Michigan Employer Advisor | March 2022

Michigan Department of Labor and Economic Opportunity sent this bulletin at 03/22/2022 03:40 PM EDT

A Newsletter for Michigan Employers MARCH 2022

Masthead-Graphic-with-Photo-of-Tax-Director-Darryl-Hunter to introduce his Welcome message

Graphic of Smart Phone asking for Patience due to High Call Volume

The Michigan Unemployment Insurance Agency is working diligently to make your UI issues easier. As we approach the end of a busy first quarter, we ask for your patience when you contact us during periods of high call volume. Many of the UIA services you are calling about can be accomplished online, please refer to your MiWAM account or the UIA website at Michigan.gov/UIA for answers to many frequently asked questions.

If you haven’t yet explored our Apportionment Program you may wish to do so. The Apportionment Program allows employers to extend a portion of payments throughout the 2022 tax year, but you need to select the option in your MiWAM account before April 25. Please refer to our February Employer Advisor newsletter for additional details about the program.

If you want to suggest an article or topic for this newsletter or just want to tell us about how much you are enjoying it, send a message to:

UIA-EmployerAdvisor@Michigan.gov.

You can view the past newsletters at Michigan Employer Advisor Archive.

State Information Data Exchange Makes Your Experience Easier

Graphic of Data Bits and Bytes Abstract image

The Michigan Unemployment Insurance Agency (UIA) has another way for employers to respond to requests for information. It’s called the State Information Data Exchange System (SIDES).

SIDES is a single and secure point of contact between the UIA, participating employers and third-party administrators (TPAs) that allows the UIA to send and receive info electronically through SIDES E-Response fact-finding about separation, remuneration and pension issues. This program is used by employers around the country and is a great way to streamline communications within our agency.

The UIA’s MiDAS system creates a fact-finding request to the employer and the claimant when a separation or remuneration issue is identified during the initial or additional claim filing process or when an adjudication issue is opened through the Add Nonmonetary Issue application. If the employer or TPA is marked as a SIDES participant, MiDAS will invalidate the paper fact-finding letter to the employer and will send the request electronically through SIDES.

Benefits of SIDES and SIDES E-Response

SIDES was developed as a mechanism to reduce the rate of improper unemployment insurance payments.
SIDES is an integrated computer interface between employers’ IT systems and the UIA’s network.
SIDES is designed for large employers and TPAs that handle a large volume of information and may operate in multiple states.
SIDES E-Response is a website that provides an easy and efficient portal for smaller employers to electronically post responses to information requested from the UIA.
Reduces postage and handling costs.
Unlike fact-finding via MiWAM, mail or fax, SIDES and SIDES E-Response employers and TPAs are allowed 12 days to respond to SIDES inquiries.
Form UIA 1713, Request for Information is sent to employers and TPAs electronically through SIDES and will not be physically mailed if the employer has opted into SIDES.

If you have any additional questions or would like more information about SIDES, email MIWAMSupport@Michigan.gov.

SIDES E-Response Update This Month

SIDES is undergoing an update with several exciting, efficient modifications including:

Fraud indicators alerting state workforce agencies that immediate action is needed.
New process to collect employment details from temporary staffing agencies.
Gathering better up-front information on employee separation to reduce follow-up time.
The ability to upload supporting information pertaining to human resource documentation.

These updates are scheduled to be implemented Wednesday. SIDES will be temporarily unavailable from 2 – 6:30 p.m. while these updates transition.

Making Changes to Your UI Wage/Tax Report

Adjusting your UIA Wage/Tax Report requires a valid reason.

One of the most common reasons employers want to adjust wage/tax report is due to an employee being exempt from unemployment liability. If you have determined that wages were inadvertently reported and will result in credit after the adjustment, you may only adjust your current report and the previous 12 quarters depending on when the payment posted to the quarters in question.

This will most likely result in a credit to your account. If the credit is more than $25, you may request a refund, or you can apply the credit to future quarters.

If making the changes will result in a debit balance, you may adjust your current report and the previous 24 quarters.

Reporting Corporate Officer Wages as Liable for UIA Taxes

Graphic of Tax Form with Abstract Business people

Corporate officers may be subjected to pay UIA taxes.

A key factor in determining if a corporate officer must pay UI taxes is if the officer is performing services for the business enterprise and participating in the daily operations of the business. If so, their wages must be reported and taxed. Most importantly, they are eligible for unemployment benefits if they find themselves unemployed due to no fault of their own. There are no provisions in UIA law that exclude the services of a corporate officer for tax purposes.

Wages are not taxable for a shareholder with only ownership interest. The shareholder in this case is not performing any services or part of the daily operation of the business. UIA does not recognize an LLC as a corporation and as a result, the business enterprise must be incorporated.

Advisor Footer Graphic with Contact info: Call UIA at (855) 484-2636 or email at Michigan.gov/UIA.

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