinquent in the payment of unemployment contributions, penalties, or interest.
This tax reduction is the result of legislation which specified that when the UI Trust Fund balance reaches $2.5 billion, and is expected to remain there for two quarters, the taxable wage base would automatically reduce to $9,000. This change was intended to ensure adequate funding in the Trust Fund while keeping employers’ taxes as low as possible.
This wage base change applies only to contributing employers who are not delinquent. Reimbursing employers are excluded. Additionally, contributing employers who are delinquent in the payment of unemployment contributions, penalties, or interest are also excluded.
However, if an employer is delinquent, and still wants to benefit from the taxable wage base reduction, they must pay off their balance on or before August 15, 2015. Employers must keep in mind that if the Trust Fund balance falls or is projected to fall below $2.5 billion dollars, the taxable wage base limit will increase back to $9,500.
To establish if your account is considered delinquent, you can check your MiWAM account. If your account is considered delinquent, payments may be made either electronically, through MiWAM, or by check to the UIA. Write your UIA Account Number on your check and mail to: 3024 W. Grand Blvd., Suite 12-600, Detroit, MI 48202. If mailing a check, keep in mind payment must be received and processed prior to the August 15, 2015 deadline.
If you have any questions, please contact the UIA’s Office of Employer Ombudsman at 855-4-UIAOEO.
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