15% of Michigan employers face additional unemployment tax — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

15% of Michigan employers face additional unemployment tax

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in Employee Benefits Program,Human Resources

Plummeting unemployment insurance funds and rising state debt will likely trigger a “solvency tax” on many Michigan employers beginning in January, the Michigan Unemployment Insurance Agency (UIA) said.
 
The state owes $376 million of the $1 billion it had borrowed from the U.S. Department of Labor to cover unemployment payments since 2006.
 
The debts triggered a state law requiring “negative-balance” employers to pay a quarterly tax of up to $67.50 per employee. Negative-balance employers are those whose workers have drawn more in unemployment benefits than the employer has paid into the system.
 
Roughly 34,000 employers, or 15% of all employers in the state, will owe the tax, according to Norm Isolato, Michigan UIA spokesman. In addition, all employers in the state will probably see an increase of $21 per employee per quarter beginning in January 2010, Isolato said. 
 

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