Most Michigan businesses will pay less in unemployment insurance taxes in 2025, the Michigan Unemployment Insurance Agency (UIA) announced Wednesday.
Effective Jan. 1, registered employers who are current with their filings to UIA will be taxed on a smaller portion of the wages they pay to employees, called a taxable wage base. When calculating first quarter payments, due April 25, qualified employers will be taxed on the first $9,000 in wages per employee. That is a $500 reduction in the current taxable wage base of $9,500, which has been in place since 2021.
“Michigan’s strong, sustained economic growth has resulted in healthy payments into the Trust Fund,” said UIA Director Julia Dale. “Coming out of the pandemic, Gov. Whitmer has implemented policies that have benefited businesses across the state.
Projections show the Trust Fund will continue to be strong for the foreseeable future and now is the right time to provide tax relief to large and small businesses that are part of the state’s robust business community.”
The lower taxable wage base is triggered when the unemployment insurance Trust Fund balance is at or above $2.5 billion on June 30 and the next calendar quarter. The Trust Fund’s status can be tracked using the UIA Economic Dashboard.
Taxes collected from employers are deposited into the Trust Fund. Unemployed workers who qualify for benefits receive payments that are drawn from the Trust Fund.
To qualify for the reduction, an employer must have completed and submitted all required quarterly tax reports and cannot be considered delinquent, which means they have an unpaid balance of $25 or more in tax, penalty or interest.
In February, delinquent employers will be sent Form 6354, Notice of $9500 Taxable Wage Base to remind them to file any missing report and/or pay an outstanding balance. Delinquent employers have 14 days to fix outstanding issues with their account to qualify for the reduction.
Additional information about the taxable wage base can be found at Michigan.gov/UIA.
UIA reminds employers who have 100 or fewer employees that they can participate in the apportionment program to spread out their first-quarter tax payments, which are usually the largest, over all four quarters of the year. Sign up for the program by clicking on the apportionment button when filing First Quarter reports using the Michigan Web Account Manager (MiWAM).
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