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HOW DO MICHIGAN UNEMPLOYMENT INSURANCE AGENCY REGULATION CHANGES AFFECT YOUR BUSINESS?

July 1, 2013

Regulation changes from 2011-2013

As many Employers are aware the Unemployment Insurance Agency (referred to as UIA) has been changing how they do business from increased Tax Rates, such as the mandatory Obligation Assessment Rate and upcoming changes such as mandatory Online filing requirements. In this Blog we will explore a few of the changes made and how they may affect your business.

  1. 1)As a small business owner are you aware that the Forms for filing your Unemployment taxes had changed in the 3rd quarter of 2012? In late 2012 the UIA modified the Unemployment filing forms moving from 2 forms previously used the 1017 and 1020 to one inclusive Form 1028 to help consolidate and reduce penalties for non-reporting due to mailing or processing discrepancies. What you may not know is that the State also changed their system database that had been used to keep track of employers accounting for over 30 years. This of course did not go as smoothly as hoped and created a lot of problems including a 3% penalty on the 2012 and 2013 Unemployment Insurance Rates for non-reporting. If you feel that you may have suffered this penalty in error please click here to view the letter of apology from the UIA and the measures they took/are taking to resolve the issues.
  1. 2)Another modification that took place was the enforcement of the Obligation Assessment Rate. Please click here to view the letter dispersed by the UIA explaining what this is and how it will affectThis is a mandatory addition on top of your Employer UIA tax and can not be waived. This is structured on each individual Employers base rate so it may impact some companies worse than others.
  1. 3)Finally the changes that are being made now are to effectively have all Employers with 5 or fewer employee’s transitioned over to mandatory online processor’s by no later than 2015. This was effective beginning of 2013 for Employers that have 25 or more employees’ and is tiered over the next 2 years until all employers are REQUIRED to file online. For more information click here to review the UIA information offered on this

HOW DOES THIS IMPACT YOUR BUSINESS?

Most small businesses are owner managed or operated and unfortunately you as a business owner do not have time to stay on top of these sorts of changes in addition to trying to maintain some balance between focusing your energies on building your business and having quality down time which is very much needed. Not staying current on these and other issues can lead to penalties, interest, fines and liens. Please allow us to help you, as Payroll Professionals we stay on top of these ever changing items so that you do not have to. We are able to assist you in being in compliance which reduces the notices, interest and penalties and over paying on items that you should not be paying on. For more in-depth discussions regarding how our services may be of assistance to you please contact our office at 616-776-6457 or via e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it. to set up a free consultation.

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