Michigan sets its 2020 contribution rates
News
Wednesday, February 26, 2020

Michigan sets its 2020 contribution rates

By Payroll and Entitlements Editorial Staff

Contribution rates for employers with three or more years of experience will continue to range from 0.06% to 10.3% in 2020. 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 2020 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 2020, there is no obligation assessment (OA) for contributing employers. The state’s refinancing bonds have been repaid (MUIA Communication).

Back to Top

Interested in submitting an article?

Submit your information to us today!

Learn More