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A Newsletter for Michigan Employers January 2022 |
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Happy New Year! The Michigan Unemployment Insurance Agency wishes you a healthy and prosperous 2022. We hope that you and your family remain alert of the safety precautions as Michigan’s positive COVID-19 results are on the rise. Please remember that vaccines, boosters, masking and social distancing are the keys toward eradicating this pandemic.
You may have seen the recent news that UIA identified more than 10,000 likely fraudulent claims filed over the holidays. It’s an important reminder that employers should watch their monetary determinations for messages about possible fraudulent filings. Please respond immediately so we can address the issue.
Also, please take a moment to review Gov. Whitmer’s Executive Order 2021-16 and Executive Directive 2021-14, which will assist UIA in fighting unemployment insurance fraud and protect the taxes you pay that fund the system. Be assured that we are hard at work protecting Michigan employers and unemployed workers.
If you know someone or suspect that you are a victim of UI claimant/benefits fraud or identity theft, report it through Michigan Web Account Manager (MiWAM). Go to UIA’s new What is Fraud webpage for info on preventing fraud and identity theft.
If you want to suggest an article or topic for the Michigan Employer Advisor or just want to tell us how much you are enjoying it, please send a message to the following email: UIA-EmployerAdvisor@Michigan.gov. You can also view past issues of this newsletter at Michigan Employer Advisor Archive.
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UIA is taking a holistic approach to detect employers who commit UI fraud.
Did you know that employers who commit fraud have an unfair business advantage by avoiding paying income taxes, FICA taxes, unemployment taxes and workers' compensation premiums on workers that they do not classify as employees? Fraudulent employers will underbid employers who do not commit fraud. Lessor taxes go into the UI trust fund resulting in higher taxes for all other employers in the state to pay for benefits.
In June 2021, UIA’s Field Audit section developed an employer fraud initiative in the Tax & Employer Services Division. The purpose of the Field Audit section is to take a proactive approach to detecting, investigating and enforcing compliance with the Michigan Employment Security (MES) Act and Administrative Rules. The result is fewer taxes going into the UI trust fund, leading to higher taxes for all other employers in the state to pay for benefits.
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When UIA Identifies employers committing fraud, the Agency will require the liable employer to do the following:
- Pay the required unemployment taxes.
- Become the liable employer immediately.
- Be scheduled for future audits to ensure compliance.
- Be subjected to a compliance audit which could go back three years
(12 quarters). If fraud is suspected, the audit may be extended to six years.
If the employee misclassification continues, it is considered an intentional violation of state law, and the employer may be subjected to penalties that quadruple the amount of taxes owed on any misclassified wages. The Employer Fraud Section works hard to maintain the integrity of the Unemployment Insurance program and the solvency of the UI Trust Fund.
SUSPECT FRAUD?
If you want to report an employer who you believe may be committing fraud, call the Office of Employer Ombudsman at 1-855-484-2636 or report fraud to UIA-FieldAudit-Employer@Michigan.gov
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In December, UIA launched the employer customer feedback option. Employers speaking to a live agent will be asked to take an automated, five-question survey, either by phone or email, after their call. The survey is available through the Office of Employer Ombudsman:
1-855-4UIAOEO (1-855-484-2636), which received more than 10,000 employer telephone inquiries last month.
WE WANT TO KNOW:
- Was the representative professional and courteous?
- Was the representative knowledgeable?
- Was the information you were given easy to follow and understand?
- Was your concern addressed today?
- How would you rate your overall customer experience with UIA today?
Please take the time to tell us how we are doing by providing your feedback at the end of your phone call.
We are aware that January is a pivotal month for you as you wrap up your year-end accounting. During this time, the UIA Ombudsman Office experiences high call volumes but we are moving mountains to shorten hold times and provide you with expert customer services. As an alternative, we appreciate web notices through your MiWAM account and usually respond within one business day.
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UIA has mailed tax rates for 2022. Employers have until February 1, to protest their UI Tax Rate Determinations.
UIA mails Form 1771 annually (Tax Rate Determination
for Calendar Year), detailing an individual employer’s unemployment tax rate. In 2022, there are no additional Solvency Rates and Obligation Assessments added to
your tax rate.
The tax rates were mailed on Dec. 29, and employers have 30 days from that date to protest the rate. The protest is considered timely if it is filed before February 1.
We recommended that employers use their MIWAM account to file a tax rate protest to assure your protest is received in timely manner.
You can also complete and mail a UIA Form 1471-T (Protest/Appeal of a (Re)Determination), which was included with the Form 1771 in the mailings to employers. Complete and return the form to the address below:
___________________________________________
State of Michigan, Unemployment Insurance Agency
P.O. BOX 8068, Royal Oak, MI 48068-8068.
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