For accounts with one and two years of liability: Generally, in the first two years of a business's liability, the tax rate is set by law at 2.7%. Note: There is an exception for employers in the construction industry, whose rate in the first two years is that of the average employer in the construction industry, which is announced by UIA early each year. In recent years the average construction rate is from 5.3% to 8.1%. For accounts established after 2013 with three or more years of liability: The tax rate is made up of three components (ABC, NBC and CBC) which are computed separately and then added together to figure the yearly tax rate. For accounts established before 2012 with five or more years of liability: In their fifth year of liability, the tax rate is made up of three components (ABC, NBC and CBC) which are computed separately and then added together to figure the yearly tax rate. You can view your current tax rates in MiWAM: Log in to your MiWAM account and go to “Recent Items” to view your Form UIA 1771 under "All Letters." Here you can review your tax rate and your history.

SUTA stands for the State Unemployment Tax Act, a state law requiring employers to pay a state tax on employee wages to fund unemployment benefits. State unemployment taxes paid by employers to the UIA are used only for the payment of unemployment benefits to Michigan workers.

Tax Rates and Liability

How is my tax rate calculated?

The tax rate is a combination of Account Building Component (ABC), Non-chargeable Benefits Component (NBC) and Chargeable Benefits Component (CBC).

What may increase the tax rate:

If you have benefits charges
If your payroll increases in the computation period
If you have a negative reserve (paid more for benefits than we've collected in tax)
If you have missing report(s) in the computation period (non-reporting penalty is added to the tax rate).

I don't have employees anymore - why am I receiving a bill?

If you no longer have employees, you must notify the Unemployment Insurance of your change in payroll by completing the Notice of Change (Form 1772). This form is found at www.michigan.gov/uia in the forms section and mail or fax the document. Or you may complete the Notice of Change form in your MiWAM account.

What do I do if I disagree with my tax rate?

You can log into the MIWAM account and select tax protest. Please make sure that you complete all necessary information to be considered in the review of your account.

What happens to state unemployment tax payments?

These regular and extended benefit payments are usually charged to the employer's account. However, in most cases, if a claimant was disqualified for benefits when he or she left work, and then requalifies and is paid benefits, the benefits will not be charged to the employer's account.

What is a voluntary payment? Can I download the voluntary payment worksheet?

Some businesses can choose to pay extra money to lower their future unemployment taxes. This is called a voluntary payment. The Voluntary Payment Worksheet helps them figure out how much they need to pay.

What is my tax rate?

For accounts with one and two years of liability:

Generally, in the first two years of a business's liability, the tax rate is set by law at 2.7%.
Note: There is an exception for employers in the construction industry, whose rate in the first two years is that of the average employer in the construction industry, which is announced by UIA early each year. In recent years the average construction rate is from 5.3% to 8.1%.

For accounts established after 2013 with three or more years of liability:

The tax rate is made up of three components (ABC, NBC and CBC) which are computed separately and then added together to figure the yearly tax rate.

For accounts established before 2012 with five or more years of liability:

In their fifth year of liability, the tax rate is made up of three components (ABC, NBC and CBC) which are computed separately and then added together to figure the yearly tax rate.

You can view your current tax rates in MiWAM: Log in to your MiWAM account and go to “Recent Items” to view your Form UIA 1771 under "All Letters." Here you can review your tax rate and your history.

What is the computation period?

The computation period covers the 3rd, 4th, 1st, & 2nd quarters.

For instance, the computation period for the 2023 rate year will cover

3rd & 4th qtrs. 2021
1st & 2nd qtrs. 2022

The wages & contributions along with benefit charges are used to compute your Tax Rate.

Your tax rate is in effect from 1/1 to 12/31 (all quarters in the calendar year).

What is the tax rate for new employers in Michigan?

The tax rate for all new employers except certain construction companies involved in large projects is 2.7%. That rate is paid on the first $9,000 (for qualified employers) of wages during the calendar year for each employee. The MES Act provides for a reduced taxable wage base if the UIA Trust Fund balance reaches or exceeds $2.5B on June 30 of the prior year and is forecast to remain above $2.5 billion for the following quarter.

What's SUTA?

SUTA stands for the State Unemployment Tax Act, a state law requiring employers to pay a state tax on employee wages to fund unemployment benefits.

State unemployment taxes paid by employers to the UIA are used only for the payment of unemployment benefits to Michigan workers.

When are employers required to file quarterly wage/tax report listing employees and wages earned?

The quarterly reports are due the 25th of the month it is due. Below they are outlined. Reports and payments not submitted timely result in penalties. After the due date there is a $55 non-reporting penalty that will be assessed to the account. If the 25th is a weekend the reports are due the Monday after the 25th.

For step-by-step instructions on how to use MiWAM, including how to file your Employer’s Quarterly Wage/Tax Report or make a payment, view the MiWAM Toolkit for employers.

Quarter	Due Date
First Quarter	April 25
Second Quarter	July 25
Third Quarter	October 25
Fourth Quarter	January 25

Why did I receive an 1190 Liability Notice?

This letter is received when the registration process is incomplete, and the Agency is requesting new or additional information to complete the registration process.

Can I pay my taxes with my credit card?

You cannot pay by credit card. However, you can pay by mail and MiWAM with an electronic check. Learn more in the Employer Help Center.

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Tax Rates and Liability