Michigan Unemployment Taxes For a contributing employer in 2012, the Michigan unemployment tax is determined by multiplying the first $9,500 of each covered employee's wages paid each calendar year, by the employer's own unemployment tax rate (up from $9,000 in 2011). Each calendar quarter, the employer will receive a Form UIA 1020, "Employer's Quarterly Tax Report" that requests information about payroll for the calendar quarter.
The form reminds the employer of the tax rate for that year, and requests payment of the tax on each employee who had not yet reached the $9,500 limit for the current year. It also asks for the total wages paid in the quarter on all employees, even if they have reached the $9,500 limit.
For additional information visit the Unemployment Insurance Taxes page on the State's website.
Michigan UIA Credit
Contributing employers with positive experience account balances can now apply for the Michigan Tax Credit. Michigan law provides that the credit will be either 50% of the additional FUTA tax paid by the employer for the previous year or the employer's taxable wages for the previous calendar year multiplied by the Nonchargeable Benefits Componet (NBC) of the employer's unemployment tax rate for that year, whichever is the lesser amount.
You can apply for the credit through the UIA Employer Web Account Manager (EWAM) or by completing Form UIA 1110, Application for Michigan Unemployment Tax Credit.
More information about the credit can be found in the Winter 2011 Michigan Employer Advisor or Fact Sheet 130.
A webcast on how to complete Form UIA 1110 is also available.
Information and links courtesy of State of Michigan Unemployment Insurance Agency. |
