The Unemployment Insurance Agency (UIA) uses the information to determine how much the workers are entitled to receive in jobless benefits, if they become unemployed and are otherwise eligible.

Previously, Michigan used a wage request system, which asked employers to provide weekly wage and separation information whenever a former employee filed a claim for jobless benefits.

Jobless workers to immediately know their benefit check amount.

Wage record tells unemployed workers immediately upon filing their claims how much and for how long they may receive unemployment benefits. With the wage request system they had to wait up to 14 days (or sometimes weeks) to learn the amount of their benefit check. Wage record also allows jobless workers to immediately alert UIA to any potential errors in their earnings, as reported by the employer. This will save the UI system from making potential benefit payment errors, while ensuring that the unemployed receive the correct check amount.

Wage record is benefit payment and tax collection neutral.

The wage record system does not increase or decrease the total amount of unemployment benefits paid or the unemployment taxes collected. Michigan's wage record legislation designed the system to be revenue and benefit neutral from the perspective of the state's UI trust fund. Jobless workers and employers may, however, see some changes in their individual benefits or taxes.

Major changes made to Michigan's Ul law.

Some provisions in the state's UI law have undergone major changes. Among the more significant changes are the following:

• Base Period: The wage record base period is the first four of the last five completed calendar quarters. If a person is unable to qualify on that basis, then the last four completed quarters are considered. Previously, the base period was the 52 weeks preceding the filing for benefits, and jobless workers qualified on the basis of their base period employment and earnings.
  
  
• Qualifying wage: Wage record uses total wages paid in the base period, rather than the wage request minimum of 20 credit weeks. With wage record, a person must receive at least one and a half times the high quarter wages in four quarters to qualify. The high quarter wages requirement is:
  • $1,998 for benefit years beginning prior to 4/1/2007
  • $2,697 for benefit years beginning 4/1/2007 through 1/5/2008
  • $2,774 bor benefit years beginning 1/6/2008 through 1/3/2009
  • $2,871 for benefit years beginning on or after 1/4/2009

The Alternate Earnings Qualifier (AEQ) continues as an alternate means of qualifying; but wages must have been paid in at least two calendar quarters.

• Weekly benefit amount: Wage record calculates the weekly benefit amount at 4.1% of wages paid in the high quarter plus $6 per dependent (up to five dependents are allowed) with the current maximum of $362 per week. In the past, benefits were based on 67% of after-tax earnings.
  
  
• Benefit duration: Wage record uses 40% of base period wages divided by the weekly benefit amount to determine the number of weeks to which an unemployed worker is entitled. The maximum remains 26 weeks and the minimum is 14 weeks. Benefit duration was previously calculated by multiplying the number of credit weeks in the base period by 75%, subject to a maximum entitlement of 26 weeks.
  
  
• Benefit charging: Generally, if the last employer has paid the unemployed worker wages totaling 7 times the weekly benefit rate or 40 times the state minimum wage, that employer is charged for the first two weeks of benefits and base period employers are charged proportionately for any remaining benefit payments.
  • For benefit years beginning prior to 4/1/2007, 40 times the state minimum wage ($5.15) is $1,442.
  • For benefit years beginning 4/1/2007 through 1/5/2008, 40 times the state minimum wage ($6.95) is $1,946.
  • For benefit years beginning 1/6/2008 through 1/3/2009, 40 times the state minimum wage ($7.15) is $2,002.
  • For benefit years beginning on or after 1/4/2009, 40 times the state minimum wage ($7.40) is $2,072.

• Adjudication: For the purpose of paying benefits, if the last employer has paid an amount that satisfies any rework requirement (12 times the weekly benefit amount for a prior voluntary leaving issue or 17 times the weekly benefit amount for a prior discharge), and the employee is not disqualified , then no adjudication on any prior separations is necessary, unless there are major disqualification issues such as assault and battery.