Labor and Economic Opportunity
A Message From UIA Tax Director Darryl Hunter
Happy Thanksgiving! As the holidays are approaching, UIA will continue working hard to make sure you are all set for the New Year. For your convenience, we have listed important year-end dates and information in this newsletter. Please make sure that you file all missing reports and pay or make payment arrangements for all outstanding wage payments to avoid additional penalty fees and charges.
We have received numerous inquiries regarding how benefit payments are calculated as it relates to employer accounts. For a thorough review, please refer to Section 29(5) of the Michigan Employment Security Act or the UIA Employer Handbook.
Always review the accuracy of the following letters. If you immediately respond with discrepancies, your journey will be easier!
Finally, if you would like to suggest articles or topics for this newsletter or would like to nominate your company to participate in Michigan Employer Advisor Focus Group, please send a message to UIA-EmployerAdvisor@Michigan.gov.
Many employers inquire about whether they are responsible for paying unemployment benefit charges when an employee quits. Uncertainty arises when, in some cases, an employer receives a UIA Form 1575E (Monetary Determination) and discover the former employee has filed for benefits. Under some circumstances, benefits could potentially be paid from the employer's account.
When a worker becomes unemployed and files a claim for benefits, the UIA notifies the worker's last employer and each of the previous employers on the base period of the claim of potential charges to the online employer's account. The base period is defined as the first four of the last five calendar quarters prior to the employee's filing.
After a claim is filed, the employer in the base period will receive the UIA 1575E letter. This letter shows who filed for unemployment benefits, the reason they were separated from the employer and when their benefits begin.
All Employers should immediately review each UIA 1575E letter for accuracy. If the employer notices that the reason the employee left the job is inaccurate,
the employee did not work for the employer, the employee is still working full-time or any other conflicting information, it is important that the employer protests the determination by the due date written on the letter.
Weekly Statement of Benefit Charges
Additionally, employers receive a weekly letter titled UIA 1136 (Weekly Statement of Benefit Charges). This letter shows the claimant(s) receiving benefits under their account, if the claimant(s) are reporting any earnings, and what is being charged on the employer's account. Employers must review these letters to see if an active employee is reporting all their earnings accurately. If an employer recognizes any inaccuracies, they must file a protest immediately and within the allotted time.
When a protest is received because of inaccuracies on either letter, the UIA will request additional information from both parties. The employer will receive a UIA 1713 (Request for Information) letter. Employers are required to verify the claimant's employment status or will be asked to provide the claimant's weekly earnings for every week it is suspected they worked and collected benefits. An employer's failure to respond may result in overpayments not being properly identified and may have the potential to adversely impact the employer's Unemployment Insurance tax rate.
Important to remember
Employers must review all incoming letters from the agency to verify that the correct employees are filing for or receiving benefits, reporting their earnings, if applicable, and protesting those that are incorrect. Employer communication with UIA is essential to reduce and even prevent benefit overpayments and unnecessary charges to your UIA employer account.
November 24, 2021
Potential Tax Rate Increase Due to Missing Report(s) (Form UIA 1761) were mailed November 9th. Employers have 15 days to submit all missing report(s) to avoid a three percent non-reporting penalty added to your 2022 tax rate.
November 25-26, 2021
Offices will be closed both Thursday and Friday for the Thanksgiving holiday.
December 13, 2021 - January 3, 2022
December 30, 2021