Labor and Economic Opportunity
A Message from UIA Tax Director Darryl Hunter
It's the Fourth Quarter of 2021 already! Please try to remember that your Quarterly Wage/Tax Report and applicable payments are due on Monday, Oct. 25, 2021. For faster service, please submit your payments directly into your Michigan Web Account Manager (MIWAM) account right away. Thanks to all of you, Michigan's unemployment levels are below 4.7 percent as of August 2021 and below the national average. These numbers appear to be improving in our final quarter of 2021. We have some helpful tips in this newsletter that may help you find good quality employees to make your business better!
If you would like to suggest articles or new subjects for this newsletter or would like to nominate your company to participate in the Michigan Employer Advisor Focus Group, please send us a message to UIA-EmployerAdvisor@Michigan.gov.
It's a great time for employers to hire new talent as Michiganders return to work. The Work Opportunity Tax Credit (WOTC) is the perfect incentive to hire from some of Michigan's disadvantaged and hardworking population.
The WOTC program offers Michigan employers a federal tax credit ranging from $2,400 to $9,600 per employee during the first year of employment. When you hire certified employees within a target group, you will receive the WOTC credit as a general business tax credit against income taxes and tax-exempt employers can claim WOTC credits against your payroll taxes.
The WOTC targeted groups are:
The Federal Bonding Program provides no cost fidelity bonds to employers for returning citizens and other hard-to-place job applicants who face barriers toward employment. The program covers any person hired who is an ex-offender with a record of arrest, conviction or imprisonment; anyone who has ever been on parole or probation; and/or anyone who has a police record. For more information, contact the Fidelity Bonding Program, call (313) 410-9498 or visit your local Michigan Works! Agency service center.
The Employee Retention Credit is a quarterly tax credit against an employer's share of certain payroll taxes. The tax credit is 70 percent of the first $10,000 in wages per employee in each quarter of 2021. The Internal Revenue Service urges employers to take advantage of the newly extended employee retention credit, which is designed to make it easier for businesses that, despite challenges posed by COVID-19, choose to keep their employees on the payroll. But hurry, this program is only for a limited time. For more information, visit the IRS's Employee Retention Credit Website.
Many employers question excessive fees, penalties and interest charging to their account. Sometimes, these fees are thousands of dollars more than the simple quarterly wage tax.
One reason for fees is missing quarterly reports. Another is incorrect Social Security numbers on the Employer Quarterly Wage/Tax report. Uncorrected errors may cause penalty and interest charges to accrue on the employer account. For instance, a $50 wage penalty will be charged for each report that is not filed within 30 days of the due date. An additional $250 wage penalty will be charged for each subsequent quarter that the Quarterly Wage/Tax Report is not filed or contains uncorrected errors such as a wrong SSN.
Additionally, uncorrected SSN errors delay or prevent the UIA from issuing unemployment benefits to employees who are laid off.
Employers should verify employee Social Security numbers through the Social Security Number Verification System.
All Unemployment Insurance liable employers should be aware of their responsibility and financial obligations with UIA such as filing wage reports, submitting payments and receiving and reviewing correspondence sent by UIA.
This is your right and responsibility regardless of whether or not a third-party administrator (TPA) or a power of attorney (POA) is acting on your behalf. You are responsible for your TPA's actions and inactions with the agency.
UIA strongly encourages employers to set-up periodic reviews and monitor your own access to your MIWAM account. Many times, employers delegate these duties to a TPA without access themselves. Legal responsibility remains with the employer for any missing reports, accumulating penalties, fees, and outstanding debt, even if you have hired a TPA. You, the employer, must have master access, not limited access, to your MiWAM account: It's important that you always have the ability to:
For more instruction or additional information, please refer to the MIWAM Toolkit for Employers or contact the Office of Employer Ombudsman at 1 (855) 484-2636.
Failing to remove a previous TPA or POA is a common occurence and it could be dangerous. Identify your current TPA or POA and immediately remove their access when your teminate their contract. Otherwise, a former representative will have access to our account and can adjust your account without your knowledge. It is your responsibility to remove all former TPAs or POAs access to your account and add a new representative. Remember, UIA cannot remove or add representatives to your account.