Michigan Employer Advisor: February 2024

UIA Unveils Innovative Employer Help Center for Michigan Businesses

The Employer Help Center, an innovative resource that provides answers to employers on unemployment tax and claim issues, is now available from the Michigan Unemployment Insurance Agency (UIA). The one-stop online toolkit uses plain language and clean design to answer employer questions and explain UIA programs.

“The Employer Help Center will make it easier for employers of all sizes to understand their unemployment insurance responsibilities and learn about UIA programs that help businesses succeed,” UIA Director Julia Dale said. “This forward-thinking resource has been user tested by Michigan employers, who told us they are eager to use and share the tool. Especially popular is the use of plain language and clean design that saves them time searching for the information they need.”

There are six categories in the Employer Help Center that empower employers to easily navigate UIA resources:

1. Register Your Business: This category includes authorizing an account with UIA.
2. Manage Employee Claims: Explains how to handle disputes, fraud, and appeals.
3. Submit Reports and Payments: Tips on how to keep up with tax rates, quarterly reporting, and payments.
4. Manage Account Settings: How to set notifications, update business information, and add users.
5. Explore FAQs and Resources: Answers to common questions, helpful definitions, forms, and instructional resources.
6. Contact UIA: How to reach the Office of Employer Ombudsman (OEO) and other areas within UIA to address issues.

Since launching in early February, the Employer Help Center is the fifth most popular page on the UIA's public website with approximately 10,600 page views and roughly 8,100 users.

You can access the new resource at Michigan.gov/UIAEmployerHelpCenter.

Learn more about the Employer Help Center by reading our news release.

When Do Members of an LLC Have to Pay Unemployment Insurance Taxes?

Registered businesses in Michigan have an obligation to pay taxes that support the state’s unemployment insurance program. But what is often less clear for employers is whether wages earned by members of a Limited Liability Corporation (LLC) or Limited Liability Partnership (LLP) are taxable for unemployment.

The Office of Employer Ombudsman often hears these questions and there is no one-size-fits-all answer. Here are two scenarios that most employers have inquired about:

I am a member of a Limited Liability Company (LLC) or LLC-Corporation. Are my wages taxable for unemployment?

Your wages are taxable if your LLC is owned by a corporation. For example: ABC, LLC is owned by ABC, Inc. That means the officers or directors who perform services for the LLC or the corporation are employees and wage payments are taxable.

I am a member of an LLC and S-Corp or C-Corp for federal purposes, are my wages taxable?

No. If you are registered with the State of Michigan as an LLC Corporation, LLC Partner, LLC Individual, or LLP the wages paid to members are not taxable for unemployment taxes. This is because members who perform services for the LLC and LLP are not considered employees.

More information can be found on a UIA factsheet titled Summary of Unemployment Insurance Tax Treatment of Limited Liability Partnership (LLPs) and Limited Liability Companies (LLCs) under the Michigan Employment Security Act.