Michigan Taxable Wage Base Increases to $9,500

Michigan’s Department of Labor and Economic Opportunity recently announced that all employers covered under the Michigan Employment Security (MES) Act will be assessed an unemployment tax on a wage base of $9,500 for 2021.

In 2020, the standard unemployment-taxable wage base was $9,000 and a modified taxable wage base of $9,500 applied for delinquent employers. Michigan has halted the two-tiered unemployment-taxable wage base system for 2021.  

What does this mean for your business? Contributing employers must pay unemployment insurance taxes on the first $9,500 of each employee’s wages in the 2021 calendar year.

Learn more about the taxable wage base on the Michigan.gov website.