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A Newsletter for Employers March 2023 |
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Winter seems to be hanging in there this month despite the weather teasing us often with some spring-like temperatures.
As winter winds down, it’s a busy time for the staff of the Michigan Unemployment Insurance Agency (UIA). We anticipate processing over 230,000 Wage/Tax Reports filed by employers throughout the state. Remember, your first quarterly tax report is due April 25, so we are including in this month’s Employer Advisor newsletter reminders and tips to make your filing experience easier.
April 25 is also the deadline to join UIA’s Apportionment Program. Participants who qualify can spread out their first quarter tax payment over four quarters. More details below, including a link to our topical webpage with instructions on how to sign up.
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As we look to spring and summer, we know this is the time of year when many employers are hiring seasonal help. Employers in industries such as farming, garden centers, amusement parks, golf courses and marinas can file to be designated by the UIA as a seasonal employer. A business must operate during recurring periods of 26 weeks or less in a one-year period to be approved as a season employer. Construction employers do not quality. Watch UIA's Applying for Seasonal Employer Designation video for details about how to apply.
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As always, if you want to suggest an article or topic for the Employer Advisor newsletter or just want to tell us how much you enjoy reading it, please send a message to UIA-EmployerAdvisor@Michigan.gov. You can view past newsletters on the Employer Homepage at Michigan.gov/UIA.
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Here are seven things to be aware of when preparing a First Quarter Wage/Tax Report, which is due to the UIA April 25.
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- Before submitting the report, make sure employees' Social Security numbers (SSN) are correct and included. This ensures that no additional wage reporting penalties are assessed.
- Verify you have full Michigan Web Account Manager (MiWAM) access and can log into your account before filing.
- If you have a third-party representative, make sure they have the correct UIA account number to ensure proper posting to your account.
- To avoid late filing penalties, file the quarterly report as soon as possible to ensure timely posting.
- Make sure you are calculating the correct taxable wage base of $9,500 per employee to avoid an incorrect tax due.
- If your business has been sold or closed, submit a Form 1772 Notice of Change to update the account.
- If you purchased or acquired a business, submit through your MiWAM account a File Acquisition of Business form or complete Form 518 Schedule B Successorship Questionnaire to allow time to update your account.
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A change in the law allows more employers to stretch out their annual tax due payment. The UIA program is called Apportionment and now is the time to consider whether you qualify and want to sign up.
The program applies to employers who had 100 or fewer employees during the pay period that includes March 31, 2022, and 50 percent or more of their total contributions were payable with the first quarter report. Before the program change made last year by the Michigan Legislature, only employers with 25 or fewer workers qualified for the Apportionment Program.
Apportionment allows employers to elect to distribute the tax due for the first quarter into four equal quarterly payments.
The window to sign up for this important opportunity that will benefit your business’ cash flow is April 1-25.
Remember that although you can divide your first quarter payments into four equal payments throughout the remaining quarters, you are also responsible for paying any new tax liability in each of the remaining quarters.
If at any time reports are late or missing or have uncorrected errors your participation in the Apportionment Program could be revoked.
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See UIA’s Apportionment Program webpage for more details.
Interested in participating? Click the Apportionment Election box on the quarterly report in MiWAM to join.
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UIA must verify reported wages in the first initial Wage/Tax Report that liable employers provide on their Form 518 Michigan Business Tax Registration.
The payroll date must be consistent with the reported wages of $1,000 (For standard employer or $20,000 if an agriculture employer) for an account to remain active.
If there is a mismatch for the report, the employer will receive a Form 6442 Action Needed for Employer Status for the following reasons:
- You filed a zero Wage/Tax Report or wages less than the admitted payroll date in the quarter that liability occurred.
- There is no report filed by the employer during the liability quarter.
- The Wage/Tax Report is estimated by UIA.
To stop UIA from changing the account status to non-liable, correct the liability date by completing and returning Form 6442 within 10 days. If changes to the liability is not needed, then file tax reports in MiWAM.
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Don’t forget to join the Resources for Hiring Returning Citizens webinar, sponsored by the Department of Labor and Economic Opportunity’s Employment and Training section, on Thursday, March 23. The webinar is free.
A UIA representative will participate in the webinar to speak about the federal Work Opportunity Tax Credit (WOTC), which allows up to $9,600 credit if an employer hires from one of the targeted groups that traditionally experience difficulty finding work, such as veterans.
More than 60 percent of employers who responded to a survey sent out before the webinar aren’t aware of the federal tax credit through the WOTC program. You can find more program information at the UIA’s WOTC webpage.
The webinar begins at 1:30 p.m. March 23 and you can register for the free event up until the time the webinar begins.
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