Taxable Wage Base

How does the taxable wage base affect my organizations UI tax liability?

Your Michigan tax liability has the potential to increase over prior years when the taxable wage base was $9,000 due to the current year's increase.
What does this mean for my business?

Contributing employers must pay taxes on the first $9,500 of each employee’s wages in the 2021 calendar year.
What is a taxable wage base?

Contributing employers covered under the Michigan Employment Security (MES) Act are required to pay unemployment insurance taxes on their employees’ wages. The taxable wage base is the amount of an employee’s wages that is taxed by the Unemployment Insurance Agency (UIA) each calendar year and payable by the employer.
What is the current taxable wage base?

In 2020, the Trust Fund balance fell below $2.5B, therefore, the taxable wage base is $9,500. The MES Act provides for a reduced taxable wage base if the UIA Trust Fund reaches or exceeds $2.5B and remains at or above $2.5B for two consecutive quarters.
Will the $9,500 TWB be reflected in my tax account when my quarterly reports are filed?

Will the $9,500 TWB be reflected in my tax account when my quarterly reports are filed?

Taxable Wage Base