Request Reinstatement of a Terminated Account
Once an employer is determined to be liable, the employer continues to be liable until any one of the following occurs:
1) The employer's company is acquired by another person or company. This is known as successorship. The termination occurs on the date of the successorship.
2) The employer makes a written request for termination of its liability and the Agency grants the request. The Agency can only grant the request if the employer did not meet, in the current and preceding calendar year, any of the tests to be a liable employer as defined in Section 41 of the MES Act. The termination will be effective the last day of the calendar quarter in which the written request was received.
3) The employer makes a written request to discontinue its elective liability. The termination will be effective the last day of the calendar quarter in which the request for termination was made, if the employer has been liable for at least 2 calendar years.
4) The Agency, on its own, terminates the employer's liability because the employer ceased to exist during the preceding calendar year, or because it did not meet, in the current and preceding calendar year, any of the tests to be a liable employer as defined in Section 41 of the MES Act. After an employer has been inactive (meaning without payroll) for 8 consecutive calendar quarters, their UIA account will be terminated. The termination will be effective the following January 1st.
If an employer whose liability is terminated files a written protest within 30 days of the date of mailing of the Determination of Termination of Liability, the liability may be reinstated. A written protest can be submitted one of two ways.
1) Through US Mail to:
UNEMPLOYMENT INSURANCE AGENCY
PO Box 8068
Royal Oak, Michigan 48068-8068
2) By selecting the Operate a Business option from the Michigan Business One Stop web site and selecting the Employer Tax Protest task. Selecting this task will link you to the online services offered by UIA through the Michigan Web Account Manager (MiWAM). If you do not currently have a MiWAM account you can register for one and open the door to the many online services offered by UIA.
If your unemployment account has been terminated for less than one year and you resume paying payroll after 8 or more consecutive quarters of no payroll, the receipt of the tax report and the payment will trigger reinstatement of the account. When the account is reinstated, your history of tax payments and benefit charges will be restored and the tax rate set at 2.7% for two years, as it would be for a newly liable employer.
Terminate a Client Entity That Joined a Professional Employer Organization
If a client entity terminates their employee leasing agreement/contract with a Professional Employer Organization (PEO), the PEO needs to complete Form UIA 1772, Discontinuance or Transfer of Payroll or Assets in Whole or Part, and check the option labeled Client Entity has terminated its contract with an employee leasing company or PEO under the reason for discontinuance.
Form UIA 1772 can also be submitted through your One Stop account by selecting the Operate a Business option and selecting the task Terminate a Client Entity of a PEO. Selecting this task will link you to the online services offered by UIA through the Michigan Web Account Manager (MiWAM). If you do not currently have a MiWAM account you can register for one and open the door to the many online services offered by UIA.
For the client entity whose employee leasing agreement/contract was terminated, the client needs to do the following:
1) Notify the Agency if employment has been resumed under a former UIA employer account number.
2) Complete and file Form 518, Michigan Business Taxes Registration if business was resumed under a different business name or there was no prior UIA employer account number.
Form 518 can also be submitted through your One Stop account by selecting the Start a Business option.
Request a Determination for Taxability of Services of Individuals
If you would like to request a determination regarding the taxability of services of individuals in your employ, complete and file Form UIA 1015, Application for Determination of Employment Status, and submit to UIA. The completion of this form will allow the Agency to make an informed decision regarding whether the individual's services and re-numeration are covered under the provisions of the Michigan Employment Security Act.
Form UIA 1015 can also be obtained by contacting the Office of Employer Ombudsman at our toll-free hotline during the hours 1-855-4UIAOEO (855-484-2636), 8:30 a.m. to 4:30 p.m. weekdays or via email at OEO@michigan.gov
Revision Date: 12/2013