A Newsletter for Employers             October 2024

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UIA-EmployerAdvisor
@Michigan.gov.

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Michigan.gov/UIA.

This time of year signifies the changing of the seasons from summer to fall. Luckily, winter is still a couple of months away and there is so much to appreciate this time of year: Cider mills, campfires, and trips to see the awesome explosion of leaf colors throughout this great state.

The changing of the seasons also reminds us that it’s time for football and our exciting Detroit Lions are once again showing their fans that they’ve ended the “Same Old Lions” mantra. They’re the cream of the crop in football. Is that cool, or what?

At the same time, we have to give a shout out to the Detroit Tigers and their miraculous baseball season. What an exciting ride to reach the playoffs for the first time in 10 years. We salute their success and look forward to spring training in February and next season.

Fall also reminds us here at the Michigan Unemployment Insurance Agency (UIA) that 3rd Quarter Wage/Tax Reports are due by Oct. 25. Please make sure you have completed this important requirement. See the article below for more details.

The final Employer Seminar for 2024 is Nov. 13. Please sign up if you want to learn about unemployment insurance. Click on the image at the end of the newsletter to register.

Annual UIA Review of Inactive Accounts Scheduled for November

Every year in November, the Michigan Unemployment Insurance Agency (UIA) reviews employer accounts and terminates the ones where there has not been any activity for 12 or more quarters.

Each employer whose accounts have been determined to be inactive will be notified of the pending account termination.

If an employer does not have payroll, then no action is required to be taken. If an employer has payroll but has failed to file the Quarterly Wage/Tax Report, then this is the time to file any missing reports and avoid an account deactivation.

Here's How Employers Can Claim Credit Account Balance Refund

In late September, the Michigan Unemployment Agency (UIA) mailed to employers who have a credit on their accounts Form 6306 Notice of Credit Balance.

UIA has an online process for employers to request their refund through their Michigan Web Account Manager (MIWAM) account. It’s the easiest and fastest way.

Here’s how to do it if you have access to MiWAM:

1. Log into your MiWAM account.
2. Click on UI Tax.

3. Click on the Account Services tab and then select Apply for Credits under the Account Maintenance section to complete the request.

4. Finally, click on “Submit”.

There is no need to use the manual process by completing Form 6306 Notice of Credit Balance to request a refund. Employers can use Form 6306 to request a refund if they do not have access to their MIWAM account.

If an employer is requesting the refund be sent to a different address, then Form 6306 must be signed by an authorized representative of the employer. 

If a business has closed and a different name is required on the refund check, provide a copy of incorporation paperwork naming you as the sole owner of the business. If the business has multiple owners, a notarized letter from each owner must be provided if the request is to issue the refund under one individual.

Now is the Time to File Missing Quarterly Reports Due to UIA

The Michigan Unemployment Insurance Agency (UIA) mailed on Sept. 17 a reminder to employers to file their Quarterly Wage/Tax reports.

Reports for the Third quarter of 2024 are due Oct. 25.

Form 1761 Potential Tax Rate Increase Due to Missing Report(s) was sent to employers missing a report for quarters ending between Sept. 30, 2023, and June 30, 2024. Failure to file these reports before the first week of December will result in an additional 3 percent increase to your 2025 tax rate and late filing penalties.

PRO TIP:  UIA does not accept quarterly reports in paper form. File the reports through your Michigan Web Account Manager (MiWAM) account; it’s fast, easy, and secure.

When to Report Taxes as an LLC Member or Partner LLP/PLLC

Member wages are not taxable for unemployment if an employer is registered with the State of Michigan as an LLC-Corporation, LLC-Partner, LLC-Individual, or LLP/PLLC.

The wages paid to members or partners are not taxable for unemployment taxes.

The Michigan Unemployment Insurance Agency (UIA) has measures to identify individuals who continue to report wages excluded from unemployment taxes. If it’s determined the individual is the sole employee but reported wages for a newly established account, the Employer Account Number (EAN) is inactivated, and the account status is also changed to non-liable employer.

The only way a member’s wages are taxable for unemployment is if the LLC is owned by a corporation.