News & Information

CCH® UNEMPLOYMENT INSURANCE — 03/20/17

Michigan sets its 2017 contribution rates

Contribution rates for employers with three or more years of experience will continue to range from 0.06% to 10.3% in 2017. The maximum rate of 10.3% includes a 6.3% maximum chargeable benefit component, a 3.0% maximum account building component, and a 1.0% maximum nonchargeable benefits component. Note that if the employer has submitted no quarterly tax reports, that employer's maximum tax rate will be 10.3%, and the employer also will be assessed a penalty of 3.0%, which is separate from the contribution rate. In addition, the new employer rate remains at 2.7%, plus part of its chargeable benefits component depending on the employer's year of liability, except for new construction employers.

The nonchargeable benefits component (NBC) for 2017 may range from 0.06% to 1.0%, depending upon an employer's experience. For an employer with no benefit charges for nine years, the NBC is 0.06%. For an employer with no benefit charges for eight years, the NBC will be 0.07%. For an employer with no benefit charges for seven years, the NBC will be 0.08%. For an employer with no benefit charges for six years, the NBC will be 0.09%. For an employer with no benefit charges for five years, the NBC will be 0.1%. For all other employers, the NBC is 1.0%.

In 2017, an obligation assessment (OA) will be applied to all contributing employers until the state's refinancing bonds are repaid. The OA calculation is structured to incorporate the employer's experience rate and a base assessment. For 2017, the OA ratio is 0.187277 and the base assessment is $63 (MUIA Communication).