Beginning with the third quarter 2015 filing, Michigan’s Taxable Wage Base will lower from $9,500 to $9,000. Because of this lower base, most non-delinquent contributing employers will end up paying less in unemployment for upcoming quarters. There will be no refunds for first and second quarter taxes paid at the higher taxable wage base.
Reimbursing employers and employers delinquent in payment of unemployment contributions, penalties, or interest as of August 15, 2015 are not eligible to receive the lowered taxable wage base. To determine if you are delinquent, check your MiWAM account. The balance needs to be paid in full and credited to your account by August 15 to qualify for the lower base.
The UIA system will automatically be programmed to your correct taxable wage base amount for the third quarter filing. Be sure to download any updates available for your payroll software before any third quarter taxes are processed. If you are a third party payroll provider, you will need to make internal programming changes for the employers qualifying for this lower taxable wage base.
The taxable wage base was increased by legislation to $9,500 in 2011 to ensure adequate funding for the Unemployment Trust Fund. The condition to again lower the wage base specified a UI Trust Fund balance reaching $2.5 billion with an expectation it would remain for two consecutive quarters. This condition has been met as of July 27, 2015.