Michigan Employers May Realize a UIA Tax Credit
The State of Michigan Unemployment Insurance Agency (UIA-formerly MESC) will issue a state tax credit to employers who have a positive balance on their account. The credit will amount to either 50% of the additional FUTA tax the employer paid for the previous year or a calculation based on previous year wages – whichever is less.
To qualify for this UIA tax credit the employer needs to meet all the following requirements:
- Be a contributing employer which has applied for the state tax credit and has paid MI unemployment taxes for five years or more and has a tax rate for 2011.
- Has a positive reserve ending balance in its unemployment experience account as of June 30, 2010.
- Has filed all quarterly tax reports for the year 2010.
- Has paid the additional .6% FUTA tax on their IRS Form 940.
This state tax credit may be applied for online or by completing paper Form UIA 1110.
Recent Comments