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Employer Field Audits

Employer Field Audits

What is the purpose of an audit?

Audits of Michigan employers help support the Unemployment Insurance (UI) Tax Program by verifying an employer is following the Michigan Employment Security Act (MES Act) and Administrative Rules. The Michigan Unemployment Insurance Agency’s more than 25 auditors are the gatekeepers to the UI tax system.

There are three main purposes of an audit:

  1. To ensure wages are properly reported by the employer to the UIA.
  2. To determine whether workers are misclassified as employees or independent contractors and look for hidden or unreported wages.
  3. To educate the employer community about how to comply with state and federal laws.

In 2025, UIA auditors conducted 2,579 employer audits, discovered 12,139 misclassified workers, and audited over $3 billion in wages. 

Step One
Notification of Audit

Notification will be by phone or email to confirm the appointment, date, time and location as well as how to contact the auditor.

If selected for an in-person audit:
It will be conducted where the records are available (for example a business’ office, accountant’s office, or office of a designated business attorney). A sufficient and quiet workspace must be provided.

If selected for electronic audit:
Documents can be securely uploaded using MiUI.

Step two
Designate a Representative to Participate With the Audit

If a business owner or officer chooses to not participate they must complete and sign an Employer Representative Audit Authorization Form by email or through MiWAM before the audit begins.

The designated representative can be an accountant, attorney, or office manager. They must be authorized to work with the auditor, have knowledge of the business’ structure and records, and empowered to act on the business’ behalf.

Step three
During the Audit

For an in-person audit, the owner, officer or designated representative must be available to answer questions that come up or more documents are needed.

For an e-audit, the owner, officer or designated representative should frequently review their preferred method of communication with the auditor (such as email), to answer questions or requests for additional documentation.

Step four
Completing the Audit

The auditor will send a Post Audit Discussion email with findings and will provide the Post Audit Acknowledgement Form (PAA).

  • The business owner or officer must complete, sign, and return the form by the deadline date.
  • Forms will not be accepted after the deadline.
  • The form can be used to protest the audit results. An optional Audit Survey Questionnaire will be sent by email.
Step Five
Post Audit Letter

After UIA receives a PAA, the business owner or officer will receive a Post Audit Letter mailed to the address on the business’ MiWAM account.

More information on audits

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Audit FAQs and Commonly Used Form and Fact Sheets

Interested in how long an audit takes, why you were selected or looking for commonly used fact sheets related to audits? Check out the FAQ for more information.

Tax audit investigation FAQ