About Taxes and UI for Employers

What is Michigan Unemployment Insurance (UI)?

Unemployment Insurance (UI) provides temporary financial support to workers who lose their jobs through no fault of their own. This helps workers replace some of their lost wages and benefits while they are actively searching for new employment. 

What should employers know about UI funding?

• In 2026, qualifying Michigan businesses will pay less in unemployment insurance taxes because the unemployment insurance Trust Fund balance was above $2.5 billion on June 30, 2025, and the following calendar quarter. To qualify, an employer must be in good standing and have submitted all quarterly tax reports with no missing or estimated reports. Also, an employer cannot be delinquent, which means they have an unpaid balance of $25 or more in tax, penalty or interest. Learn more about the Taxable Wage Base. 
• The Trust Fund’s status can be tracked using the UIA’s Economic Dashboard.
• For more information on how benefits are charged to employers, check out Fact Sheet 92.