Changes in Michigan’s unemployment law went into effect in early April and will result in higher payments by reimbursing employers to the Michigan Unemployment Insurance Agency (UIA).
Reimbursing employers, about 2.2 percent of all Michigan employers, do not pay quarterly unemployment insurance taxes. Instead, they reimburse UIA dollar-for-dollar for benefit charges paid to former employees.
Starting this year, reimbursing employers will pay a maximum increase of $84 for each week an employee receives the maximum weekly unemployment benefit after losing their job. That’s due to changes in the Michigan Employment Security (MES) Act that went into effect April 2. The law increases the weekly maximum benefit amount from $362 to $446 and expands the maximum weeks of eligibility to 26 weeks, from 20 weeks.
Some reimbursing employers will be required to submit payment to UIA beginning in the second quarter of 2025, depending on the employer’s billing cycle:
- Quarterly for non-profit entities and state agencies.
- Annually for local governmental and Indian tribes/tribal units.
Reimbursing employers should also note that the maximum weekly benefit amount will increase by $84 each of the next two years, on Jan. 1, 2026, and Jan. 1, 2027. Starting on Jan. 1, 2028, and in subsequent years any change in benefit amounts will be tied to the Consumer Price Index calculated by the federal Bureau of Labor Statistics.
Courtesy of the Unemployment Insurance Agency Michigan Employer Advisor
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