Barnett Associates, a key strategic Walton partner and expert in Unemployment Cost Control provides update regarding Michigan taxable wage base for 2015.
Beginning with the third quarter of 2015, the Taxable Wage Base (TWB) — the maximum annual wage on which an employer must pay unemployment taxes — will be lowered from the current rate of $9,500 to $9,000. This means that non-delinquent contributing employers will pay less in unemployment taxes for the upcoming quarters.
In 2011, measures were taken by Michigan’s legislature that aimed to ensure adequate funding for the state Unemployment Trust Fund. The legislation specified that when the UI Trust Fund balance reaches $2.5 billion, and is expected to return there for two consecutive quarters, the TWB would automatically decrease to $9,000. As of July 27, 2015, this condition has been met.
The new rate of $9,000 will apply to all employers who pay unemployment taxes and who are not delinquent in the payment of unemployment contributions, penalties, or interest. An employer is delinquent if on August 15th, the employer has an outstanding assessment for an unpaid balance of at least $25.