Michigan Employer Advisor: October 2024

Annual UIA Review of Inactive Accounts Scheduled for November

Every year in November, the Michigan Unemployment Insurance Agency (UIA) reviews employer accounts and terminates the ones where there has not been any activity for 12 or more quarters.

Each employer whose accounts have been determined to be inactive will be notified of the pending account termination.

If an employer does not have payroll, then no action is required to be taken. If an employer has payroll but has failed to file the Quarterly Wage/Tax Report, then this is the time to file any missing reports and avoid an account deactivation.

Here's How Employers Can Claim Credit Account Balance Refund

In late September, the Michigan Unemployment Agency (UIA) mailed to employers who have a credit on their accounts Form 6306 Notice of Credit Balance.

UIA has an online process for employers to request their refund through their Michigan Web Account Manager (MIWAM) account. It’s the easiest and fastest way.

Here’s how to do it if you have access to MiWAM:

1. Log into your MiWAM account.

2. Click on UI Tax.

3. Click on the Account Services tab and then select Apply for Credits under the Account Maintenance section to complete the request.

4. Finally, click on “Submit”.

There is no need to use the manual process by completing Form 6306 Notice of Credit Balance to request a refund. Employers can use Form 6306 to request a refund if they do not have access to their MIWAM account.

If an employer is requesting the refund be sent to a different address, then Form 6306 must be signed by an authorized representative of the employer. 

If a business has closed and a different name is required on the refund check, provide a copy of incorporation paperwork naming you as the sole owner of the business. If the business has multiple owners, a notarized letter from each owner must be provided if the request is to issue the refund under one individual.

Now is the Time to File Missing Quarterly Reports Due to UIA

The Michigan Unemployment Insurance Agency (UIA) mailed on Sept. 17 a reminder to employers to file their Quarterly Wage/Tax reports.

Reports for the Third quarter of 2024 are due Oct. 25.

Form 1761 Potential Tax Rate Increase Due to Missing Report(s) was sent to employers missing a report for quarters ending between Sept. 30, 2023, and June 30, 2024. Failure to file these reports before the first week of December will result in an additional 3 percent increase to your 2025 tax rate and late filing penalties.

When to Report Taxes as an LLC Member or Partner LLP/PLLC

Member wages are not taxable for unemployment if an employer is registered with the State of Michigan as an LLC-Corporation, LLC-Partner, LLC-Individual, or LLP/PLLC.

The wages paid to members or partners are not taxable for unemployment taxes.

The Michigan Unemployment Insurance Agency (UIA) has measures to identify individuals who continue to report wages excluded from unemployment taxes. If it’s determined the individual is the sole employee but reported wages for a newly established account, the Employer Account Number (EAN) is inactivated, and the account status is also changed to non-liable employer.

The only way a member’s wages are taxable for unemployment is if the LLC is owned by a corporation.