UIA Tax Credit
Michigan Employers May Realize a UIA Tax Credit
The State of Michigan Unemployment Insurance Agency (UIA-formerly MESC) will issue a state tax credit to employers who have a positive balance on their account. The credit will amount to either 50% of the additional FUTA tax the employer paid for the previous year or a calculation based on previous year wages - whichever is less.
To qualify for this UIA tax credit the employer needs to meet all the following requirements:
- Be a contributing employer which has applied for the state tax credit and has paid MI unemployment taxes for five years or more and has a tax rate for 2011.
- Has a positive reserve ending balance in its unemployment experience account as of June 30, 2010.
- Has filed all quarterly tax reports for the year 2010.
- Has paid the additional .6% FUTA tax on their IRS Form 940.
This state tax credit may be applied for online or by completing paper Form UIA 1110.
Please contact us for assistance in filing for this credit.