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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 is my tax rate?Log in to your MiWAM account and go to account services where 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 $9,500 of wages during the calendar year for each employee.
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.