Browsers that can not handle javascript will not be able to access some features of this site.
Skip Navigation
Unemployment Insurance AgencyMichigan.gov, Official Web Site for the State of Michigan
Michigan.gov Home UIA Home | Sitemap | Contact UIA | FAQ | Online Services
Printer Friendly Version Printer Friendly   Text Only Version Text Version Email this page Email Page
Michigan Receives Federal Grant To Fight SUTA Dumping

Grant Awards $112,035 to the Unemployment Insurance Agency

SEPTEMBER 16, 2005 – Michigan has received one of the largest grants offered by the U.S. Department of Labor (USDOL) to help states detect and prevent unemployment insurance (UI) tax rate maneuvers, known as SUTA Dumping.

“Michigan is receiving $112,035 to train staff and to implement specially developed software that will help us to eliminate tax plans that some employers are using to avoid paying their fair share of state unemployment taxes,” David Plawecki, a deputy director with Michigan’s Department of Labor & Economic Growth, reported.

SUTA (state unemployment tax act) Dumping typically occurs when a business transfers payroll out of an existing company or organization to a new or different organization solely or primarily to reduce their unemployment taxes.

SUTA Dumping is an escalating problem, costing the state’s unemployment insurance trust fund between $62 and $95 million a year in lost tax revenues.

“The federal grant will come to the Unemployment Insurance Agency (UIA) and will be used to integrate newly developed software, enabling us to identify employers who may be engaged in SUTA Dumping,” UIA Director Sharon Bommarito said.  “The money will also be used to further train agency staff who enforce the state’s anti-SUTA Dumping laws.”

Bommarito said the agency has already received the software and expects to have it operational within the next few weeks.

The USDOL had the software developed for all states to use.  The department also awarded nearly $5 million in grants to all 53 states and territories to help them with their SUTA Dumping detection and prevention efforts.  Ten states, including Michigan, received the top grant of $112,035.

Link to Department and Agencies Web Site Index
Link to Statewide Online Services Index
Link to Statewide Web-based Surveys
Link to RSS feeds available on this site
Related Content
 •  Unemployment Insurance Agency Issues $19 Million in Federal Jobless Benefits to Michigan Workers in First Week
 •  Beware of Websites that Charge Fees for Filing Unemployment Claims
 •  Stephen Geskey Named to Head Michigan's Unemployment Insurance Agency
 •  MICHIGAN'S UNEMPLOYMENT INSURANCE AGENCY OFFERS NEW PAYMENT OPTIONS
 •  The Unemployment check will no longer be in the mail: Unemployment benefits to be delivered through debit cards and by direct deposit
 •  The unemployment check will no longer be in the mail
 •  Changes Expand Federal Tax Credit Program for Employers
 •  Employers can earn federal tax credit for hiring workers from three U.P. counties
 •  Michigan's Unemployment Insurance Agency and IRS agree to share employment tax audit information Michigan the First State to Sign
 •  Unemployment Benefits Are Taxable State Of Michigan To Mail Out Jobless Benefit Statements For 2006
 •  Unemployment Insurance Agency Adopts Special Schedule For Filing Unemployment Claims By Phone During The Holidays
 •  Unemployment Insurance Agency Adopts Special Schedule For Filing Unemployment Claims By Phone During Veterans' Day Week
 •  Unemployment Program Helps Michigan Snag National and State IT Awards
 •  Two Michigan Employers Agree To Pay $35,400 In Unemployment Taxes They Avoided
 •  State To Hold Seminars For Employers About Suta Dumping
 •  State Of Michigan Assesses Two Companies $281,000 For Avoiding Unemployment Tax Payments
 •  State Holds Seminars For Employers About SUTA Dumping
 •  Unemployment Benefits Are Taxable
 •  Ex-State Employees Face Charges For Unemployment Fraud
 •  State Of Michigan Fines Consulting Firm For Advising Employer To Avoid Unemployment Taxes

Michigan.gov Home | DLEG Home
Accessibility Policy | Link Policy | Security Policy | Privacy Policy | Michigan News | Michigan.gov Survey

Copyright © 2001-2008 State of Michigan