Across the country, employers have to deal with unemployment insurance taxes and other expenses on a regular basis. In many cases, changes here aren’t related to the hiring and termination trends of local businesses, but are instead associated with state legislation and other legal changes.

This is the case in Michigan, where several laws signed into effect back in 2011 have directly impacted the financial wellbeing of many companies and the existing unemployment insurance system, according to Rick Haglund in an article for Michigan Live. Like many states during this previous recession, Michigan ran into problems with its trust fund and had to borrow money from the federal government. Now, that debt has to be repaid.

As a result, Haglund explained that employers are on the hook for interest payments and other penalties, but the laws enacted over the last several years may make affordability a challenge. For example, Michigan has limited the number of weeks that eligible people can receive unemployment insurance benefits, and that has caused a significant amount of people to lose out on crucial assistance. In addition, the job market is tight, and those same people are having a tough time finding a new job.

Local labor market remains strong
Thankfully for businesses and out-of-work residents of Michigan, the labor market in the state has been strong over the past several months. This could lead to an influx of skilled labor and more favorable economic conditions, helping repay the current unemployment insurance debt owed to the federal government.

According to the Michigan Department of Technology, Management and Budget, nonfarm employment figures held steady in April, with a total of more than 4 million jobs. The strongest sectors in Michigan were professional and business services, as well as government and financial activities. Over the past year, payroll employment levels have increased by more than 24,000 jobs, while nonfarm payroll employment ticked up by 288,000 this past April alone. Better yet, overall job growth has been consistently trending upward during the last 12 months.

These emerging trends are good news for local businesses. A stronger labor market and economy will increase the likelihood for lower unemployment insurance costs, and also make it relatively easier to cover any existing debts, tax rates or penalties.

At Corporate Cost Control, we work closely with employers across the country to better manage the nuances of unemployment insurance. Legislation changes on the state level could impact you today, and we welcome any questions or concerns you may have on a wide range of topics.


Contact CCC to see how we can save your organization time and money.
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(800) 207-6926

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