The Unemployment Insurance Agency (UIA) announced last week that they are projecting an average 4.5 percent reduction in taxes paid for unemployment by Michigan businesses.
A low unemployment rate and reduced average benefit duration has resulted in less money being paid out from the Unemployment Trust Fund, which is funded with employer State Unemployment Taxes. In 2017, the average employer paid $422.10 per employee. In 2018, this is expected to drop to $403.20.
The UIA also announced that the state plans to pay off employer-funded bonds a year and a half earlier than planned. Ten-year bonds were issued in 2012 to pay off federal debt and accumulated interest associated with the $3.2 billion borrowed to cover unemployment benefit payments during the recent recession. Employers pay an Obligation Assessment in addition to their State Unemployment Tax to fund the bonds. Early repayment should save employers significantly.