Michigan Businesses Likely to Get a Break on Jobless Fund Tax

Article

Michigan officials say state businesses are expected to pay less into a fund providing temporary benefits to eligible jobless residents.

The Talent Investment Agency said in a release that unemployment insurance tax rates are projected to decrease an average 4.5 percent this year. The average employer is likely to pay about $403 per employee, down from $422 last year.

The agency says bonds issued in 2012 to provide money for increasing unemployment claims filed during the Great Recession are expected to be paid by July 2020 — earlier than expected. Officials credit “responsible management” of the fund and employers’ active participation.

Gov. Rick Snyder recently signed into law changes in how the state flags fraud in the unemployment benefits system after thousands of people were falsely accused. Snyder also seeks to create a fund to compensate those affected.