The Michigan business community is getting another solid measure of the state of our economic bounceback in Michigan — a decrease of the unemployment insurance tax rate on business.
Wanda Stokes is Director of the Talent Investment Agency (TIA) in Michigan. She has announced today the unemployment insurance tax rates are projected to drop an average 4.5-percent for businesses in Michigan.
There’s more good news from Stokes, as well, as she reports that the bonds that were issued in 2012, to provide money for the unprecedented increase in unemployment claims filed during the most recent recession, are projected to be paid earlier than expected. She says that thanks to responsible management of the Unemployment Trust Fund, as well as active participation by employers, the bonds should be paid in full by July 2020.
Stokes reports, “These numbers show the comeback of Michigan’s economy,” adding, “We have made tremendous strides that will benefit everyone.”
The unemployment insurance program provides temporary assistance to individuals who are unemployed while they return to work. That allows Michiganders to continue supporting their families and retains a skilled workforce for Michigan employers. Job providers pay a state unemployment tax into the Unemployment Trust Fund. It is that fund that is used solely to pay unemployment benefits to eligible unemployed individuals.
Stokes says today, “The average employer is projected to pay an estimated $403.20 per employee toward state unemployment tax and the Obligation Assessment during 2018.” That’s great news inasmuch as, “This is 4.5-percent less than the average liability of approximately $422.10 during 2017.”
Stokes contends that the primary goal of an individual collecting unemployment benefits is to return to work. TIA works closely with the local MichiganWorks! offices and other entities to facilitate that transition. As of June 2017, the average individual collected 12.2 weeks of benefits before returning to work, ranking 8th lowest in the nation. When you compare that to 10 years ago, the average individual was collecting 14.7 weeks of benefits, marking substantive progress.
The taxable wage base is the employer’s payment of state unemployment tax generally on the first $9,000 that each employee earns. Employers that are delinquent on their unemployment account may have a taxable wage base of $9,500.
Employers with questions are encouraged to contact authorities at https://miwam.unemployment.state.mi.us or at the Office of Employer Ombudsman 855-4UIAOEO (1-855-484-2636) for answers.
TIA is the agency that combines Michigan Unemployment Insurance and Workforce Development, and is responsible for their activities. Stokes points out that businesses need a talented workforce, and workers need the right skills to compete for available jobs. TIA programs are focused on job preparedness, career-based education, worker training, employment assistance and unemployment insurance.
