The Michigan Unemployment Insurance Agency has announced a reduction of its unemployment taxes due to a $500 reduction in the state’s Taxable Wage Base to $9,000. This reduction equates to almost $16 million less in assessments this for 2015, and a further $57 million if the base remains constant through 2016. The cut comes as a result of 2011 legislation that capped the state’s Unemployment Trust Fund at $2.5 billion.
“This is great news for job providers, families and our entire economy,” said Gov. Rick Snyder. “When businesses can save money on their taxes it can mean retaining jobs, expanded opportunities and even the hiring of more employees.”
The Taxable Wage Base is the annual amount of wages paid by an employer to an employee that are subject to state unemployment insurance taxes. These contributions fund unemployment benefits for employees who lose their jobs through no fault of their own.
The new Taxable Wage Base rate of $9,000 applies to contributing employers who pay unemployment taxes and who are not delinquent in paying unemployment contributions, penalties or interest.