Unemployment Insurance Taxes
• Purpose of this overview
• What is Unemployment Insurance?
• Employers pay either contributions (taxes) or reimbursements
• Who is required to pay unemployment insurance taxes?
• Which employees are covered by Unemployment Insurance?
• How much is the Unemployment Insurance Tax?
• How is the unemployment tax rate computed?
• Chargeable Benefits Component (CBC)
• Nonchargeable Benefits Component(NBC)
• Account Building Component (ABC)
• Across-the-Board Tax Reduction
• What is the tax rate when a new owner acquires an existing business, or businesses merge?
• Unemployment taxes under the Federal Unemployment Tax Act (FUTA)
• What happens to state and federal unemployment tax payments?
• Notification of state unemployment tax
• How and when to pay your unemployment taxes
• Effect of Missing Tax Report(s)
• Protest/Appeal Rights
• Tax Office Contacts
• Sample calculations
• What address should employers use to submit their tax reports and payments?
Employer Tax Credits
• Work Opportunity Tax Credit Program
• Michigan Unemployment Tax Credit
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